n107  2100  20 Nov 80
 
BC-WAR (UNDATED) 2takes
(MILITARY ANALYSIS)
     Drew Middleton is the N.Y. Times military correspondent.
By DREW MIDDLETON
c. 1980 N.Y. Times News Service
    The Iraqi army and air force still retain the initiative in the
Persian Gulf war despite apparently inflated Iranian reports of
successful counterattacks. But United States and NATO analysts have
concluded that the invaders have made about as much progress as is
possible without large-scale reinforcement.
    Such reinforcement would seriously strain Iraqi military resources.
According to British military analysts, nine of Iraq's 12 divisions
are now committed to the battle with eight in line and the ninth
acting as a mobile reserve.
    The expenditure of arms and ammunition is apparently beginning to
reduce Iraqi resources. There are reports, which United States
analysts questioned, that Saudi Arabia is increasing transfers of
weapons and military supplies to Iraq to meet the growing needs of
the battlefront.
    What can be said with reasonable certainty, analysts agreed, is that
after 60 days of war both sides have suffered heavy losses in
materiel, probably as much from accidents arising from
around-the-clock use as from battle damage.
    The claims on both sides of the destruction of enemy tanks are
clearly inflated. One source pointed out that the Iranians claimed to
have destroyed 164 tanks in the last two days. That is more than the
British Eighth Army lost when breaking through the El Alamein line in
the first day of the desert war's greatest battle.
    Assertions by Iran that it is following a ''strategy of attrition''
in destroying Iraqi men and equipment are discounted by Western
analysts. Attrition, they point out, is the negation of strategy. It
means that neither side has found a way of breaking out of a
battlefield stalemate and, like the Germans, French and British from
1915 to 1917, only seek to inflict the heaviest casualties on the
enemy.
    Much has been made in Iranian communiques about the supposedly heavy
fighting around Susangird, which lies 20 miles east of the frontier
on the road into Ahwaz, the capital of Kuzistan Province. The true
picture as it was explained by American sources is quite different.
    In their initial attcks the Iraqi forces bypassed Susangird to the
north. Their methodical advance in that direction, however, was
impeded by the activities of Iranian revolutionary guards inside the
city. The most recent fighting there is the result of Iraqi attempts
to end these activities with heavy shelling. In Susangird, as
elsewhere, the Iraqis have not risked troops in house-to-house
fighting but have been content to shell strongpoints held by the
revolutionary guards.
    Despite the claims of Tehran's communiques, therefore, the consensus
among analysts is that the war continues to go in Iraq's favor. They
believe that if Baghdad wished to risk the manpower, the remaining
Iranian positions in the province, Abadan, Ahwaz and Dizful, could be
taken. But Western military observers on the spot have reported that
the Iraqis in each case have opted for heavy artillery bombardment
accompanied by isolated air strikes whenever the Iranians mounted a
reinforcement mission.
    These sources report that the remaining Iranian troops in the three
points are in desperate need of supplies. Some food and ammunition is
reaching Abadan by water but Ahwaz and Dizful are encircled by
Iraqis. The encircling forces have been penetrated at intervals by
small units carrying supplies but these, the sources said, cannot
suffice to maintain the garrisons, much less mount counterattacks.
    In this situation, one NATO source said, Iranian claims to have
driven the Iraqis back five miles from the border city of Mehran, 150
miles northwest of Susangird, are ''ridiculous.'' He said there was
no objective evidence that the Iranians were doing more than
''hanging on everywhere along the front.''
    Some analysts believe that the Iranian claims of success are
intended to cloak the serious distnces that have broken out in the
forces at various points along the front. These involve
confrontations between representatives of the ruling government in
Tehran and between the revolutionary guards and the regular army
officers who are directing the battle.
    The government representatives, one source said, countermand the
regular officers' orders and frequently set up defensive arrangements
that the regulars consider suicidal.
    (MORE)
    
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n108  2103  20 Nov 80
 
BC-WAR 1stadd
(MILITARY ANALYSIS)
NYT Undated: consider suicidal.
    If, as many analysts believe, the present tactical situation
represents the high tide of the invasion, what are the prospects for
both sides?
    No one believes that the Iranians, as presently organized,
munitioned and led, are strong enough to drive the Iraqis out of
Kuzistan Province. Nor is the Iranian air force, whose flight level
has dropped drastically in the last week, considered strong enough
either to disrupt Iraqi battlefield dispositions or seriously damage
the Iraqi enconomy.
    Parenthetically, they add that they cannot understand Iraqi
inactivity in the air. Although raids by two or three MiGs, one on
the holy city of Qum, have been reported, there has been no attempt
in the last two weeks to use the supersonic, high-level TU-22 bombers.
    If the Iraqi army suspends offensive operations and ''sits down,''
as one source put it, there would be very little the Iranians could
do about it by conventional means. According to European intelligence
reports one faction in the Teheran government accepts this situation
and is urging a guerrilla strategy on the authorities.
    Guerrilla wars have a strong attraction for regimes that have been
beaten in the field, analysts said. But their effectiveness, as was
proved in Russia and Western Europe in World War II, depends upon the
presence of strong regular forces that, if not yet engaged, are
preparing to take the offensive. This condition is not present in
Iran and few analysts see any prospect that such forces will take
shape in the immediate future.
    
ny-1121 0003est
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a022  2343  20 Nov 80
PM-US-Hostages,350
U.S. Officials Caution Against Hostage Release Hopes
    WASHINGTON (AP) - U.S. officials are cautioning against renewed
hopes for the imminent release of the American hostages in Iran,
despite Secretary of State Edmund S. Muskie's assurance that the
United States has agreed in principle to Iranian demands for the
captives' release.
    ''You can accept the principle of something, but the details of how
you carry it out can be very significantly different,'' State
Department spokesman John H. Trattner told reporters Thursday.
Trattner also cautioned against ''over-excitement'' and expectations
that the 52 Americans, now in their second year of captivity, are
about to be freed.
    Trattner was attempting to play down what appeared to be a more
optimistic assessment Muskie made earlier in the day.
    ''We've said publicly we accepted the four points in principle,''
Muskie said, referring to the terms set down Nov. 2 by the Iranian
parliament. ''I think the way in which the Iranians have handled our
proposals is positive.''
    In Tehran, meanwhile, the official Iranian news agency, Pars, quoted
Prime Minister Mohammad Ali Rajai as saying the United States ''has
not understood the problem'' of the hostage crisis. Rajai said that
''we intend to elaborate the matter more.''
    Iran has not responded officially to the American proposals, carried
to Algiers on Nov. 10 by Deputy Secretary of State Warren M.
Christopher and four other U.S. officials. Details of the American
response have not been disclosed.
    The United States and Iran have been dealing through Algeria in the
hostage negotiations.
    The Iranians have demanded an American promise of non-intervention
in Iranian affairs, the freeing of more than $8 billion in assets
frozen by the Carter administration in retaliation for the seizure of
the hostages, cancellation of all American claims against Iran and
return of the wealth of the late Shah Mohammad Reza Pahlavi.
    The last two demands - cancellation of the claims and return of the
shah's wealth - pose the greatest legal and practical obstacles for
the Carter administration.
    
ap-ny-11-21 0244EST
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n500  0131  21 Nov 80
 
BC-SKED-11-21
    The FIELD NEWS SERVICE daily report will resume following this
budget. The editors may be phoned at 312-321-2801.
    
    
    FRIDAY, NOV. 21, 1980
    
    
    BEHIND THE TOP HEADLINES
    
    WASHINGTON (Guidry - Baltimore Sun - WEAPONS) - A pattern of public
claims and private qualms is not unique in controversies between
competing interests over weapons systems, but with the F-18 it has
been more visible than usual-illustrating the enormously high stakes,
both military and financial, that are bound up in such a program.
First of a five-part series on U.S. weapons systems. Later parts will
examine the Navy's frigates, the search for a strategic bomber to
replace the B-52, the A-10 Thunderbolt ground-support plane, and
changes in Army strategy brought on by the Rapid Deployment Force.
COMPANION PIECE, HORNET, LISTED UNDER DOMESTIC. (2,400) FNSPM
    
    WASHINGTON (Leubsdorf, Barnes - Baltimore Sun - CABINET) - With the
exception of William Simon's expected return to the Treasury
Department, the Reagan Cabinet remains unsettled, with much depending
on whether George P. Schultz becomes secretary of state. Here is a
rundown on the contenders for each of the Cabinet posts. (1,900) FNSPM
    
    
    INTERNATIONAL
    
    MADRID (Adamson - Telegraph - SECURITY) - The U.S. is placed on the
defensive for the first time at the European Security Conference,
with a Soviet attack on the use of sanctions as a lever to force
withdrawal from Afghanistan. (300) FNSPM
    
    PEKING (Martin - Baltimore Sun - GANG) - China's trial of the
century begins as Mao Tse-tung's widow, defiantly displaying the
regal airs of the empress many say she wanted to become, joins nine
male codefendants in the dock to face charges of murderous intrigues
and usurpation of power during the chaotic decade of the Cultural
Revolution. (1,050) FNSPM
    
    WASHINGTON (Telegraph - GUNS) - A Carter administration ban on the
sale of American weapons to the Royal Ulster Constabulary in Northern
Ireland is likely to be lifted soon after President-elect Reagan
takes office. (750) FNSPM
    
    MOSCOW (Wade - Telegraph - CORRUPT) - Mayor Vyacheslav Voronkov of
the Black Sea resort of Sochi is sentenced to 13 years in prison for
bribery and corruption. (250) FNSPM
    
    SALISBURY (Mills - Telegraph - TEKERE) - The murder trial of
Zimbabwe cabinet minister Edgar Terkere and seven of his bodyguards
on charges of killing a white farmer ends, but the judge says it will
take a long time for him to reach a verdict. (650) FNSPM
    
    LONDON (Erlandson - Baltimore Sun - QUEEN) - Queen Elizabeth opens
Parliament by reaffirming the British government's continued
adherence to strict monetary and fiscal policies to combat inflation.
(750) FNSPM
    
    WASHINGTON (Trewhitt - Baltimore Sun - SCHMIDT) - After spending
over an hour with President-elect Reagan, West German Chancellor
Helmut Schmidt declares himself satisfied with their discussions.
Though Schmidt was in Washington for an official farewell to
President Carter, some sort of meeting with Reagan had been expected.
(1,150) FNSPM
    
    WASHINGTON (Trewhitt - Baltimore Sun - HOSTAGE) - Iran has handled
in a ''positive'' way U.S. proposals for the release of 52 American
hostages, says Secretary of State Edmund Muskie, but still has not
provided an official response. (500) FNSPM
    
    
    DOMESTIC
    
    WASHINGTON (Edsall - Baltimore Sun - HORNET) The F-18 Hornet, an
aircraft that has generated the most expensive weapons program in
production, is starting to threaten the traditionally pork-barrel
element of congressional arms procurement. Companion story with
WEAPONS. (3,050) FNSPM
    
    WASHINGTON (Rousmaniere - Baltimore Sun - TAX) - The centerpiece of
President-elect Reagan's economic policy, a three-year slash in
personal tax rates, appears headed for a difficult showdown in the
least likely place: next year's Republican-controlled Senate Finance
Committee. (1,050) FNSPM
    
    WASHINGTON (Lewthwaite - Baltimore Sun - REAGAN) - President Carter
and President-elect Reagan meet at the White House to discuss the
problems one will soon leave and the other soon inherit, but it was a
strained and somewhat awkward affair. (750) FNSPM
    
    WASHINGTON (Edsall - Baltimore Sun - SPEND) - The $632.4 billion
budget resolution enacted by Congress retains a large-$27.4
billion-deficit, but would allow passage of a $35 to $40 billion tax
cut early next year. There are strong indications, however, that the
deficit will quickly grow much larger. (550) FNSPM
    
    WASHINGTON (Matthews - Baltimore Sun - AID) - George C. Warner III,
a 47-year old State Department employee who directed food procurement
for Cambodian refugees, is indicted by a Washington federal grand
jury on charges of taking $138,562 in bribes to influence the award
of a $4 million refugee food program contract. (450) FNSPM
    
    
    COMMENTARY
    
    UNDATED (Royko - Sun-Times - ROYKO) - The honeymoon is already over
for Ronald Reagan, at least the one between the president-elect and
the far right wing. They're mad because he's not far enough to the
political right. (1,050) FNSPM
    
    
    BUSINESS
    
    UNDATED (Furlong - Sun-Times - ENERGY) - A Minnesota electric
utility may raise catfish for profit if experiments on how they fare
in the warm-water discharge from plant operations succeed ... Chinese
oil output isn't what it's been cracked up to be. (650) FNSPM
    
    UNDATED (Darby - Sun-Times - DARBY) - There's no real reason why
American factories can't turn out products that are equal or superior
in quality to anything the Japanese or the Europeans produce, says
Edwin Carlson of Victor Business Products. ''It's not a worker
problem, it's a management problem.'' (850) FNSPM
    
    
    ARTS AND ENTERTAINMENT
    
    UNDATED (Hill - Evening Sun - DALLAS) - TV commentary: The power to
do something, anything-good, bad or different-is admired and envied
today, which is why J.R. is a genuine American hero and why millions
of people want to see the person who shot him brought to justice.
(1,100) FNSPM
    
    UNDATED (Kupcinet - Sun-Times - KUP) - KUP's column on people and
personalities in the news. (750) FNSPM
    
    endit sked
    
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n504  0205  21 Nov 80
 
BC-HOSTAGE-11-21
    By Henry L. Trewhitt
    (c) 1980, The Baltimore Sun (Field News Service)
    WASHINGTON-Iran has handled in a ''positive'' way U.S. proposals for
the release of 52 American hostages, the secretary of state says, but
still has not provided an official response.
    Secretary Edmund S. Muskie agreed with Iranian officials Thursday
that the U.S. approach adopted ''in principle'' Iran's own terms. But
the State Department explained later that he meant no more than
President Carter has said: that Iran's four conditions provide a
basis for negotiations.
    The secretary's use of the phrase ''in principle'' to reporters
caused brief confusion. Was he suggesting, the department was asked,
that Iran was justified in demanding return of the late shah's
wealth, the most difficult of the terms for the United States to meet?
    No, a spokesman responded. It meant merely what Carter has said,
that the United States accepts Iran's proposals as ''the basis for
the resolution of the crisis.'' The administration was still waiting
for Iran's judgment on American counter-proposals.
    Three weeks ago Iran's parliament, the Majlis, approved four
conditions for release of the hostages: return of the late shah's
wealth; unfreezing of U.S. sanctions against Iran; cancellation of
claims by Americans against Iran, and a U.S. pledge against
interference in Iran's internal affairs.
    Only the last one is easy for the administration to meet. The deputy
secretary of state, Warren Christopher, delivered a reply last
week-through Algeria as intermediary-citing legal difficulties and in
effect proposing compromises.
    Muskie summarized the current status of the exchanges after he
escorted Hans-Dietrich Genscher, the West German foreign minister,
from the State Department after a meeting Thursday.
    How did he respond, he was asked, to the comment of Mohammed Ali
Rajai, Iran's prime minister, that the United States had accepted
Iranian terms ''in principle''?
    ''We have said publicly that we accepted the four points in
principle,'' he replied. ''But that doesn't tell you much about the
future, does it?''
    He commended Iran's revolutionary government for handling the U.S.
proposals quietly and seriously. That attitude, he said, was welcome.
    Rajai, he noted, had said Iran would ask for clarification of the
U.S. position regarding the late shah's fortune, but so far has not
done so. Until he receives Iran's formal position, he added, ''I
don't think it is useful to try to respond.''
    Clarifying Muskie's remarks, his spokesman said later Thursday that
all U.S. actions ''will be taken in conformity with our Constitution
and our laws and consistent with our national honor. Our response
meets those criteria.''
    It now has been more than a year since Iranian revolutionaries
seized the U.S. Embassy and its personnel in Tehran.
    ENDIT TREWHITT
    
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a053  0315  21 Nov 80
PM-UN-Afghanistan,360
Soviets Reject New U.N. Withdrawal Demand
By WILLIAM N. OATIS
Associated Press Writer
    UNITED NATIONS (AP) - The Soviet Union today rejected a new General
Assembly demand that it pull its troops out of Afghanistan, just as
it rejected the Assembly's first withdrawal demand 10 months ago.
    Tass, the official Soviet news agency, accused the assembly of
''direct interference'' in Afghanistan's internal affairs and said the
resolution was ''aimed at turning the United Nations into an
instrument for such interference.''
    Western, Islamic and other Third World nations cast 111 votes
Thursday for a Third World resolution demanding ''the immediate
withdrawal of foreign forces from Afghanistan.'' There were 22
opponents and 12 abstentions.
    The Tass report made no mention of the size of the vote against the
Soviet Union.
    Soviet Ambassador Oleg A. Troyanovsky told the assembly the United
States and China were responsible for the Kremlin's military
intervention in its Central Asian neighbor because they were waging
''an undeclared war'' against Afghanistan.
    Troyanovsky called the resolution ''an inadmissible interference in
the internal affairs of Afghanistan and a gross violation of the
United Nations charter.''
    An estimated 85,000 Soviet troops have been stationed in Afghanistan
since the Kremlin first intervened last December to replace
pro-Marxist Afghan President Hafizullah Amin with Babrak Karmal,
another pro-Soviet leader. Amin was executed in the Christmas week
intervention. The Soviets said they moved in to help the communist
government put down a rebellion by anti-communist Moslem rebels waging
a guerrilla war.
    The Soviet Union rejected a similar resolution adopted by the
Assembly on Jan. 14 by a vote of 104-18 with 18 abstentions. That
resolution was passed in an emergency assembly session called after
the Soviet Union vetoed Security Council action against the incursion.
    Afghan Foreign Minister Shah Mohammad Dost said ''no resolution or
special representative'' would deter the Afghans from their course,
and only direct negotiations among Afghanistan and neighboring
Pakistan and Iran could lead to a settlement.
    
ap-ny-11-21 0616EST
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a059  0342  21 Nov 80
PM-Volcano-Avalanche,270
USGS Says Volcano Avalanche Among Largest In History
    PORTLAND, Ore. (AP) - An avalanche on Mount St. Helens during the
volcano's devastating May 18 eruption was among the largest in world
history, with enough debris to bury downtown Portland, according to
the U.S. Geological Survey.
    The avalanche, which occurred on the mountain's north face, released
enough rock, dirt, ash, snow and debris to bury the city's 40-story
First National Bank Tower, according to Dick Janda, a scientist who
participated in a U.S.G.S. avalanche study. About 2.8 cubic kilometers
were released, he said.
    Susan Russell-Robinson, a survey geologist, said Thursday the Mount
St. Helens avalanche was probably slightly smaller than the one
triggered by the 1957 eruption of the volcano Bezymianny in the Soviet
Union.
    However, George Plafker, a survey geologist who has studied
landslides in Alaska and South America, said the Mount St. Helens
avalanche dwarfed such catastrophes as the 1903 slide that buried half
the Canadian town of Frank, Alberta.
    Janda said the May avalanche blasted down the mountain in three
lobes, the longest roaring down the Toutle River valley for 17 miles.
    The second lobe covered part of Spirit Lake and the third shot
across the Toutle valley, climbed a 1,000-foot ridge and piled down
the other side into Coldwater Creek.
    Janda said the avalanche must have had a velocity of more than 250
mph.
    Plafker said he knew of two prehistoric avalanches, one in Iran and
one in Switzerland, that probably were larger than the Mount St.
Helens eruption.
    
ap-ny-11-21 0643EST
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a062  0406  21 Nov 80
PM-War Rdp,590
Iran Claims Victories At North End Of Iraqi Invasion Front
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian and Iraqi troops battled for a
strategic chain of heights along the foothills of western Iran's
Zagros Mountains today.
    Both warring nations on the northern rim of the Persian Gulf
reported rocket-firing helicopter gunships backed raids on the hills
overlooking Iran's border towns of Mehran, Gilan Gharb and
Sar-Pol-e-Zahab.
    The three towns, conquered by invading Iraqi forces in the first
week of the 61-day-old war, control the routes from Iran's western
border to the Iraqi capital of Baghdad, 90 miles farther westward.
    Military communiques from the two sides suggest the battle for the
heights might become crucial to Iran's week-long counter-offensive at
the northern and southern sectors of Iraq's 300-mile invasion front.
    Control of the heights is essential for holding the three towns as
well as the major border-crossing Iranian city of Qasr-e-Shirin, which
also is in Iraqi hands.
    Iran claimed Thursday it recaptured the strategic heights, killed
590 Iraqis and drove the invaders back three miles from their
positions.
    Iraq said it killed 85 Iranians in th ks Thursday in Susangerd,
100 miles to the southeast.
    None of the claims could be confirmed because Western reporters have
been barred from traveling to the battlezones on a regular basis
since Iraq invaded Sept. 22.
    The capture of Susangerd would let the Iraqis drive 35 miles farther
southeast to Ahwaz, capital of Iran's oil-rich Khuzistan Province,
and the oil wells beyond.
    The Iraqis are shelling Ahwaz from the south, having pushed there
after taking most of the port of Khorramshahr and surrounding the
nearby refinery city of Abadan, 65 miles to the south on the Shatt
al-Arab estuary, Iraq's only waterway to the Persian Gulf.
    Iran's Pars news agency said one Iranian was killed and 25 injured
in Iraqi shelling of Abadan and the area was ''relatively calm''
during the night after Iranian forces attacked Iraqi positions on the
highway to Ahwaz.
    Swedish Socialist Party leader Olof Palme, U.N. Secretary-General
Kurt Waldheim's special envoy, was scheduled to visit the Khuzistan
war zones today and meet with Iraqi President Saddam Hussein in
Baghdad on Saturday.
    Iranian President Abolhassan Bani-Sadr and Prime Minister Mohammad
Ali Rajai met with Palme Thursday and both told him there would be no
talk of peace until the Iraqis are driven from the east side of the
Shatt al-Arab and other occupied Iranian territory.
    Rajai also said, in a separate news conference, that the United
States ''has not understood the problem'' of the 52 American hostages,
who today spent their 384th day in captivity in Iran, and that Iran
wanted clarification of the U.S. position on returning the shah's
wealth.
    Iran's Parliament said Nov. 2 the hostages would be freed if the
U.S. government returned the wealth of the late Shah Mohammad Reza
Pahlavi, released $8 billion in Iranian assets frozen in U.S. banks,
cancelled U.S. lawsuits against Iran and pledged not to interfere in
Iran's affairs.
    The U.S. government responded Nov. 12. Details were not made public,
but sources said the reply included the non-interference pledge and
explanations of the legal difficulties in meeting the other terms.
    Secretary of State Edmund S. Muskie told reporters in Washington
Thursday, ''We've said publicly we accepted the four points in
principle,'' but that he did not want to comment on Rajai's remarks
until the U.S. government got a formal response from Iran.
    
ap-ny-11-21 0707EST
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a078  0549  21 Nov 80
PM-Bani-Sadr,330
    LONDON (AP) - Iraq's army will collapse within two months because it
did not expect extended fighting or heavy losses in the war with
Iran, Iranian President Abolhassan Bani-Sadr was quoted as saying in
an interview published today.
    Bani-Sadr made the remarks in an interview at his headquarters
''near the front'' with an Iranian reporter last Monday as the war
entered its ninth week, the London-based Middle East Economic Review
reported.
    ''The Iraqis expected a short war and fear prolonged fighting,''
Bani-Sadr was quoted as saying by the 12,000 circulation weekly.
    ''In this war (Iraqi President) Saddam Hussein's army in the desert
faces heavy losses and in two months Saddam Hussein will no longer
have an army.''
    Iraq has said it will withdraw from Iranian territory if the Tehran
regime recognizes Iraqi ''rights'' to control of the Shatt al-Arab
estuary, its only link to the Persian Gulf. Iran has repeatedly
refused. Before the war, a line down the middle of the Shatt served as
the border between the two countries.
    Bani-Sadr said both Iran and Iraq have already suffered huge
economic damage because of the war.
    ''It is the other war, the economic war that comes after, which
poses the real danger,'' he said.
    ''Iraq is in the same economic position as we are. That's why I
think Saddam Hussein is a war criminal. He has started this war for no
reason.''
    Bani-Sadr's remarks also reflected his disputes with hardline
members of the Iranian regime.
    Asked if he still considered Prime Minister Mohammad Ali Rajai
''incompetent,'' Bani-Sadr said: ''My estimation was correct. He has
since shown that I had good reason.''
    Bani-Sadr's choice of Iran's national police chief, Mustafa Mir
Salim, for prime minister was rejected by members of the
clergy-dominated Islamic Republican Party which controls Parliament.
    The hardline group pushed for Rajai, a 47-year-old former high
school teacher, and Bani-Sadr, who had called him incompetent, dropped
his opposition in August after weeks of infighting.
    
ap-ny-11-21 0850EST
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n002  0609  21 Nov 80
 
PM-HOSTAGES
By WALTER TAYLOR
Washington Star Service
    WASHINGTON - The Carter administration Thursday declared that it has
agreed ''in principle'' to Iran's terms for release of the American
hostages, but made clear that further diplomatic maneuvering will be
necessary before release of the captives can be won.
    In a sequence of events that was confusing even by standards of the
bizarre hostage affair, first Secretary of State Edmund S. Muskie,
then the State Department in a formal written statement, said the
United States agreed, in general terms, to the four conditions Iran
has set for freeing the 52 hostages.
    The formal statement, however, was much more cautiously worded,
reasserting that any settlement with Iran would conform ''with our
Constitution and our laws'' and be ''consistent with our national
honor.''
    The second statement, U.S. officials said, was part of an effort to
offset any suggestion that a deal had been sealed with Iran and
defuse possible expectations that release of the captives was
imminent.
    As part of that same effort, State Department spokesman John H.
Trattner noted pointedly for reporters that ''you can accept the
principle of something, but the details of how you carry it out can
be very significantly different.''
    The pronouncements, nonetheless, were the first explicit U.S.
imprimatur on Iran's four demands and was consistent with the latest
administration policy toward Tehran of casting events in positive
terms.
    U.S. officials denied that the statements were intended as any
public signal to Iran or the public response that Iranian officials
have demanded. The administration earlier this month asserted that it
would not do its negotiating publicly.
    The four demands are that the United States pledge not to interfere
in the internal affairs of Iran, that about $8 billion to $12 billion
in Iranian assets frozen by President Carter after the hostage
seizure be freed, that private claims against those assets either be
dropped or absorbed by the United States and that the ''wealth'' of
the former shah of Iran and his family be seized and returned to Iran.
    Carter and other administration officials have said on numerous
occasions that the United States has no intention of involving itself
in internal Iranian affairs, and the president also has pledged to
release the Iranian assets as part of a deal for the hostages'
freedom.
    The questions of private claims against those assets and the fortune
of the late shah have never been addressed publicly by administration
spokesmen, however, and U.S. officials have said privately that they
pose severe legal and constitutional problems for the United States.
    The U.S. pronouncements Thursday confirmed statements in Algiers on
Wednesday by the speaker of the Iranian parliament, Hojatoleslam
Hashemi Rafsanjani, and Thursday by Prime Minister Mohammed Ali Rajai
that Washington had agreed ''in principle'' to the hostage demands
but that further U.S. actions would be necessary before the captives
could be freed.
    In what U.S. officials say is the more authoritative of the two
statements, Rajai told a news conference Thursday that Iran would
seek further clarification of U.S. intentions regarding the wealth of
the former shah.
    The United States officially responded to the demands in a
diplomatic note conveyed to Tehran last week by Algerian
intermediaries.
    Muskie's statement Thursday seemed to be an almost offhanded emark
when reporters saw him in the State Department and asked for comment
on Rajai's news conference.
    ''I think the way in which the Iranians have handled our proposals
is positive,'' he said. ''They have discussed it quietly. They have
discussed it privately. They have not tried to characterize it
publicly or to reject it. So they have addressed it seriously,
apparently, and are going to continue to do so.
    ''That attitude is welcome.''
    He went on to say, in response to another question, ''We have said
publicly that we accept the four points in principle....''
    However, he added, ''that doesn't tell you much about the details,
does it?''
    Muskie cautioned that his response was based on wire service
reporting of Rajai's remarks and that no formal communication had
been received from Tehran, and, thus, there was no way to predict
when the 54-week-long hostage impasse could be resolved.
    
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a088  0648  21 Nov 80
PM-Hostage 747,400
Boeing Tried to Deliver 747 to Iran, Newspaper Reports.
    EVERETT, Wash. (AP) - Boeing Co. officials met directly with Iranian
air force officers last January to negotiate the delivery of a 747
cargo jet, the Everett Herald reported.
    Court records show a key purpose of the meeting was to circumvent
any U.S. Treasury Department effort to withdraw Boeing's license to
sell the jumbojet to Iran, said a copyright report published by the
Herald on Nov. 14.
    As of Thursday, Boeing officials in Seattle said the plane was still
at Paine Field near Everett.
    Earlier, Boeing spokesman Pete Bush said he had only ''vague
knowledge'' of a meeting with Iranian military officials in London and
refused to elaborate.
    The newspaper report said the strange case of the hostage 747 began
with a March 2, 1977 contract with the regime of the late shah of
Iran for five of the jumbojets.
    After the first four were delivered, court documents reveal, a
dispute arose over payment, with Boeing claiming debts of nearly $1
million on other contracts plus $20.6 million due on the last plane,
which carried a $54 million price tag.
    The shah was overthrown in early 1979.
    On Nov. 4, 1979, 52 American hostages were seized as militant
Iranian students stormed the U.S. Embassy in Tehran.
    On Nov. 14, President Carter ordered a freeze on the $8 billion to
$11 billion of Iranian assets in the United States.
    On Nov. 22, the Parliament of the Islamic Republic of Iran
nationalized all U.S. assets in Iran.
    Still anxious to complete the sale, Boeing officials arranged a
three-day meeting with three Iranian air force officers that began
Jan. 28 in London, the newspaper said.
    Meanwhile, the disputed jet was named in court actions by three
corporations - Banker's Trust of New York, Blount Brothers
Construction Co. of Birmingham, Ala., and Dames and Moore Inc., a Los
Angeles-based consulting firm in earth sciences.
    Each filed ''attachments'' in U.S. District Court in Seattle to
prevent removal of the plane pending resolution of their claims for
millions of dollars in losses from the nationalization of U.S. assets
in Iran.
    Boeing negotiated privately with each of the companies, asking them
not to stand in the way of the jumbojet sale, but only Banker's Trust
agreed, the newspaper said.
    At the London meeting, Spencer D. Clawson, Boeing director of
government contracts, arranged a deal for Iran to pay the $20.6
million, plus an additional sum to cover other contracts, according to
the report.
    
ap-ny-11-21 0949EST
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a090  0658  21 Nov 80
PM-War Rdp Sub, a062,40
BEIRUT, Lebanon Sub 12th graf: Swedish socialist xxx Saturday to
Update
    Swedish Socialist Party leader Olof Palme, U.N. Secretary-General
Kurt Waldheim's special envoy, visited the Khuzistan war zones today,
Tehran radio reported. He was scheduled to meet with Iraqi President
Saddam Hussein in Baghdad on Saturday.
    Iranian President: 13th graf
    
ap-ny-11-21 0959EST
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a092  0708  21 Nov 80
PM-War Rdp, 1st Ld, a062,160
Eds: Updates with new details on battle, casualties, claims to drive
back enemy
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian paratroopers fought close-range
combat with helicopter-dropped Iraqi commandos today for a strategic
chain of heights along the foothills of western Iran's Zagros
Mountains.
    Tehran radio reported Iranian paratroopers were pushing the Iraqis
back in the fighting near Iran's border towns of Mehran, Gilan Gharb
and Sar-Pol-e-Zahab. It said Iranian troops had inflicted heavy
casualties and destroyed many enemy fortifications.
    A communique from the Iraqi defense command in Baghdad said its
forces drove off the attackers behind waves of bombing air force jets
and rocket-firing helicopter gunships.
    The Iraqi communique said 45 Iranian troops were killed in the
running battle for the heights this morning.
    An Iranian communique made no mention of casualties there but
claimed 60 Iranian troops were killed in mid-morning helicopter
gunship assaults on Iraqi positions around the embattled Iranian town
of Susangerd, 100 miles to the southeast.
    The three: 43rd graf
    
ap-ny-11-21 1009EST
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n025  0940  21 Nov 80
 
BC-IRAN-INTRIGUE(COX)
By SEAN TOOLAN
c. 1980 The Atlanta Constitution
     BEIRUT - In this city of confusion, plots and intrigue, one man, by
his own reckoning, stands more confused than any.
     He is a short, soft-spoken Iranian diplomat - who likes to keep a
low profile and whose main task at the moment is to convince newsmen
flocking to Beirut that he really is doing his best to get them visas
into Iran.
     He is having little success on both counts, but his confusion does
mirror the marked political changes now taking place in Iran.
     The changes are happening so fast that each morning, in answer to
questions about the U.S. hostages, he can only say: ''It will be some
time before thay are released, because although everyone in Iran
wants them out of the country, it is hard to free them and still
leave Iran with some honor.''
     By that he means Iran will probably not get all it intended in its
four conditions. He says he recognizes the legal problems the U.S.
government is encountering with at least two of the conditions - the
return of the late shah's wealth and the waiver of all U.S. civil
claims against Iran - and he says Iran's leaders suspect America will
not agree to the 52 captives being released in groups.
     But then he talks of another problem for the hostages. He continues
to receive reports of bitter political infighting in Tehran between
the dominant religious extremists, represented by the Islamic
Republican Party, and the revolutionary ''moderates'' who profess
fidelity to the Islamic republican ideals but also see no pluuast of the cleric-
al kind.
     The political simmering boiled over this past week into noisy
confrontation when 20,000 demonstrators gathered to welcome former
Foreign Minister Sadegh Ghotbzedeh, who was released from jail on
orders from Ayatollah Ruhol3r the IRP engineered his
arrest when he criticized religious domination of the state-run media.
     Khomeini is said to look upon Ghotbzedeh as a son, and when the
battle between the moderates and religious fundamentalists peaked,
the ayatollah cracked down. Later the ayatollah was reported to have
warned the demonstrators and Ghotbzedeh of the dangers of a coup if
their factional disputes with the IRP continued to split the country.
     Moslem politicians in Beirut believe that Khomeini is behaving
exactly in the traditional manner of an Islamic leader, especially a
grand ayatollah. They say he juggles the balance of power and moves
in when one group, any group, is moving too fast by simply supporting
their opposition, at least for a time.
     Observers here, including the Iranian diplomat, believe the recent
confrontations may mean that Ghotbzedeh, supported by President
Abolhassan Bani-Sadr, another moderate, may quietly amass enough
influence to start dictating terms to the religious elements.
     Bani-Sadr, particularly, is in a good position to build support -
by spending his days at the front line, directing Iran's defense of
her border towns in the war with Iraq. He is apparently well-liked by
Iran's fighting men, including the religious Revolutionary Guards.
     The army reportedly feels isolated from the decision making in
Iran, and hostility is said to be building up toward the Tehran
government because some army and air force officers feel -
unrealistically or not - if only Iran would release the American
hostages immediately, the United States would respond with military
supplies to help Iran beat back the Iraqis.
    Distributed by The N.Y. Times News Service
    
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n049  1314  21 Nov 80
 
AM-IRAQ
Gulf War Emphasis Shifts Northward
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    BEIRUT - The focus of the Gulf war shifted northward Friday when
Iraqi jets bombed a strategic dam in Iran's mountanous Kurdistan
province.
    The Iraqi planes pounded a number of sites in the steep hills and
valleys of the Kurdish section of northwestern Iran around the town
of Arbil. They struck at a major dam at Dokan on the Zab River, a
tributary of the Tigris.
    But, for the second day in a row, the Iraqi military communique -
which invariably strikes an optimistic note and speaks of more
victories - made no mention whatsoever of the Iranian town of
Susangird, the site this week of-week old conflict.
    The Iranian state radio said the Iraqi forces were dug in about one
mile west of Susangird and were attempting to hit the city with
artillery fire. The Iranians claim to have retaken the city early in
the week and to have driven back an Iraqi counter-attack with
hundreds of casualties on both sides.
    Iraqi helicopter gunships also attacked the Iranian town of Gilan,
about 25 miles inside the border, the official Iraqi news agency
said. It was the seventh air attack on the area in the past two days.
    In Iran, United Nations special envoy Olof Palme, whose mediation
efforts appear to have been rebuffed, was taken on a tour of the
battered city of Dezful in Khuzistan province, still under siege by
the Iraqis.
    Palme was greeted by crowds shouting ''death to (Iraqi President)
Saddam Hussein,'' and was shown buildings flattened by the Iraqi
bombardment, which has included the use of huge Soviet-made Frog
ground to ground missiles.
    In Tehran, the Friday prayer leader echoed the call of Iranian
leaders for the overthrow of Hussein.
    The superpowers, he told the crowd, ''know that if a regime that
relies on God is established in Iraq, there will be a strong
anti-Israeli front in the area and the king of Jordan will not be
able to continue.''
     After the services, a crowd of about 5,000 marched to the captured
American embassy for a funeral service for one of the student
militants who had been killed in the border fighting.
    Meanwhile, the official Tehran radio said that Iran had resumed
loading crude oil at its key offshore facility at Kharg Island, badly
damaged in the first days of the war. The radio said an 80,000 ton
East German freighter had been loaded earlier in the week.
    
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a258  1443  21 Nov 80
AM-War Rdp, Bjt,460
Battle Over Susangerd Appears To Have Fizzled
By ALEX EFTY
Associated Press Writer
    BAGHDAD, Iraq (AP) - A major Iraqi attack to capture the key Iranian
town of Susangerd appeared to have fizzled Friday after seven days of
some of the fiercest fighting of the 2-month-old war.
    Iran claimed it forced Iraqis to retreat from positions farther
north on the 300-mile-long warfront as the two nations battled for
control of the heights that command the main highway routes to
Baghdad, the Iraqi capital.
    Baghdad and Tehran claimed a total of 195 soldiers killed in
overnight and Friday fighting along the battle front. Iran has claimed
1,700 Iraqi deaths in its week-long counter-attacks; Iraq has claimed
killing 1,071 Iranians.
    Military observers in Baghdad believe Iraq launched its attack on
Susangerd before the heavy winter rains make the use of armor
difficult in the semi-desert and marshy terrain of the region.
    Susangerd, 22 miles inside Iran, controls the strategic bridge
across the rain-swollen Kharkeh River. It is the main obstacle to an
Iraqi advance to reach Ahwaz, the capital of the oil-producing
Khuzistan province 30 miles deeper into Iran.
    Fighting continued at the northern and eastern approaches to the
Iranian oil refining city of Abadan, at the head of the 120-mile-long
Shatt al-Arab estuary that divides the two countries and Iraq's only
outlet into the Persian Gulf.
    Iraq has said it will not withdraw from the 8,000-square-mile area
of Khuzistan it has occupied unless Iran recognizes Iraqi claims to
full sovereignty over the waterway and other border territory.
    Tehran Radio said former Swedish Prime Minister Olof Palme, on a
peace mission for the United Nations, was shown damage caused by Iraqi
bombardment of Kermanshah, 50 miles east of the embattled hill area.
The radio said residents showed Palme how they dug their dead from
the rubble with their bare hands.
    A U.N. spokesman in New York, Rudolf Stajduhar, said Palme also
visited the war-torn Iranian city of Dezful. The spokesman said Palme
''stated that witnessing human suffering and material damage had
reinforced his conviction about the need to end the war.''
    Palme arrived in Tehran on Tuesday on a mission to explore
possibilities for peace between the two countries.
    Stajduhar said Palme would leave Tehran on Saturday for Amman,
Jordan to meet Iraqi Foreign Minister Saddoun Hammadi, ''who is
attending a meeting in that city.'' He said Palme then would go to
Baghdad.
    Iranian President Abolhassan Bani-Sadr reportedly told Palme that
Iran would not discuss a cease-fire until Iraqi troops evacuated Iran.
    The American television network ABC reported Thursday that Saudi
Arabia was allowing war supplies to be trucked from its Red Sea ports
to Iraq by way of Jordan, raising fears of Iranian retaliation.
    Beirut newspapers quoted reliable sources in Baghdad as saying Iraq
would get four of the 60 Mirage F-1 jets on order from France in the
next four days. The F-1 is France's most sophisticated fighter jet.
    
ap-ny-11-21 1744EST
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n078  1719  21 Nov 80
 
AM-IRAQ 1sLd-Writethru a049
Iranian Jets Attack Kurdish Area Of Northern Iraq
c.1980 N.Y. Times News Service
    BEIRUT, Lebanon - Iranian jets attacked a major dam and several
villages in the mountainous Kurdish area of northern Iraq, Friday.
    The raids were reported by the Iraqi command, but it did not say
whether there was any damage to the Dokan Dam, which holds back a
vast reservoir of water from the Little Zab, a tributary of the
Tigris River. The villages are around the Kurdish center of Erbil.
    Iran has been attacking Iraq's Kurdish areas repeatedly for the last
few weeks, leading to speculation that it might be trying to create
trouble for the government of President Saddam Hussein among the
Kurds, who, like Kurds in Iran, have long campaigned for autonomy.
    Iraqi communiques said little about Iraqi military actions during
the day, but Iran continued to speak of successes, the most notable
being a report by the Tehran radio that the Iranian oil terminal at
Kharg Island was again in use.
    The radio said Iran had resumed loading crude oil at the island,
which reportedly was badly damaged by Iraqi air strikes at the end of
September and closed. The broadcast said that an 80,000-ton East
German freighter had been loaded there this week.
    A report from Turkey Thursday said that Iraq had resumed pumping
some oil through its pipeline from the northern oilfields in the
Kirkuk area to Turkey's Mediterranean coast.
    (A diplomatic source in Washington said that information available
to him indicated that small amounts of oil had been shipped from
Kharg Island last month. He said larger amounts were being shipped by
Iran fairly regularly from Lavan Island, which is off southern Iran
far from the battlefronts and opposite Bahrain. He said the oilfields
feeding Lavan produced about 100,000 barrels a day.)
    Before the border conflict expanded into widescale hostilities on
Sept. 22, Iran was producing about 1.5 million barrels a day and
exporting about 500,000.
    Iraq's prewar oil shipments were about 3.7 million barrels a day.
The capacity of the pipeline to Turkey is estimated at 500,000
barrels a day. Iraq is said to have only 7 million to 11 million
barrels available for current exports.
    Iraqi communiques Friday reported renewed air strikes against the
Iranian town of Gilan north of the Khuzistan oil province. They were
silent about the situation around the Khuzistan town of Susangird,
which Iraqi troops reportedly entered last weekend. Iran said Friday
that Iraqis were dug in a mile outside Susangird and were bombarding
it with artillery.
    Meanwhile, the United Nations envoy, Olof Palme of Sweden, whose
mediation effort has apparently been rebuffed by Iran, was taken on a
tour of the battered Khuzistan city of Dizful and of Kermanshah.
    
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n093  1927  21 Nov 80
 
AM-ARABS
Arab League Remains Divided Over Summit Meeting
By PRANAY B. GUPTE
c. 1980 N.Y. Times News Service
    AMMAN, Jordan - Syria called on other Arab nations Friday night to
agree to a postponement of the Arab League summit meeting scheduled
for next week and proposed that the Arab leaders instead hold several
smaller meetings to discuss their problems.
    But Iraq rejected the Syrian proposal and reaffirmed its support for
holding the meeting here as scheduled next Tuesday. Foreign Minister
Saadun Hamadi of Iraq said that the Syrian suggestion, which was made
at a meeting of Arab foreign ministers, was ''not the right
approach.''
    ''We are for holding this summit exactly on time because we believe
that Arab summits are an institution that must be held regularly and
at a fixed time every year regardless of whether there are
differences among member states or not,'' Hamadi said as the foreign
ministers adjourned their meeting Friday night.
    ''If there are differences, they should not interfere in the holding
of annual Arab summits,'' he said. ''On the contrary, these meetings
should be an occasion and means for discussion and for resolving Arab
differences.''
    Hamadi and some other delegates said they were confident the
conference of the 21-member Arab League would be held as planned.
    But Farouk Kaddoumi, the chief foreign policy spokesman of the
Palestine Liberation Organization, said it was his ''impression that
everybody at the ministers' conference is receptive'' to the Syrian
proposal for smaller meetings.
    ''I hope the summit is held at only the exact time suitable, the
time which will serve the interests of the Arab people,'' Kaddoumi
said. ''If it is possible to liquidate the differences among Arabs,
then a summit is possible at any time. But the differences now and
views are such that we need more time.''
    But both Hamadi and Najef Mawla, the Jordanian who is acting as the
spokesman for the foreign ministers, said there did not appear to be
widespread support for the Syrian proposal, which was made by Foreign
Minister Abdel Halim Khaddam Friday.
    Nevertheless, uncertainty seemed to persist in conference circles
Friday night over whether Syria would succeed in obtaining a
postponement. The Syrian position is that in light of deteriorating
relations among key Arab countries, such as itself and Iraq, the Arab
League would be unable to achieve major objectives at the meeting.
    Iraq is waging a war with Iran, which Syria supports, and says the
summit must be held on time for the sake of Arab unity. Iraq's
position has been endorsed by Saudi Arabia and Jordan.
    The Syrian strategy was apparently worked out a couple of days ago
in Damascus at meetings between Syrian officials and representatives
of Algeria, Southern Yemen, Libya and the PLO.
    Syria has sought discussion of the Iran-Iraq war at the meeting of
the foreign ministers in its effort to show that Moslem Iraq was
fighting another Moslem country to enhance the personal power of
President Saddam Hussein. The Syrians say the war is diverting the
energies of the Arab world from its true battle, the confrontation
with Israel.
    Iraq's aims in wanting the summit meeting to be held on schedule
include obtaining broad Arab support for its war effort. So far only
Jordan has openly supported Iraq, although Kuwait and Saudi Arabia
have offered tacit backing for Baghdad. The Saudis have been reported
allowing the Iraqis to use three ports through which arms are
apparently being channeled to Baghdad.
    Iraq also wants to isolate Syria politically in the Arab League and
to highlight the fact that the government of President Hafez al-Assad
is supporting a non-Arab nation, Iran.
    
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n099  2020  21 Nov 80
 
BC-PEOPLE-IN-THE-NEWS Undated
c. 1980 N.Y. Times News Service
    Ever since 1948, Lester Lanin has been appearing with his orchestra
at the New York Junior League Debutante Ball, and this year he will
be back when the Deb Ball is held Thanksgiving Eve at the Plaza Hotel.
    At the Deb Ball, Lanin always plays ''Pink Petal Waltz,'' which he
wrote for the event 32 years ago. This Thanksgiving, though, he has a
little surprise for the frolickers.
    ''I'm bringing back the turkey trot this time,'' Lanin said Friday.
''It's an upbeat, lively dance that had its heyday in ballrooms a
half-century ago, at the same time as the Charleston and the black
bottom. I wouldn't be surprised if the turkey trot enjoys renewed
popularity.''
    Lanin was in a good mood, anticipating, he said, that he will be
asked to appear at the Ronald Reagan inaugural ball. ''I've already
written a song in Reagan's honor,'' he said. ''It's called 'A
Wonderful Day is a-Comin' for the Wonderful U.S.A.' ''
    
New York Hospital officials were being otherwise tight-lipped about
it, but Friday they confirmed that Princess Ashraf Pahlevi, the
60-year-old twin sister of the late former Shah of Iran, was admitted
to the hospital early Thursday as an emergency patient, and has been
released.
    Officials at the hospital, the same hospital where the shah
underwent cancer treatment and gallbladder surgery for several weeks,
said the outspoken princess was brought to the emergency room
''during the early morning hours by means other than an ambulance''
and was released Friday afternoon.
    The hospital officials refused to disclose why she required
emergency care. The exiled princess lives in a duplex apartment on
Park Avenue.
    
The governor of Virginia, John Dalton, was particularly glad to see
Chief Thundercloud and Chief Little Eagle, of the Mattaponi Indian
tribe, when they came to Richmond to pay the tribe's annual taxes.
    ''I went hunting three afternoons last week, and I didn't see a
turkey,'' said Dalton.
    ''Well, you've got one now,'' said Chief Little Eagle, as he turned
over to Dalton a large turkey and eight fish, fastened on a crude
wooden post.
    The fish and fowl served this week as the Mattaponis' 322d annual
tax ''offering'' to Virginia's chief executive, in return for the
tribe's 125-acre reservation in King William County.
    There are only 77 tribe members living on the wooded reservation,
but Chief Little Eagle said, ''There's nowhere for our young people
to spread out, and they've got to leave the reservation.''
    However, he told Dalton on Wednesday, the Mattaponis are not
contemplating suing for their former lands, as some tribes have in
other parts of the country. They prefer to continue friendly talks.
    ''You get more flies with honey than with vinegar,'' he said.
    
It was no secret, when Lyndon B. Johnson was president, that he was
resentful of what he perceived as an overabundance of Ivy League
college graduates in high-level government posts.
    Now his widow, Lady Bird Johnson, says that Johnson was constantly
disappointed that graduates of schools in his own region, the
Southwest, were only infrequently recommended for key government
positions.
    ''When he was looking for somebody to serve in a Cabinet post or as
head of a government agency, and he would ask the staff to recommend
three or four people, they always came up with people who were
graduates of Harvard, Yale or Princeton, or of a small nucleus of
schools on the far West Coast,'' Mrs. Johnson said in an interview
for the December issue of American Heritage magazine.
    ''The whole Southland, the whole Middle West, the whole Southwest
was sparsely represented, and the Lord didn't pass out brains that
unevenly. But people got a better preparation at some of those
schools, so to start a school that could hopefully offer
opportunities to students of this region, that had a lot of appeal
for Lyndon.''
    That was a major ''selling point'' with her husband, Mrs. Johnson
said, for putting the Johnson Library at the University of Texas
instead of Johnson's alma mater, Southwest Texas University. The
university, in Austin, had proposed to start a School of Public
Affairs.
    
They are among the top male box office movie stars, men who can pick
and choose their roles and dictate the terms of their film deals, but
Paul Newman, Clint Eastwood and Burt Reynolds all admit they have
limitations as actors. In fact, all three have turned to second
careers as directors, perhaps foreseeing a time when their acting
days are over.
    In interviews for a Barbara Walters special, to be seen on ABC-TV
Dec. 2, the three stars discussed their careers and limitations, and
Newman confessed that he's getting bored with acting.
    Admitting that he is ''a limited actor,'' Newman said, ''I've tried
to do classical parts and I have come away from them whipped.''
    Eastwood was equally self-effacing. ''In certain roles I think I'm a
good actor,'' he said. ''I think there are other roles I can't play.''
    As for Reynolds, he said that he can't forget ''how lousy, how bad''
he was as a young actor, and he said, ''I was a combination of Marlon
Brando and Yvonne De Carlo.''
    
ny-1121 2321est
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a007  2158  21 Nov 80
PM-Names,510
Names in the News
Laserphoto NY14
    LONDON (AP) - Jacqueline du Pre, the gifted cellist whose performing
career ended seven years ago when she was stricken with multiple
sclerosis, has been named Britain's Musician of the Year.
    The annual award from the Incorporated Society of Musicians was
presented Friday to the wheelchair-bound Miss du Pre, 35, by Lady
Barbirolli, president of the society and widow of the great British
conductor Sir John Barbirolli.
    It was awarded in recognition of the cellist's contribution to
British music and her ''brave and effective return to the music
scene'' as a teacher.
    Miss du Pre, wife of Israeli conductor-pianist Daniel Barenboim,
recently returned to the concert stage to take the narrator's part in
Prokofiev's ''Peter and the Wolf.''
    ---
    NEW YORK (AP) - A 22-year-old Canadian who ran more than 3,000 miles
across Canada despite the loss of one leg to bone cancer has been
given the American Cancer Society's ''Sword of Hope Award.''
    Terry Fox, from Port Coquitlam in British Columbia, raised more than
$12.5 million for the Canadian Cancer Society by making the run,
which lasted from April through September. He has an artificial leg.
    He had intended to run from St. John's, Newfoundland, to Vancouver,
B.C., but he became ill at the halfway point - 3,339 miles - in
Thunderbay, Ont., and had to quit. He was rushed home for
chemotherapy.
    The American Cancer Society presented the ''Sword'' award Thursday
night in New York, but Fox, who was hospitalized, was not able to
attend.
    ---
    WASHINGTON (AP) - Republican Sen. Charles Percy, who stands to
become chairman of the Senate Foreign Relations Committee in the new
Congress, is heading for Moscow for meetings with Soviet leaders.
    Percy, who represents Illinois, was to leave today, travel in Russia
in the first part of next week and hold the meetings late in the
week, his office announced Friday.
    Percy said at a news conference Wednesday he will assure Soviet
leaders that if they and President-elect Ronald Reagan can negotiate a
new SALT agreement, the Senate would ratify it.
    Reagan, during the campaign, said he would seek to renegotiate the
Strategic Arms Limitation Treaty initialed by President Carter
because, he contended, it gave the Soviets a military advantage.
    The Senate has not ratified the treaty.
    ---
    NEW YORK (AP) - The 60-year-old twin sister of the late, deposed
shah of Iran was admitted briefly to New York Hospital this week,
hospital officials confirm.
    Princess Ashraf Pahlavi entered the hospital early Thursday as an
emergency patient, the hospital confirmed. She was released Friday,
the hospital said.
    Hospital officials refused to say what was the matter with the
princess, who lives in a Park Avenue apartment.
    The shah was treated at New York Hospital for cancer and gallbladder
surgery for several weeks after he was deposed.
    
ap-ny-11-22 0059EST
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a044  0322  22 Nov 80
PM-War Rdp,580
Iraq Launches Missile Attack
Laserphoto TOK1
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq reportedly stepped up the battle on the
northern front today with a missile attack on the Iranian town of
Gilan Gharb, and U.N. peace envoy Olof Palme left Tehran for talks
with the Iraqis after being told by the Iranians his mediation efforts
were a ''waste of time.''
    Iran said the Iraqis launched Soviet-made, ground-to-ground missiles
at residential sections of Gilan Gharb, escalating a running battle
for the heights that command the main highway routes to Baghdad from
Iran's western border. It was unclear if there were any casualties in
the attack on the town, 20 miles east of the Iraqi border.
    It was the third time Iran has accused Iraq of using
surface-to-surface missiles since the war between the two Persian Gulf
oil states erupted 62 days ago. The previous two attacks by
''Frog-7'' missiles claimed 255 Iranian lives in the southwestern army
garrison town of Dezful in October, Iran says.
    Iraq said its air force and helicopter gunships struck at enemy
positions throughout the northern sector of the 300-mile war front,
where Iranian paratroopers have been trying to wrest the strategic
heights and three other Iranian border towns from the Iraqis.
    Iran claimed a total of 1,700 Iraqis killed in its week-old
counter-offensive on all fronts, and Iraq claimed 1,071 Iranians
killed.
    As the war moved into its third month, Palme, a former Swedish prime
minister, set out on the second leg of a peace-making effort already
scuttled by Iran.
    During a meeting with Palme in Tehran this morning, Iranian Prime
Minister Mohammad Ali Rajai accused the United Nations of hypocrisy,
dismissed Palme's reconciliation efforts and demanded anew that Iraqi
President Saddam Hussein be tried before an international court,
Iran's official Pars news agency said.
    Rajai asked Palme why ''freedom-seeking organizations ... made such
an uproar in the (52 American) hostages' defense'' but remained
silent about alleged Iraqi war atrocities, Pars said.
    ''The nation then asks me what is the point of these comings and
goings (peace missions) and these sessions which are only a waste of
time, which only seem to justify these (Iraqi) killings,'' Pars quoted
Rajai as saying.
    Earlier peace-making efforts by Arab and non-aligned nations and by
the Palestine Liberation Organization also failed.
    Both Rajai and President Abolhassan Bani-Sadr announced after their
first meetings with Palme on Thursday that Iran would consider a
cease-fire only when Iraqi troops leave all territory in western and
southwestern Iran.
    Palme, personal representative of U.N. Secretary-General Kurt
Waldheim, is due in Amman, Jordan, later today for talks with Iraqi
Foreign Minister Saadoun Hammadeh, who is attending a conference of
Arab foreign ministers. Palme then drives to Baghdad, the Iraqi
capital, to confer with the Iraqi president.
    Meanwhile, the loss of oil from the two warring l¬tions has pushed
up the spot market price and tightened international supplies, oil
industry sources said here Friday. But they added that both countries
had resumed exports on a limited scale.
    The Sources said Iraq was pumping oil through its 700,000
barrel-a-day capacity pipeline to Turkey. But the amount of oil being
exported is believed to be well below the pipeline's capacity.
    Iran is exporting about 150,000 barrels a day through its Lavan
Island facility in the Gulf, the sources said.
    Before the war, Iraq was exporting about 3.2 million barrels a day,
and Iran was exporting about 500,000 barrels.
    
ap-ny-11-22 0623EST
**********

n545  0344  22 Nov 80
 
BC-TRADE-11-20
    By Jerry C. Davis
    (c) 1980 Chicago Sun-Times (Field News Service)
     CHICAGO-The Middle East remains the most vital area for
international trade despite the Iran-Iraq war, which has caused
shippers to reconsider their commitments there, representatives of a
big shipping company told business leaders here.
     ''If you want to stop the world and get off, you can forget the
Middle East,'' said Wilhelm Wilhelmsen, chairman of Barber Blue Sea,
a Norwegian-Swedish-British shipping consortium. ''Otherwise,
shippers have to get used to crisis there because that's a way of
life in the Middle East.''
     Barber Blue Sea is expecting continued export growth from the
Midwest to the Middle East and Southeast Asia, BBS executive vice
president Raymond Miles said.
    ''Exports in this country represent only 7 percent of the gross
national product, compared with 25 to 40 percent for European
countries,'' he said. ''There is a tremendous potential to increase
U.S. exports to the European levels, and if there is going to be an
export drive by the United States, it must come in the main from the
Midwest.''
    Miles described the Middle East market as ''fantastic because the
OPEC billions are being spent for development, and the only place
they can get goods is overseas. Yet, the U.S. share of these imports
has been declining. The huge industrial capacity in the Midwest
presents great export potential to take advantage of this market.''
    U.S. products now are ''cheap for foreign buyers,'' Miles said.
''Also, the cost of shipping from the United States has actually
fallen in the last five years. Freight rates have increased by less
than two-thirds of the inflation rate.''
    ''The Middle Eastern countries have to import everything, so all
U.S. products can be sold there,'' said Erik Waage-Nielsen, the
company's president. ''Agricultural and construction machinery,
foodstuffs and consumer durables are all products that Midwest
companies make that the Middle East needs.''
    Barber Blue Sea expects to be ''the last shipper out and the first
one back in if the Iran-Iraqi war finally forces a halt to shipping
to that area,'' Wilhelmsen said.
    ''Our supercarrier fleet was built with the U.S.-Middle Eastern
market in mind,'' he said. ''With over $400 million invested, we are
committed to this trade. So far, the company has not found it
necessary to alter its schedule, though trade with Iran and Iraw has
been curtailed.
    ''Should an unusual contingency occur, such as a closure of the Suez
Canal or the Strait of Hormuz, BBS could rely on several
alternatives-rerouting its carriers around the Cape of Good Hope or
taking various overland routes, for example. As long as trade
continues in sufficient volume, BBS will provide service.''
    ENDIT DAVIS
    
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a046  0357  22 Nov 80
PM-Iran-Hostages,330
URGENT
Iran Says U.S. Response On Hostages Was Unclear
    BEIRUT, Lebanon (AP) - Iranian Prime Minister Mohammad Ali Rajai's
office said today that the American response to Iran's terms for the
release of the 52 American hostages ''was neither explict nor clear,''
the official Pars news agency reported.
    An unidentified spokesman was quoted as saying the U.S. government
''presumes in modifying'' the terms for release set by the Iranian
Majlis, or Parliament, on Nov. 2.
    The agency said Iran had asked the Algerian government, which is
acting as the go-between in the hostage negotiations, to ask the
United States ''to clearly announce its positive or negative response
to the Majlis document.''
    The prime minister's office said Iran ''has not give any response,
either positive or negative, to the United States on this subject,''
Pars said.
    ''The U.S. reply was neither explict nor clear regarding the
document ratified by the Majlis,'' Pars quoted the spokesman as
saying. ''In some cases not only had a direct reply not been made but
additional proposals had been offered.
    ''Since the government of the Islamic Republic of Iran considers
itself to be the only executor of the Majlis decisions, the United
States presumes (is presumptuous) in modifying this document,'' the
Pars report said.
    Iran's latest comment came on the 385th day of the hostages'
captivity.
    The United States sent its reply to Iran's conditions to Tehran via
Algeria last week.
    The reply was not made public, but on Thursday Secretary of State
Edmund S. Muskie said the United States had accepted Iran's four
points in principle. However, the Pars report indicated the United
States had not met all of Iran's conditions.
    Iran has demanded the release of the estimated $8 billion in Iranian
assets frozen in the United States; withdrawal of pending lawsuits
against Iran; a U.S. pledge of non-interference in Iranian affairs and
return of the wealth of the late Shah Mohammad Reza Pahlavi and his
family.
    
ap-ny-11-22 0658EST
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n011  0725  22 Nov 80
 
BC-SOTHEBY Addatend
NYT LONDON: should go.''
    Peter Spira, the group finance director, is perhaps the most
influential executive after the chairman. Following the decade of
dramatic expansion he is consolidating and tightening for what will
be a difficult period.
    ''In Switzerland, where a large proportion of sales are jewels,
we've moved to Geneva because there aren't major dealers in Zurich,''
he said, speaking of cutting overhead costs. ''The U.S. is a major
area of growth. Sales have gone from $112 million to $250 million in
three years. But we have no plans for more auction houses there.''
    Its salesmanship lags only slightly behind its showmanship. Peter
Wilson was a superb publicist and the company subtly orchestrated its
sales to attract the greatest possible public attention. But the
result has at times backfired. Clients are visibly nervous and
irritated by the hoards of photographers and television crews that
now attend the large sales.
    Often the company will not supply information, particularly when
sellers and buyers wish to remain anonymous, resulting in the sort of
rumor and its consequences seen at its recent Geneva jewelry sale.
The jewels were rumored by the French daily Le Figaro to belong to
Empress Farah, so the proceeds from the sale were blocked by the
Swiss government for possible repatriation to Iran.
    Auction houses make money by charging both seller and buyer a 10
percent commission on the sale price. Until a few years ago, only
sellers paid, and when Sotheby's and Christie's inaugurated the
buyer's commission, irate British dealers sued them for unfair
trading practices, a case which comes to trial this fall.
    Competition between Sotheby's and Christie's, and the dealers
themselves, is so keen that the auction house sometimes reduces its
commission to obtain a fine collection. ''Worldwide competition is
much greater,'' Lord Westmorland acknowledged, ''but it's generated
more interest in the auction scene.'' Sotheby's oustrips its rival in
auction sales by more than $200 million, but in the profit category,
Christie's had a 25 percent profit margin in 1979, compared with
Sotheby's margin of 4.4 percent.
    Sotheby's is now looking to its local branch salerooms for a greater
share of profits. ''The first criterion for sales is where can the
vendor get the highest price,'' Lord Westmorland explained. ''Today
the tendency is to sell things in the country of origin. For
furniture, the cost of transport is primary. The exception is jewels
- they're transportable and Switzerland is still the place.''
    Recently Sotheby opened a saleroom in Chester in northern England.
''Chester has the highest per capita income in the U.K.,'' Spira
noted. ''Now we have three regional salerooms here. A lot of people
like to deal locally.''
    Rome is another new location. ''We have three offices in Italy and
had a very successful sale last month,'' Spira continued. ''Political
nervousness is good for business.'' Sotheby's is considering
Frankfurt as a location for furniture sales.
    In Japan, it has begun a new venture with the Seibu Group of
department stores. ''We have three offices in their Tokyo stores,''
Spira said. ''The Japanese can go in, leave bids or objects in their
own language.'' Sotheby's will not open a salesroom there because
public auctions are not in the Japanese tradition. ''Christie's got
burned by doing this, while we earned brownie points by not,'' Spira
added.
    One of Sotheby's intriguing areas of expansion is Sotheby's
International Realty Corp., begun in 1976. Last year the fledgling
subsidiary opened offices in Beverly Hills and Washington, D.C.,
offering such bargains as a simple two-bedroom ranch house in
Southern California for $12.5 million and a movie tycoon's 35-room
extravaganza, complete with projection room and elevator, for $15
million.
    ''We sold the property immediately, complete with a Rolls-Royce in
the driveway,'' said Edward Lee Cave, the head of the real estates
unit. ''We expect to do more than $100 million for next year,'' Cave
predicted, and within five years we might outstrip art sales.''
    For the coming year, the auction house hopes to have three important
sales: one in New York, one in Monte Carlo and one in London.
    To help nail these down, the new chairman is now traveling
constantly, visiting branch offices and discreetly ferreting out
potential collections.
    For the latter task, connections are everything and the Earl of
Westmorland is surely well-placed. ''The real point of my job,'' he
concluded, ''is to encourage the right people to bring their works to
Sotheby's.''
    
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n026  1004  22 Nov 80
 
BC-IRAQ-OIL
(Financial)
By PRANAY B. GUPTE
c. 1980 N.Y. Times News Service
    BAGHDAD, Iraq - By the time the war with Iran broke out two months
ago, Iraq had claimed second place among the world's oil exporters,
boasting 80 billion barrels of reserves and a production rate of 3.2
million barrels a day. Oil fueled extraordinary economic development,
giving Iraq an annual real growth rate of 3.4 percent, one of the
highest in the world.
    Then, shipments abruptly dried up. Iranian missile attacks inflicted
heavy damage on the southern Iraqi port of Basra, according to
Western analysts, from which 60 percent of Iraq's exports are
shipped. One of its two major pipelines, a 500,000- to
600,000-barrel-a-day line running from the huge Kirkuk field through
Turkey to the Mediterranean, was also damaged. The other major line,
with a 400,000-barrel-a-day capacity, runs through Syria, which has
been siding with Iran during the war.
    But last Thursday, war or no war, came the word that shipments
through Turkey were resuming. No official announcement was made, for
fear of sabotage, but the official line had been pronounced before:
    ''We are studying the resumption of oil production for export,''
President Saddam Hussein said recently. ''When the crude starts to
flow through the pipelines again, you will recognize what it is.''
    To a world facing possible shortages in the not-too-distant future,
it was a welcome stance. Iraq, after all, has no pressing need to
resume exports, and has in the past been something of an enigma -
following some bitter dealings with the Western interests that once
developed its oil industry and now are its major customers.
    And if exports of crude are resumed in any volume, product shipments
may not be very far behind. Iraq's refinery capacity currently is
about 320,000 barrels a day in seven refineries, including two at
Kirkuk and Mosul, also in Northern Iraq, that are believed to be
fully capable of meeting domestic needs. (Unlike the case in Iran,
there have been no fuel shortages in Iraq since the outbreak of war.)
    Iranian air raids have damaged several petrochemical complexes,
particularly in the south, but Western analysts here believe that
initial reports of widespread devastation were overstated. ''Unless
there is further damage to these installations, the general feeling
is that most petrochemical projects should be revived within six to
12 months,'' said one European diplomat whose country has supplied
technical advice for several of the complexes.
    The existence of oil in Iraq has been known since Biblical times -
the ''fiery furnaces'' - and production from such huge fields as
Kirkuk and Rumaila has sustained the country from the first quarter
of this century.
    After World War I, a consortium was set up linking British, French,
Dutch and American interests, plus the Armenian promotor, C.S.
Gulbenkian. However, the Iraq Petroleum Co., for various political
and geographical reasons, concentrated on Saudi Arabia, which with
170 billion barrels of reserves is by far the world's largest
exporter, Kuwait and Iran. Iraq's share of the total Middle East
crude oil production fell from more than 20 percent in 1955 to less
than 10 percent in 1970.
    In 1972, Hussein, then vice president, nationalized the British
share of IPC and in the following three years, took over the rest.
Since then, the Iraqis have insured that no one group of foreign
interests dominates the oil technology business here. The Iraqi
Ministry of Oil and the Iraqi National Oil Co. are engaged in the
full range of the petroleum sector's activities - from exploration
and drilling to production, transportation and refining of both oil
and natural gas.
    Exploration and technical assistance contracts have been given
variously to groups from the Soviet Union, France and Brazil. Iraqi
officials oversee their efforts and penalties for such violations as
bribery and corruption are severe.
    As a result of intensive Iraqi-controlled development, production
almost tripled, from the 1.2 million barrels daily produced in 1972,
the first year of the nationalization effort. Last year, oil revenues
were $20 billion; this year, despite the disruption in exports, the
figure is expected to climb to $26 billion, perhaps even $30 billion,
because of higher prices.
    Those revenues far exceed Iraq's current development and expenditure
needs, and Iraq has accumulated more than $40 billion in reserves,
and with them, Iraq could satisfy the needs of its 14 million people
for at least two years without pumping a drop of oil, Western
analysts say.
    But Iraq is pushing for a larger role in international
policy-setting, based on oil power that was greatly enhanced as
Iranian exports shrank from 7 million barrels a day under the shah to
less than 1 million.
     Hussein has said that future exports would not necessarily be
delivered on the basis of existing contracts but rather on the basis
of specific need and the degree of support given to Iraq in the
current war. Iraq's major prewar customers were France, reportedly to
be the recipient of the first crude pumped through Turkey, as well as
Japan, Yugoslavia, Spain, Italy and Brazil.
    That the Iraqis have the power base to become a major power is not
in doubt. According to Oil Minister Tayih Abdul Karim, Iraq's oil
production capacity is 4 million barrels a day. With the development
of five new fields - including the 7 billion-barrel Majnoon field -
Iraq should be able to produce 6 million barrels a day by 1985.
    
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a230  1200  22 Nov 80
AM-Congress-Energy, Bjt,500
New Congress Leans Toward Free Market for Energy
By TOM RAUM
Associated Press Writer
    WASHINGTON (AP) - Breeder reactors are making a comeback. Oil and
gas price controls are on their way out. Drilling on federal lands and
on the Outer Continental Shelf is in. And gasoline rationing? Don't
even think about it.
    That's how the energy legislation picture is shaping up as
President-elect Ronald Reagan prepares to take office and Republicans
get ready to take over the Senate in January.
    The new, heavily conservative 97th Congress is likely to be far more
oriented toward energy production than its predecessor and far less
sympathetic to legislation designed to force conservation.
    ''We will tend toward those programs that recognize that the
government doesn't produce energy and isn't a very good program
director,'' said Sen. James A. McClure, R-Idaho, who takes over from
Sen. Henry M. Jackson, D-Wash., as chairman of the Senate Energy
Committee in January. ''We will reduce the controls. We will tend
toward a freer market.''
    Reagan is likely to have an easier time getting his energy bills
through Congress than did President Carter.
    Some of Carter's major energy initiatives - including a proposed
50-cent-a-gallon tax on excess gasoline consumption in 1977 and a
trimmed-down 10-cent-a-gallon version in 1980 - were overwhelmingly
repudiated on Capitol Hill.
    But the energy dilemmas that haunted Carter's four years will
confront Ronald Reagan as well - many in the first year of his term.
    One important reason is that the basic law governing petroleum
prices and distribution and giving the president power to deal with
energy shortages - the Energy Production and Conservation Act -
expires in mid-1981.
    Without the law, the ability of a president to manage a serious oil
and gasoline shortage would be sharply limited - just around the time
that severe shortages stemming from the Iran-Iraq war might begin to
develop, if that conflict persists.
    And even though Reagan and Republican congressional candidates
campaigned for deregulation, it is doubtful they would allow all
controls to expire.
    Many oil companies, for instance, would like to see some form of
renewal of the rules for government allocation of fuel in a severe
shortage. And small refining companies are sure to ask for some
continuation of the controls that put them on a more competitive
footing with the major companies in bidding for crude oil.
    ''The irony is that this anti-regulatory crowd that is taking over
may come to town and find it's the oil companies who are asking for
protection,'' said a Democratic staff member of the Energy Committee
who asked not to be identified.
    Even McClure says he expects a renewal of some energy controls when
they all expire next Sept. 30.
    But he adds that the current standby rationing plan - which took two
years of stormy negotiations between the Carter White House and
Congress to draft - will almost surely be junked in favor of one with
a higher ''trigger'' than the 20 percent shortage required to set the
current plan in motion.
    
ap-ny-11-22 1501EST
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n040  1217  22 Nov 80
 
BC-AFGHAN
By DREW MIDDLETON
c.1980 N.Y. Times News Service
    NEW YORK - The military position of the Afghan insurgents fighting
the Soviet forces occupying their country has deteriorated rapidly
and verges on the desperate, according to two University of Kabul
professors who fled this year and are in constant contact with the
insurgent forces.
    In an interview, the professors, Sayd Bahouddin Majrooh and Saduddin
Shpoon, said the insurgents had received no substantial military
assistance from the United States and only a small amount of arms
from the Arab nations. A few weapons, they said, found their way
across the frontier from China.
    The two Afghans dismissed the latest appeal by the United Nations
General Assembly, made Thursday, for a Soviet withdrawal as, in
Shpoon's words, ''no help at all.'' What is required, he said, is
military and political pressure on the Soviet Union, not moral
support.
    The ability of the insurgents, who are short of weapons, to exert
military pressure is limited, according to the Afghans. They
estimated that there were only about 1,000 insurgents in daily
contact with a Soviet force of about 85,000; they asserted that the
total insurgent force was far greater.
    The Soviet Mi-24 helicopter gunship has proved effective and the
insurgents have only four launchers for antiaircraft missiles and few
missiles to arm them. Ammunition for the British-made Lee-Enfield
rifle, the standard firearm of the insurgents, is scarce and costly.
A round purchased in Pakistan costs the equivalent of $2.50 and many
rounds are defective.
    The insurgents, it is said, have had some success against Soviet
tanks using captured mines and gasoline bombs, but Shpoon pointed out
that the bombs take perhaps 15 seconds to ignite, giving a tank's
machine gunner time to fire.
    The professors saw little prospect of receiving more arms through
Pakistan, which they regard as the natural avenue for aid, unless the
Pakistanis got an American guarantee against Soviet aggression and
promised arms aid far in excess of the $400 million offered by the
Carter administration this year.
    The Russians have repeatedly violated Pakistani airspace in punitive
operations against fleeing insurgents, Shpoon asserted, and have
attacked Pakistani border posts from the air.
    Soviet air operations have driven hundreds of thousand of refugees
into Pakistan and depopulated whole regions, he maintained. A
guerrilla making his way through the Kunar Valley found that, aside
from two cows, he was the only living thing in a village; the valley
once had a population of half a million people. Similar depopulation
has been reported recently from Paktia Province.
    Many of the insurgents' reports of successful military resistance to
the Russians, which led some to see Afghanistan as a Soviet Vietnam,
are not in accord with the testimony of the two professors. They put
the Soviet death toll at 2,000 since the invasion late last December
- a casualty rate that Moscow probably finds acceptable, according to
American analysts. The professors also said the operations cost the
Russians $15 million a day and said that in consequence Moscow had
cut military aid to Vietnam and Cuba.
    With winter approaching, the Afghans predicted a lower level of
resistance in the next few months, but they were confident that
despite the lack of modern weapons resistance was general.
    ''If we do not get help the situation will be precarious,'' Majrooh
said. ''But the Russians cannot kill us all. We will continue to
fight.''
    The two men, who came to the United States under the sponsorship of
Freedom House, a nonprofit organization devoted to strengthening the
institutions of freedom, reported that there were six political
groups in the insurgency. Some of the more fundamentalist Islamic
groups have received small amounts of assistance from Iran, they
added.
    The Russians and the Afghan government of President Babrak Karmal
have combined to eliminate most intellectuals, the two men said,
putting the number killed, imprisoned or forced to flee at around
50,000. ''The cream of our society has been wiped out,'' Majrooh said.
    He and his colleague put the number of collaborators with the Soviet
Union at 5 percent of a population estimated by the Central
Intelligence Agency at 14.8 million, with only a small part of this
group actively pro-Soviet.
    
ny-1122 1518est
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a236  1255  22 Nov 80
AM-War Rdp, Bjt,600
Iran Says Iraq Has Launched Ground-to-Ground Missiles
Laserphotos TOK1-3
By ALEX EFTY
Associated Press Writer
    BAGHDAD, Iraq (AP) - Iran claimed Iraq launched ground-to-ground
missiles on an Iranian city Saturday to blunt a counterattack on the
heights that command main highway routes from Iran's western border to
Baghdad. U.N. peace envoy Olof Palme arrived here after Iranian
officials reportedly told him his mediation efforts were ''a waste of
time.''
    Iran's official news agency Pars said the Iraqi assault with
Soviet-made missiles escalated the running battles by paratroopers for
the hills overlooking four Iraqi-occupied villages in the northern
sector of the 300-mile battlefront.
    The agency said the missiles smashed into residential areas in the
Iranian town of Gilan Gharb overnight, killing and wounded civilian
inhabitants. No specific figures were mentioned.
    Gilan Gharb and the neighboring towns of Mehran, Qasr-e-Shirin and
Sar-e-Pol-e-Zahab have taken the brunt of the fighting in Iran's
week-long counter-offensive at the northern sector.
    All four towns were taken by Iraq in the first two weeks of the war,
which began Sept. 22 after months of sporadic border clashes. The
Iraqis control a highway and a dirt road network to Baghdad, 90 to 120
miles to the west.
    Iraqi communiques reported fresh helicopter gunship assaults on
Iranian positions in the northern sector at the Qasr-e-Shirin-Gilan
Gharb axis and elsewhere in the oil-rich province of Khuzistan, site
of most of the fighting.
    Tehran radio broadcasts also spoke of helicopter gunship and
paratroop raids in the northern and southern sectors of the
battlefront, claiming two more strategic hills in the Gilan Gharb area
were wrested from the Iraqis.
    Iran claimed a total of 1,700 Iraqis killed at the end of the first
week of its counter-offensive at all fronts Saturday, and Iraq
claimed 1,125 enemy troops killed.
    It was the third time Pars has claimed Iraq used surface-to-surface
missiles in the war. The previous two attacks were mounted against
the major Iranian army garrison town of Dezful, 50 miles east of the
Iraqi border on the northern edge of Khuzistan. Dezful is 180 miles
southeast of Gilan Gharb and Iran claimed 255 of its civilians were
killed in the earlier assaults.
    Tehran radio's evening communique reported 25 Iraqis killed in
ground fighting to the west of Dezful.
    Iranian officials have said Iran will not respond in kind to the
missile attacks because they are contrary to ''Islamic principles.''
    Iranian forces have been on the counterattack in the Khuzistan city
of Susangerd since Nov. 14 and the city of Abadan since Monday.
    Pars reported Ahwaz, the capital of Khuzistan, and the oil-refining
city of Abadan came under heavy Iraqi artillery fire Saturday. Iraqi
forces in the Ahwaz front suffered ''considerable losses,'' Tehran
radio said.
    The agency said Abadan's defenders pushed Iraqi troops more than a
half-mile away from the northeastern and eastern outskirts of the
city, whose giant oil refinery provided 60 percent of Iran's fuel
needs before the war.
    Pars said the closest Iraqi forward line is now 3.6 miles from
Abadan, Iran's last major stronghold located at the southern end of
the war zone on the eastern bank of the Shatt al-Arab waterway. The
estuary is Iraq's only outlet to the Persian Gulf.
    The Iraqis were at the gates of Abadan last week. The counter-attack
came a few days after Iran's Islamic revolutionary leader Ayatollah
Ruhollah Khomeini appealed to the Abadan garrison to break the Iraqi
siege at all costs, warning ''once the Iraqis are in Abadan, we will
never get them out.''
    
ap-ny-11-22 1556EST
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n047  1319  22 Nov 80
 
BC-MUSKIE
(EXCLUSIVE: 6:30 P.M. EST Embargo)
By BERNARD GWERTZMAN
c.1980 N.Y. Times News Service
    WASHINGTON - Secretary of State Edmund S. Muskie says that the
Reagan administration will take over at a time when the Soviet Union
is looking for ''a more stable, less confrontational relationship''
with the United States and seems to desire ''a face-saving'' formula
to resolve the Afghanistan crisis.
    In a wide-ranging interview Friday, Muskie said the new
administration faces some ''front burner'' problems that it will have
to deal with immediately. These included, he said, the necessity of
ending the Iran-Iraq war before oil prices took a major leap forward.
He pointed to the situation in Poland as dangerous and urged that the
Reagan administration push the Middle East negotiations forward.
    He said he hoped that the Carter administration could resolve the
hostage crisis with Iran before it leaves office on Jan. 20, although
he noted that efforts to free the hostages had been ''fairly
disappointing.'' He said that he could not predict when the 52
Americans would be freed until the United States had a chance to
study Iran's response to the American proposals for meeting Iran's
four demands for their release.
    The interview, in the eighth floor dining room at the State
Department, was conducted before the Iranians had sent a message to
Washington.
    Looking back on his brief stint in office, the former senator from
Maine repeated his unhappiness with the way the foreign policy
machinery had operated in the Carter administration and said that if
President Carter had been re-elected, he would have sought sharp
limits in the role of Zbigniew Brzezinski, the national security
adviser.
    ''I expect the new administration will make changes in the running
of foreign policy,'' Muskie said. ''They're quite aware that this
situation did President Carter no good. The national security adviser
ought not to have a press officer. And he ought not to give press
backgrounders. He ought not to be dealing with representatives of
foreign governments in an official way.''
    ''If I'd been president,'' he said. ''I wouldn't have permitted it.''
    Muskie said that he had differences in policy with both Brzezinski
and Defense Secretary Harold Brown. In the interview, he indicated
that he thought the new administration would be dealing with a Soviet
leadership ready to seek better relations. His relatively relaxed
view of the Russians is not shared by Brzezinski or Brown.
    Asserting that the Russians were caught ''in a dilemma'' in
Afghanistan, Muskie said they were seeking ''a face-saving way to get
out.''
    He said that Soviet ''restraint'' in Poland and in the Iran-Iraq
war, the compromise reached at the European security conference in
Madrid, and conciliatory statements toward the Reagan administration,
all suggest that ''they are looking for a more stable, less
confontational relationship with the United States.'' He said it may
be due to a Soviet desire ''to get out of an uncomfortable period.''
    During the presidential campaign, Carter had made an issue out of
seeking Senate approval for the pending strategic arms limitation
treaty with the Soviet Union. Reagan had said he would not seek
ratification, but instead would seek to renegotiate a new treaty.
    Muskie said in the interview that even if Carter had been
re-elected, the Carter administration would probably have ended up
doing what Reagan will probably do, rather than in seeking a Senate
vote on the treaty as it stands.
    ''There was no assurance that if we won the election that we'd have
the constituency to ratify the Strategic Arms Limitation Treaty,'' he
said. ''We conceivably would have had to suggest to the Russians that
in order to get the votes, we ought to look at the treaty again to
see if there were ways of making it more acceptable to our side that
they could accept also.''
    ''The exercise we would have had to engage in might not be that much
different from an option that perhaps the Reagan administration may
at some time consider, changes in SALT II,'' he said. ''So we may
find the Reagan administration doing things with respect to SALT II
that we might have had to undertake.''
    The secretary said that he and his wife Jane would continue to live
in Washington, while spending the summers at their home in Kennebunk,
Me. He planned to augment his government pension by giving speeches
and is considering offers from some law firms, but he does not want
to do any lobbying.
    
ny-1122 1621est
**********

a240  1325  22 Nov 80
AM-Iran-Iraq Q&A, Bjt,600
AP News Special
By STEVE K. HINDY
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran and Iraq have been at war for two
months. Here, in question-and-answer form, is an analysis of the
impact of the war and the status of the fighting.
    Q. Who is winning?
    A. Iraq has captured some border areas, portions of the Iranian oil
port of Khorramshahr and invested other cities in oil-rich Khuzistan
Province. But most analysts agree that the longer the war goes on,
the more the odds favor Iran.
    Iran, which has 36 million people compared to Iraq's 12 million, has
so far put up a surprisingly tough resistance and has chances of
gaining military aid if the 52 U.S. hostages are freed.
    Iraqi President Saddam Hussein is expected to face increasing
opposition from Iraq's Shiite Moslem majority if the war against
overwhelmingly Shiite, but non-Arab Iran drags on for long.
    The military situation is difficult to assess. Each side issues
battle reports, but they are usually contradictory and many analysts
consider inflated the reports of damage. The few Western reporters in
Tehran have not been allowed to visit battle fronts, and
Baghdad-based correspondents have only been permitted to make
government-supervised visits.
    Q. How long will the war last?
    A. Attempts by the United Nations, the Islamic Conference and
non-aligned nations to halt the fighting have failed. Western
diplomats say the war will go on as long as the combatants have
weapons or until Hussein or Ayatollah Ruhollah Khomeini loses domestic
support. Some respected analysts say the war could sputter on for
years.
    Q. What is the level of fighting?
    A. In the first month, Iraq pushed as far as 50 miles inside Iran,
claiming 4,000 square miles of land. Since then, Iraq appears to have
decided to use artillery to wear down Iranian forces.
    In the past week, the Iranians have claimed successful
counterattacks against Iraqi positions all along the 300-mile front.
But no one has been able to verify the claims and there has been
little accurate information on the size or dispositions of forces
involved in the fighting since the outbreak of war on Sept. 22.
    The air war has involved attacks by limited numbers of planes on
widely scattered targets.
    Q. Is the war spreading?
    A. Iran has repeatedly threatened to conduct air raids throughout
the Persian Gulf area if other countries support Iraq. Arab states on
the gulf have taken security measures and Saudi Arabia has received
four sophisticated radar planes from the United States to provide
early warning capability.
    On Nov. 11, Kuwait accused Iran of firing rockets on an isolated
border post and later said its anti-aircraft defenses opened fire on
the Iranian jets. Kuwait made a similar claim Nov. 16, and said
Saturday that it had received Iranian denials of the attacks. Such
incidents, if true, have the potential for drawing in other nations.
    The United States and other Western countries, worried about a
threat to vital Persian Gulf oil routes, have more than 50 warships in
the Persian Gulf area.
    Q. What are Iran's and Iraq's conditions for peace?
    A. Iran says it will not discuss a cease-fire until Iraq withdraws
all its troops from Iran. Iraq says it will not pull back until Iran
recognizes Iraqi sovereignty over disputed border areas and the Shatt
al-Arab waterway. Iraqi officials say there will be more conditions
as time passes. Their positions appear irreconcilable.
    Q. What role are the superpowers playing?
    A. The Soviet Union is playing a wait-and-see game, reportedly
refusing an Iraqi request for arms, ammunition and spare parts. The
United States has said it does not want Iran ''dismembered'' and it
has said spare parts and bombs paid for by the late shah will be
delivered if the U.S. hostages held in Iran are released.
    Both the Soviet Union and the United States have increased their
military presence in the gulf area since the war began.
    
ap-ny-11-22 1626EST
**********

n048  1327  22 Nov 80
 
BC-MUSKIE Addatend
NYT WASHINGTON: any lobbying.
    Muskie, who himself was a vice presidential candidate in 1968, and
sought the Democratic presidential nomination in 1972, said that he
believed Carter lost because of a pessimistic feeling in the nation
that was reflected in dislike for his administration.
    ''In many ways, I think people feel more pessimistic than people did
in the depths of the Depression in the 1930s because even in the
Great Depression, people felt that they were in dire straits because
the country wasn't using its enormous resources effectively,'' he
said. ''Today, people are pessimistic because they feel that there is
a limitation to resources and a tendency for human beings to waste
them and be less productive in using them than they ought to be.''
    As to the ''front-burner'' issues, Muskie said that unless the
Iran-Iraq war ended soon, the next administration would be faced with
''a crunch'' on oil prices.
    ''You don't have to have access to any secrets to realize that if
you lose 4 million barrels of production a day, that at some point,
the glut that existed at the time will have gone down, and the spot
market will become increasingly subject to pressure from nations
whose supply was affected by the loss of Iran-Iraq production,''
Muskie said.
    On relations with Saudi Arabia, he said that the dispatch of Air
Force Awacs radar surveillance planes had improved relations, but
that Saudi requests for bomb racks and other equipment for F-15
fighters on order will produce problems for the next administration
as it did for this one.
    Such requests, he said, were ''controversial'' and would probably be
''an on-going problem how to balance their needs and the fears and
concerns those issues always arouse in Israel.''
    Muskie said that it was important for the United States to maintain
its policy of not supplying China with arms, and to avoid becoming
entangled in any military alliance with Peking to offset concern
about Moscow.
    He said that China often asks ''for things that we find we ought not
to give.''
    ''I think our policy of not providing weapons is important and right
at this point,'' he said.
    He raised what he called the ''hypothetical'' possibility that
because of Afghanistan or some other Soviet action, some officials
might propose a military alliance with the Chinese.
    ''But you might get out of it a Russian conclusion that there is no
hope for a stable, healthy relationship,'' he said. ''So by
overreacting you might provoke the very kind Soviet behavior that
you're trying to deter.''
    Muskie said it was important to remember that the Soviet Union has
''human reactions'' just as the United States.
    ''Somehow, we don't accept the notion that if we push them around,
or appear to push them around, they have a right to push back in the
same way that we do,'' he said. ''People are people. And reactions
are reactions.''
    Looking back on his six months in office, Muskie, who is 66 years
old, said he had absolutely no regrets about having given up his 22
years in the Senate for this short term as secretary.
    In the Senate, he said, ''I was getting bored by things that would
have fully kept my adrenalin flowing fully 22 years before.''
    ''This was a new life, a new way to develop, to grow, new
experiences,'' he said. ''I'm just delighted to have had this
opportunity and I'm waiting to go on to the next experience. In a
way, I regret that I am not going to have a four-year term. It is a
real regret but it doesn't make me depressed.''
    
ny-1122 1629est
**********

a253  1500  22 Nov 80
AM-Iran-Hostages,410
Iran Asks U.S. For Specific Response To Hostage Release Terms
By STEVE HINDY
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian Prime Minister Mohammad Ali Rajai's
office on Saturday asked the United States for a ''positive'' or
''negative'' response to terms for releasing the 52 U.S. hostages
because its first reply ''was neither explicit nor clear,'' Pars news
agency said. A leading Iranian judge predicted the captives, held for
more than a year, would not be freed before Ronald Reagan is
installed as president.
    Iran's stern Islamic Judge Sadegh Khalkhali, interviewed at his
Tehran office by telephone from The Associated Press here, said the
United States had refused to give a ''clear and sincere reply.'' He
said, ''I don't think so,'' when asked if the hostages would be freed
before Reagan takes office Jan. 20.
    Meanwhile in Washington, Deputy Secretary of State Warren
Christopher briefed relatives of the hostages on negotiations under
way to end the crisis.
    Louisa Kennedy, wife of hostage Moorhead C. Kennedy and spokeswoman
for the Family Liaison Action Group, said Christopher described the
government's continuing efforts. ''I can't go public with anything
further than that, but that doesn't mean he told us anything much that
isn't generally known.''
    The report that Iran had requested a second U.S. reply came from the
official Pars news agency, quoting an unidentified official in
Rajai's office.
    Pars said the request was sent to the Algerian government, which is
acting as an intermediary in the crisis and received the secret U.S.
reply nearly two weeks ago from Christopher.
    State Department spokesman John Trattner said in Washington he could
not confirm the Pars dispatch and declined to comment on the reported
complaint that the U.S. reply was not explicit.
    Secretary of State Edmund S. Muskie said Thursday that America had
accepted ''in principle'' terms for the hostages' release set down by
the Iranian Parliament, the Majlis, on Nov. 2. The conditions:
returning the wealth of the late Shah Mohammad Reza Pahlavi; lifting
the freeze on Iranian assets in U.S. banks; dropping lawsuits against
Iran and pledging non-interference in Iranian affairs. There are said
to be legal problems in meeting all but the last demand.
    Iran wants the United States to ''clearly announce its positive or
negative response to the Majlis document,'' Pars quoted the Rajai
office official as saying. ''The U.S. reply, as far as Iran was
concerned, did not explicitly and clearly refer to any of the clauses
of the Majlis decision.''
    
ap-ny-11-22 1801EST
**********

a284  1749  22 Nov 80
AM-Arab Summit,390
Syria Says It Will Boycott Arab Summit Conference
With AM-War Rdp Bjt
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan (AP) - Syria, denouncing ''grave differences'' in the
Arab world because of the Iran-Iraq war, walked out of an Arab League
meeting Saturday and announced it would boycott a planned Arab summit
conference.
    Marxist South Yemen and the Palestine Liberation Organization
expressed their support of the Syrians while Jordan said the summit
would convene here as scheduled on Tuesday.
    Jordanian and Arab League officials have said the summit would be a
turning point in collective Arab policy toward Israel.
    A league spokesman said at least 17 Arab kings and heads of state
promised to attend the conference to be headed by Secretary-General
Chadli Kleibi of Tunisia.
    According to the spokesman, the boycott plans were announced by
Syrian Foreign Minister Abdul Halim Khaddam. He quoted Khaddam as
saying there were ''grave differences dividing the Arab world. If the
conference insists on holding the summit next Tuesday, then Syria
will not attend it.''
    Khaddam then walked out of the conference hall two minutes before
the end of the 21-nation foreign ministers meeting, according to the
spokesman.
    He said South Yemen declared its backing of Syria but other
delegates did not state their positions.
    A Jordanian spokesman said Libya, Algeria and the PLO might attend
but the level of their representation had not been determined.
    One league official, referring to the crackdown on Palestinian
guerrillas in Jordan 10 years ago by Jordanian King Hussein, said,
''The splits in Arab ranks today are more serious than at any time
since the Cairo summit of 1970.'' Egypt's membership in the Arab
League was suspended after it signed the peace treaty with Israel.
    Informed sources said the Syrians were upset by the inclusion of the
Iraqi-Iranian war in the summit agenda under the general topic of
Persian Gulf security.
    Saudi Arabian Foreign Minister Prince Saud al-Faisal said the heads
of state will discuss collective Gulf security.
    Syria supports Iran and would oppose any collective action,
political or military, against the Tehran government.
    The foreign ministers of Jordan, Kuwait and Saudi Arabia have argued
that Arab solidarity should involve support for Arab Iraq against
non-Arab Iran in the 62-day-old war.
    
ap-ny-11-22 2050EST
**********

n500  1809  22 Nov 80
 
BC-SKED-11-23
    GOOD EVENING:
    The FIELD NEWS SERVICE daily report will resume following this
budget. The editors may be phoned at 312-321-2801.
    
    
    SUNDAY, NOV. 23, 1980
    
    
    BEHIND THE TOP HEADLINES
    
    LAS VEGAS (Simon - Sun-Times - SIMON) - COMMENTARY: ''We got the
money out,'' Bernie Rothkopf, MGM Grand Hotel president, said. ''Some
burned up, we figure, but we got a lot out. Of course, it is the
people who count.'' Of course. But it is the money they worry about.
And through the rest of Las Vegas, the show goes on. (1,200) FNSPM
    
    
    INTERNATIONAL
    
    BAGHDAD, Iraq (Watson - Baltimore Sun - IRAQ) - Before the Iraq-Iran
war, visitors to Baghdad generally flew in. The airport is closed to
commercial traffic now, and the bus trip from Amman, Jordan, lasts 15
hours. The bus driver makes up for not knowing the way by playing
country and Western music on the bus's stereo system. (1,200) FNSPM
    
    NEW DELHI (Loudon - Telegraph - CHARLES) - Britain's Prince Charles
does not care for spicy foods, and Indian organizers of a reception
for him report that they have been told to arrange food for him that
will have ''an Indian touch but a primarily English flavor.'' (250)
FNSPM
    
    PEKING (Earnshaw - Telegraph - GANG) - Four of the 10 defendants in
China's sensational ''Gang of Four'' trial have already admitted
their guilt, according to the official Chinese press. (450) FNSPM
    
    
    DOMESTIC
    
    CHICAGO (Petacque, Hough - Sun-Times - RAGE) - Bernardine Dohrn and
William Ayers, who disappeared into the radical-left underground a
decade ago, soon may come out of hiding as a result of negotiations
being conducted in Chicago. (1,050) FNSPM
    
    SAN FRANCISCO (Dobbin - Baltimore Sun - EGGS) - The state of
California and a logging company are at legal loggerheads over a
nesting bald eagle couple, with the dispute centering around how much
of a buffer zone should be set up near the nest and use of an
adjacent access road. (600) FNSPM
    
    
    SPORTS
    
    SOUTH BEND, Ind. (Gleason - Sun-Times - IRISH) - Caught up in the
emotion of the final home game for coach Dan Devine, Notre Dame
defeats Air Force almost as an afterthought. The final score was
24-10, but at no time did the Irish play like the undefeated team
they are. (900) FNSPM
    
    
ny-1122 2110est
**********

n505  1858  22 Nov 80
 
BC-IRAQ-2takes-11-23
    By Douglas Watson
    (c) 1980, The Baltimore Sun (Field News Service)
    BAGHDAD, Iraq-Through the night the bus's tape sound system blared
American lyrics such as ''Country road, take me home to the place
that I belong-West Virginia.''
    Such songs, and disco music, had been demanded by Arab students
taking the 15-hour ride to Baghdad from Amman, Jordan, to return to
Iraqi universities that are reopening despite continuation of this
country's two-month-old war with Iran.
    The other group of passengers who made the bumpy, frequently halted
606-mile trip were salesmen for international businesses who have
been promised contracts if they attended Iraq's postponed but now
open trade fair.
    It was a tiring journey but one in which singing and joking among
seatmates and a comic driver were more noticeable than any war
jitters.
    All but two of the 43 seats on the streamlined JETT (Jordan Express
Tourist Transport Co.) bus were filled as they left the Amman station
promptly as scheduled at 4.30 p.m.
    Built by Nissan Diesel, a Japanese company, and featuring air
conditioning, a lavatory and stereo system, the orange-striped silver
bus was a far cry from the gaily painted but broken-down
schoolbus-type vehicles that rumble along most Middle East roads.
    Interest was added by Mr. Salmon, the Iraqi driver, who was on his
first Jordan's capital. He started driving in the wrong
direction until alarmed passengers turned him around.
    The bus spent much time winding its way out of Amman because nearly
every other street was blocked by police protecting delegations for a
hoped-for Arab summit conference.
    Salmon was just as confused later when the bus stopped at the oasis
town of El Azraq, where Lawrence of Arabia once camped. Again, the
bus headed off the wrong way (back toward Amman) until passengers
intervened.
    Salmon seemed more interested in the bus stereo system than in
watching the road.
    He started the trip by inserting tape deck of prayers from the
Koran. Soon the university students, most of them Palestinians
returning to Mosul University in northern Iraq, began shouting
requests for something more lively, such as ''music from Lebanon.''
    Throughout the long night's journey, the whine and wail of Arab
music was interspersed with American pop songs, though few of the
passengers understood the English lyrics.
    Even fewer would have approved of some of the lines. ''Let the devil
take tomorrow, 'cause tonight I need a friend. ... Help me make it
through the night,'' sang a feminine voice.
    The students spoke English, in varying degrees. A medical student
explained, ''There are no books in Arabic which talk about medicine.''
    As is expected in the Arab world, the women passengers and their
male counterparts did not get too friendly, avoiding the flirting
that would have been likely among men and women college students on
an all-night excursion in America.
    The salesmen for Europen and American companies were a cheerful
bunch, even though they were deprived of their ususal quick flight to
Baghdad airport, which remains closed to all commercial flight
because of the war. The salesmen expect the war will mean more rather
than less business because so much needs to be rebuilt.
    One said that, in an effort to assure success of its annual trade
fair, Iraq at first warned companies expecting to do business with
this oil-rich country that they had better be at the fair, then
assured them that those whose representatives come will not go away
without sales.
    Among the passengers was the wife of a Russian- and English-speaking
Iraqi Air Force officer. She was returning home after going to
Germany for surgery, a trip she said was made possible ''thanks to
our president (Saddam Hussein).''
    The two-lane road across the empty desert has become a busy truck
route, it being the main supply line for Iraq since its Persian Gulf
ports were closed by the war.
    Outside of Amman the bus passed a parked line of fuel trucks
apparently waiting to carry gasoline to Iraq. At a police checkpoint,
scores of waiting tractor-trailer trucks returning from Baghdad
filled both lanes of the road, requiring eastbound traffic to move
onto the shoulder.
    Rolling eastward, the only lights visible were those of the stars.
Salmon, the driver, had disconcerting habits of switching off the
headlights briefly and of carrying on extended conversations-his arms
flailing the air-with passengers who chose to stand beside him for
hours.
    The trip would have been completed sooner but for six required
stops-four in Jordan and two in Iraq-at which passengers usually had
to present their passports.
    (MORE)
    
ny-1122 2200est
**********

a999  0433  23 Nov 80
. . ..
    Nov. 14 - Carter orders the freezing of all Iranian assets in the
United States.
    Nov. 19-20 - Thirteen American hostages - five women and eight black
men - are released.
    Nov. 29 - The United States asks the International Court at The
Hague, Netherlands, for a ruling against Iran.
    Dec. 4 - The U.
Bust It
    
ap-ny-11-23 0732EST
**********

a003  0442  23 Nov 80
BC-Iran Dates, 2 Takes,470-1,090
By The Associated Press
    Here are important dates in the Iran hostage crisis:
    Nov. 4 - Iranian militants seize the U.S. Embassy and take 98
persons hostage, demanding that the United States send the deposed
shah back to Iran.
    Nov. 6 - The Iranian government of Premier Mehdi Bazargan resigns.
    Nov. 9 - The United Nations Security Council calls on the militants
to release the hostages.
    Nov. 12 - President Carter orders a halt to oil imports from Iran.
    Nov. 14 - Carter orders the freezing of all Iranian assets in the
United States.
    Nov. 19-20 - Thirteen American hostages - five women and eight black
men - are released.
    Nov. 29 - The United States asks the International Court at The
Hague, Netherlands, for a ruling against Iran.
    Dec. 4 - The U.N. Security Council votes unanimously to urge Iran to
free the hostages.
    Dec. 12 - The U.S. State Department orders the expulsion of 183
Iranian diplomats.
    Dec. 15 - The shah flies to a ''temporary'' exile in Panama and the
International Court orders Iran to free the hostages.
    Dec. 25 - Three U.S. clergymen conduct Christmas services for the
hostages.
    Dec. 27 - Soviet troops pour into neighboring Afghanistan after
President Hafizullah Amin is overthrown and slain.
    Dec. 31 - The U.N. Security Council adopts a resolution calling on
Iran to free the hostages by Jan. 7 or face possible sanctions.
    Jan. 1 - U.N. Secretary-General Kurt Waldheim arrives in Iran,
hoping to negotiate the hostages' release, but is rebuffed.
    Jan. 13 - The Security Council votes to impose sanctions against
Iran but the Soviet Union vetos the resolution.
    Jan. 20 - Waldheim says he has a formula to resolve the crisis.
    Jan. 25 - Abolhassan Bani-Sadr is elected president of Iran.
    Jan. 29 - It is disclosed that the Canadian Embassy in Tehran
spirited six Americans out of Iran.
    Feb. 3 - Iran agrees to an international commission to investigate
Iran's charges against the shah and the United States.
    Feb. 13 - Carter says he favors a U.N. commission to look into
Iran's charges.
    Feb. 20 - Waldheim announces a U.N. commission and says it will go
to Tehran in an effort to resolve the crisis.
    March 3 - Iran's ruling Revolutionary Council approves a visit to
the hostages by the U.N. commission.
    March 4 - The militants holding the hostages balk at any such visit.
    March 6 - The militants say they will turn the hostages over to the
Iranian government.
    March 8 - In a dispute with the Bani-Sadr government, the militants
refuse to turn the hostages over.
    March 10 - Ayatollah Ruhollah Khomeini sides with the militants,
saying the hostages must remain in their hands.
    March 11 - The U.N. commission leaves Iran without giving a report
on its investigation.
MORE
    
ap-ny-11-23 0741EST
**********

a004  0455  23 Nov 80
BC-Iran Dates, 1st add,730
UNDATED: its investigation.
    March 14 - The first of two rounds of voting is held for Iran's new
parliament which officials say will decide the fate of the hostages.
    March 22 - An attorney representing Iran says in Panama he plans to
start proceedings for the extradition of the shah.
    March 23 - The shah flies to Egypt to undergo an operation for the
removal of his spleen.
    April 1 - Bani-Sadr offers to take custody of the hostages and
Carter calls this a ''po3itive development.''
    April 6 - American clergymen conduct Easter services for the
hostages.
    April 7 - Khomeini again rules the hostages must remain in the
custody of the militants, rebuffing Bani-Sadr. The United States
breaks diplomatic relations with Iran and imposes economic sanctions.
    April 17 - Carter imposes additional economic sanctions against Iran
and indicates the next step may be military action.
    April 25 - A U.S. military operation to free to hostages is aborted
because of helicopter failure. Eight U.S. servicemen are killed in
the collision of a C-130 transport plane and a helicopter inside Iran.
    April 26 - Iran says the hostages have been moved from the U.S.
Embassy in Tehran to other parts of the city and country.
    April 28 - Secretary of State Cyrus R. Vance resigns in protest of
the U.S. rescue mission and is succeeded later by Sen. Edmund Muskie.
    April 30 - Men identified as Iranian Arabs seize Iran's embassy in
London and take more than a score of persons hostage, demanding the
release of 91 political prisoners they claim are held in Iran.
    May 5 - British commandos storm Iranian Embassy in London, ending a
six-day terrorist occupation after the gunmen killed two of their
hostages.
    May 9 - Iranians vote in run-off election for a parliament that is
empowered to decide the fate of the American hostages.
    May 24 - In a unanimous ruling, the World Court at The Hague calls
for release of the hostages and in a split decision says Iran should
compensate the United States for the seizure. Iran dismisses the
ruling.
    May 28 - Iran's new parliament convenes but takes no immediate
action on the hostage question.
    July 10 - Khomeini orders the release of hostage Richard Queen, a
28-year-old vice consul, because of an illness which later is
diagnosed as multiple sclerosis. The Islamic regime claims it has
crushed a U.S.-backed plot to overthrow the government and bomb
Khomeini's home.
    July 27 - The shah dies in Cairo. U.S. officials express doubt his
death will lead to a speedy release of the hostages.
    July 29 - After a state funeral attended by former President Richard
M. Nixon in an unofficial capacity, the shah is buried in a Cairo
mosque.
    Sept. 12 - Khomeini lists his four conditions for the hostages'
release: return of the late shah's wealth, cancellation of U.S. claims
against Iran, unfreezing of Iranian funds in the United States and a
guarantee of no U.S. interference in Iran.
    Sept. 17 - Following months of border skirmishes, Iraq abrogates its
1975 border agreement with Iran.
    Sept. 22 - Iraq and Iran border hostilities become a full-scale war,
with air attacks on Tehran and Baghdad and Iraqi thrusts into Iran.
    Oct. 17 - Prime Minister Mohammad Ali Rajai of Iran, speaking before
the U.N. Security Council in New York, accuses the United States of
helping Iraq in the war, seeing ''an opportunity,'' he says, for
getting the hostages released.
    Oct. 18 - Rajai tells a New York news conference he believes the
United States, ''in practice,'' has apologized for its previous
support of the shah and that an Iranian decision on the hostages issue
is ''not far away.''
    Oct. 26 - The Majlis, Iran's parliament, begins its long-awaited
debate on the hostage issue.
    Oct. 31 - Radio Tehran says Iran has been victorious in the hostage
issue and adds that a ''just method'' has been worked out for
releasing the Americans.
    Nov. 2 - The Majlis votes to release the hostages if the United
States accepts four conditions set down by Khomeini.
    Nov. 4 - The hostages mark the first anniversary date of their
seizure. Ronald Reagan is elected president in an electoral-vote
landslide.
    Nov. 10 - The United States delivers the U.S. response to Iran's
four conditions for release of the hostages to Algeria, acting as
intermediary in the negotiatons.
    
ap-ny-11-23 0755EST
**********

a005  0501  23 Nov 80
BC-Iran Chronology, 38th add,260
UNDATED: the U.S. message.
    Day 379, Nov. 16 - Tehran Radio quotes Hashemi Rafsanjani, speaker
of Iran's Parliament, as saying it was ''too busy'' to discuss the
hostages. Henry A. Kissinger, former U.S. Secretary of State, says he
expects Iran to free the hostages before the Jan. 20 inauguration of
President-elect Reagan.
    Day 380, Nov. 17 - Rafsanjani says the Parliament has decided the
hostage issue, is unlikely to take it up again and that the matter is
in the hands of the Iranian government.
    Day 381, Nov. 18 - Rafsanjani visits Algeria and an aide to
Ayatollah Ruhollah Khomeini says he should discuss the hostage issue
with Algerian officials since Algeria is acting as intermediary in the
negotiations.
    Day 382, Nov. 19 - Rafsanjani tells a news conference in Algiers
that U.S. acceptance of Iran's conditions ''in principle is not
enough'' and if the United States meets the conditions ''we will
release the hostages tomorrow.''
    Day 383, Nov. 20 - U.S. Secretary of State Edmund S. Muskie says the
United States has accepted Iran's four points in principle, but other
U.S. officials indicate there is still disagreement over details of
the Iranian demands.
    Day 384, Nov. 21 - There is no indication from Washington or Tehran
of progress on the hostage issue.
    Day 385, Nov. 22 - Prime Minister Rajai's office says the U.S.
response is ''neither explicit nor clear,'' Pars news agency reports.
The agency says Iran is asking Algeria to tell the United States to
''clearly announce its positive or negative response.''
    
ap-ny-11-23 0800EST
**********

a006  0504  23 Nov 80
BC-Iran Week By Week, 16th add,150
UNDATED: the issue.
    Week 55, Nov. 16-22 - Tehran Radio quotes Hashemi Rafsanjani,
speaker of Iran's Parliament, as saying it is ''too busy'' to discuss
the hostages and that the matter is in the hands of the government.
    On Nov. 19 on a visit to Algeria, Rafsanjani tells a news conference
U.S. acceptance of Iran's conditions ''in principle is not enough''
and if the United States meets the conditions ''we will release the
hostages tomorrow.''
    U.S. Secretary of State Edmund S. Muskie says Iran's four points
have been accepted in principle, but other U.S. officials indicate
there is still disagreement with Tehran over details of Iranian
demands. Pars news agency quotes Prime Minister Rajai's office as
saying the American response is ''not explicit or clear'' and that
Iran is asking the Algerians to tell the United States to ''clearly
announce its positive or negative response.''
    
ap-ny-11-23 0804EST
**********

n568  0505  23 Nov 80
 
BC-SUMMARY-4TAKES-11-23
    EDITORS:
     Following is a complete summary of today's FIELD NEWS SERVICE
report. The editors can be reached at (312) 321-2801.
    
    
    SUNDAY, NOV. 23, 1980
    
    
    BEHIND THE TOP HEADLINES
    
     LAS VEGAS (Simon - Sun-Times - SIMON) - COMMENTARY: ''We got the
money out,'' Bernie Rothkopf, MGM Grand Hotel president, said. ''Some
burned up, we figure, but we got a lot out. Of course, it is the
people who count.'' Of course. But it is the money they worry about.
And through the rest of Las Vegas, the show goes on. RELATED STORIES
LISTED UNDER DOMESTIC. (1,200) FNSPM
    
     UNDATED (Levey - Boston Globe - WORDS) - ''Pro-life'' or
''pro-choice''? And each side thinks the other has no right to its
chosen label. But how should news media handle the jargon of this
debate over abortion? It is a tough one to call. (1,250) FNSPM
    
     ANKARA (Borowiec - Sun-Times - ANKARA) - The Turkish high command
is hoping for a dramatic increase of U.S. military aid after the
inauguration of the Reagan administration. There has been no formal
commitment to that effect, but experts agree that with the present
level of assistance, ''we cannot arrest the deterioration of the
Turkish armed forces.'' (950) FNSPM
    
    
    INTERNATIONAL
    
     BAGHDAD, Iraq (Watson - Baltimore Sun - IRAQ) - Before the
Iraq-Iran war, visitors to Baghdad generally flew in. The airport is
closed to commercial traffic now, and the bus trip from Amman,
Jordan, lasts 15 hours. The bus driver makes up for not knowing the
way by playing country and Western music on the bus's stereo system.
(1,200) FNSPM
    
     NEW DELHI (Loudon - Telegraph - CHARLES) - Britain's Prince Charles
does not care for spicy foods, and Indian organizers of a reception
for him report that they have been told to arrange food for him that
will have ''an Indian touch but a primarily English flavor.'' (250)
FNSPM
    
     PEKING (Earnshaw - Telegraph - GANG) - Four of the 10 defendants in
China's sensational ''Gang of Four'' trial have already admitted
their guilt, according to the official Chinese press. (450) FNSPM
    
     UNDATED (Kinzer - Boston Globe - NICA) - The hostility between
Nicaragua's Marxist-oriented government and moderate businessmen and
politicians, which has been simmering since the revolutionary victory
19 months ago, has boiled over into open confrontation, violence and
a possible final political split. (1,000) FNSPM
    
     JOHANNESBURG (Munnion - Telegraph - SOVIET) - Dr. Vasily
Solidovnikov, the Soviet ambassador to Zambia, returns to Lusaka
empty-handed after an unsuccessful attempt to persuade Robert
Mugabe's government to establish diplomatic links between the Soviet
Union and Zimbabwe. (500) FNSPM
    
    
    DOMESTIC
    
     LAS VEGAS (Pitt, Simon - Sun-Times - MGM) - The deadly fire in the
MGM Grand Hotel smoldered in an electrical wiring area for up to
eight hours and would have been contained by smoke detectors and a
sprinkler system, Clark County Fire Chief Roy Parrish says. (850)
FNSPM
    
     LAS VEGAS (Lewthwaite - Baltimore Sun - FIRE) - As the bodies were
still being counted and the wreckage cleared up after one of the
nation's worst hotel fires, Las Vegas authorities turned their
attention to the safety of many of the 40,000 hotel rooms still
operating in this tinsel city. (900) FNSPM
    
     CHICAGO (Petacque, Hough - Sun-Times - RAGE) - Bernardine Dohrn and
William Ayers, who disappeared into the radical-left underground a
decade ago, soon may come out of hiding as a result of negotiations
being conducted in Chicago. (1,050) FNSPM
    
     CHICAGO (Petacque - Sun-Times - PARENTS) - The parents of former
Weather Underground leaders William Ayers and Bernardine Dohrn are
stunned, and elated, to learn from a reporter that their children may
surrender soon. (350) FNSPM
    (MORE)
    
ny-1123 0805est
**********

a206  0926  23 Nov 80
AM-War Rdp, Bjt,590
New Iran-Iraq Battles Reported, Abadan Ablaze
Laserphoto BAG2
By ALEX EFTY
Associated Press Writer
    BAGHDAD, Iraq (AP) - Iraq reported Sunday that paratroopers
supported by waves of helicopter gunships smashed an Iranian
counterattack on the northern war front, and Iran claimed its forces
crushed an Iraqi attempt to overrun the town of Susangerd to the
south.
    Iran's official news agency said Iraqi artillery bombardment of the
giant oil refinery at Abadan had started new fires and black smoke
billowed from the oil facilities of the besieged Iranian city near the
northern tip of the Persian Gulf.
    Olaf Palme of Sweden, a U.N. special envoy seeking ways to stop the
two-month-old war, was in Baghdad for talks with Iraqi leaders after
Iran rejected his mission as a ''waste of time.''
    Meanwhile, an Algerian delegation conducting negotiations between
Iran and the United States for release of the 52 American hostages
left Tehran for Algiers. Iran is seeking clarification of the U.S.
response to Iran's four conditions for freeing the Americans who spent
their 386th day in captivity Sunday.
    With the Persian Gulf war in its 63rd day, the Iraqi military
command reported rocket-firing helicopter gunships battered Iranian
troops and armor in renewed fighting at the north of the 300-mile
front where fighting has flared in hills overlooking Iraqi-occupied
villages near Gilan Garb.
    Iraq said 50 Iranians were killed in an attempt to counterattack
Iraqi positions and that four tanks and three other vehicles were
knocked out by Iraqi helicopters. Iraq also reported 32 enemy dead in
earlier fighting and said 63 more Iranian soldiers were killed in
fighting further south.
    Iranian communiques stressed action about 200 miles south at
Susangerd, a town on the main road to Ahwaz, capital of Iran's
oil-rich Khuzistan province.
    Iran claimed that Iraqi troops and tanks tried to mount a major
offensive aimed at Susangerd, preceeded by heavy artillery and mortar
bombardments. Iran said its forces crushed the Iraqi attack, ''killed
large numbers of the enemy'' and captured 17 Iraqi soldiers. ''The
infidels fled in chaos, leaving behind scores of burning tanks,'' the
Iranian news agency reported.
    During the course of the war, military communiques from each side
have given conflicting reports of battle action and there has been
little independent confirmation of rival claims.
    Communiques from Tehran on Sunday reported that Iranian warplanes
destroyed a chemical plant, a cement factory and an electric power
station in northwestern Iraq near the border with Turkey and Syria.
Iranian jets also destroyed an Iraqi radar station near Mosul, Tehran
said.
    Iraq reported one Iranian air raid in northern Iraq, but said that
only a civilian car was damaged and its driver wounded.
    Baghdad Radio said Iraqi jets attacked Iranian troops in the
Susangerd and Abadan areas, but gave no details.
    The Iranian report on renewed fires at the Abadan refinery complex,
said black smoke was blowing over the city's residential areas. Iraq
has said the city on the east bank of the Shatt al-Arab waterway is
under siege, but Iranian communiques continued to report assaults by
the Abadan garrison on Iraqi forces on the eastern outskirts of the
city.
    Palme, former prime minister of Sweden, met in Baghdad with Deputy
Premier Tariq Aziz and Foreign Minister Saadoun Hammadi and said it
was still too early for him to evaluate prospects for ending the
fighting.
    Palme started his mission in Tehran. According to Pars, the official
Iranian news agency, Prime Minister Mohammad Ali Rajai told Palme
that such peace missions were ''only a waste of time.''
    
ap-ny-11-23 1221EST
**********

a214  1100  23 Nov 80
AM-Arab Summit, Bjt,630
Arab Leaders Gather in Jordan for Summit Meeting
Laserphoto BAD1
By NICOLAS B. TATRO
Associated Press Writer
    AMMAN, Jordan (AP) - Most Arab leaders will gather here this week to
map long-term political and economic strategy but the possibility
loomed of a rival summit of hardliners, sources said Sunday.
    Syrian Foreign Minister Abdul Halim Khaddam was reported en route to
Libya and Algeria in an effort to promote a boycott of the League of
Arab States's meeting.
    ''There is a possibility of a sorehead summit,'' said one
knowledgeable source who asked not to be identifed.
    The split in the ranks of the 22-member Arab League has been brought
about by the two-month-old Iran-Iraq war and the fear of radical
regimes that Iraq would win at least implicit approval for its
position at the summit.
    Sources predicted between 16 and 19 kings, ruling sheiks and
presidents would go to Amman for the summit, which opens Tuesday at
the Royal Theater Hall on the western fringes of Jordan's capital.
    Syria, which announced it would not attend, and Libya, Algeria and
Marxist South Yemen, may hold their own mini-summit to demonstrate
''veto power'' of any strategy adopted by the moderates without their
consent, sources said.
    A key question is which summit will attract Yasser Arafat's
Palestine Liberation Organization, which in 1976 was moved from
observer status to full membership and which the league recognizes as
the only spokesman for the Palestinians.
    ''The PLO is in the embarrassing position of having the choice
between the sword and the gold,'' one Arab diplomat said.
    Syria, with 22,000 peacekeeping troops in Lebanon, controls the
PLO's power base there but oil-rich, conservative gulf states finance
Arafat's guerrillas.
    The PLO planned an executive committee meeting in Damascus, Syria,
to decide whether to attend the 11th Arab League summit here.
    With divisions rife, Arab and Western diplomats agree the focus here
is likely to be non-controversial issues such as increased economic
cooperation.
    Iraq has proposed a decade-long $15 billion scheme to promote joint
investments in the development of food, energy, transportation and
other projects.
    ''The current split in Arab ranks has given us an impetus to push
the summit as close as possible to complete success,'' one Iraqi
diplomat said. ''The economic theme will permeate the discussions
because we believe it is the one factor that can bring us inseparably
together.''
    Another topic, at least behind closed doors, is likely to be
discussions on an attempt to pry the new American administration of
President-elect Ronald Reagan away from the Camp David peace process
and its concept of limited autonomy for Palestinians.
    President Carter's policy was rejected by nearly all Arab states
except Egypt, whose membership was suspended in 1979, because it
failed to provide for Palestinian independence.
    One approach would be for Jordan's King Hussein to represent other
Arab states in seeking a ''positive alternative'' to the Camp David
concept. But Hussein would need a summit mandate, perhaps easier to
obtain if hardliners were absent, sources said.
    Several diplomats from the moderate Arab states expressed support of
that possibility.
    ''Kuwait regards King Hussein as an expert on the Middle East
question,'' said a Kuwaiti diplomat. ''He is flexible and
knowledgeable. He is the best Arab leader suited to talk in the name
of the whole Arab world with Reagan.''
    Similar views were expressed by Saudi and United Arab Emirates
diplomats, one of whom said, ''We agree that King Hussein be given an
open mandate to talk on behalf of the Arabs to Reagan.''
    In a post-election interview, Reagan suggested one of his top
foreign policy priorities after taking office Jan. 20 is a meeting
with King Hussein.
    Such plans could be undermined if Syria is successful in luring the
PLO away from sending a representative to the summit here.
    
ap-ny-11-23 1400EST
**********

a215  1130  23 Nov 80
AM-Iran-Hostages,500
Iran Seeks Clarification of U.S. Response On Hostages
By The Associated Press
    Iran asked the United States on Sunday to clarify the U.S. response
to Iran's conditions for freeing the 52 American hostages, a
spokesman for Prime Minister Mohammad Ali Rajai said in Tehran.
    The Iranian message was delivered to an Algerian delegation acting
as intermediary in the U.S.-Iranian negotiations, and Rajai's
spokesman told Western reporters that Iran seeks ''clear and explicit
answers'' from Washington on the four conditions set by Iran's
Parliament for release of the hostages.
    Greek Radio and Television quoted Ahmad Azizi, public relations
director of the prime minister's office, as saying Iran wants a clear
answer - ''either positive or negative'' - to the four conditions set
by the Iranian Parliament on Nov. 2.
    ''We cannot accept the responses with room for compromises or
negotiations or anything like that,'' Azizi said. ''We just want clear
and very explicit answers to the resolutions.''
    Abdel Karim Gherayeb, leader of the four-member Algerian delegation,
told Greek Radio and Television on departure from Tehran: ''We are
holders of documents of the Iranian answer to the American side. We
are going first to Algiers and we will see what happens next.''
    Gherayeb added that ''whatever we do, we will do it fast.'' The
delegation left for Algiers and it was not known when the Iranian
reply would be relayed to Washington.
    Azizi, who saw the Algerian delegation off at Tehran's airport, was
quoted by the Greek broadcast as saying that if the United States
gives an explicit response, ''I think there is no doubt that we will
move towards the release of the hostages.''
    The Americans have been held captive since Nov. 4, 1979. The Iranian
Parliament's terms for their release are: unfreezing Iranian assets
in the United States, withdrawal of all private and public claims
against Iran, a pledge of non-interference in Iranian affairs and
return to Iran of the late shah of Iran's wealth.
    Secretary of State Edmund S. Muskie said last week that the United
States had accepted ''in principle'' the Iranian conditions. But other
U.S. officials said that Washington and Tehran were not agreed on
details of meeting the conditions.
    The United States sent a team of officials to Algiers Nov. 10 to
present the American response to Iran. Details of the American reply
were not made public, but there have been reports that the United
States pointed out that the American government would have legal and
technical problems in halting public and private legal claims by
Americans against Iran and in confiscating and transferring to Iran
property of the late shah.
    Algeria, acting as an intermediary in the negotiations because it
represents Iran's interests in Washington, presented the American
position to Iranian officials and now have an answer for relay to
Washington.
    Rajai on Saturday said the United States should give a ''positive or
negative'' response to the Iranian conditions, the official Pars news
agency said.
    According to the agency, Rajai's office said the American reply was
''neither explicit nor clear.''
    
ap-ny-11-23 1428EST
**********

a226  1259  23 Nov 80
AM-OPEC Production,350
OPEC Oil Output Reported At 5-Year Low
For Release at 6:30 p.m. EST
Eds: A similar story moved in advance on the financial wire.
    NEW YORK (AP) - Oil output by OPEC members sank to a five-year low
of 25.44 million barrels a day in September amid the war between Iran
and Iraq and falling world oil demand, Petroleum Intelligence Weekly
said Sunday.
    The trade publication said a drop in oil consumption following a 150
percent rise in world petroleum prices since the end of 1978 resulted
in falling output by Organization of Petroleum Exporting Countries
members ''even before the full effect of the Iran-Iraq war was felt.''
    The weekly said September's OPEC production was down from an average
of 26.85 million 42-gallon barrels a day in July and August and was
off 20.7 percent from the 32.08 million barrels-a-day rate of
September 1979.
    The cartel's oil output was estimated at 27.7 million barrels a day
in the first nine months of 1980. The newsletter said the average was
''sharply below the annual 30 million barrels a day average
maintained over the past seven years except 1975, when a worldwide
recession pulled it down to 27.1 million barrels a day.''
    OPEC production comprised 58 percent of the non-communist world's
oil output in September. While the cartel's production dropped, oil
output in other Western countries gained 5.7 percent from last year's
level to 18.19 million barrels a day, Petroleum Intelligence Weekly
said.
    The newsletter said American oil output in September was up 2.9
percent from 1979 to 8.6 million barrels a day, while oil output in
Mexico surged 43.2 percent to 2.12 million barrels daily.
    The Iranian-Iraqi war cut off daily oil exports of 3.2 million
42-gallon barrels from Iraq and about 500,000 barrels a day from Iran
in late September. Iran's prewar production averaged 1.3 million
barrels a day, while that of Iraq came to 3.4 million barrels daily.
    Last week, industry sources in Beirut, Lebanon, said Iraq began
pumping oil to Turkey through a pipeline that can carry 700,000
barrels of oil a day, while Iran began shipping 200,000 barrels of oil
a day through a port at Lavan Island in the Persian Gulf.
    Saudi Arabia and several Persian Gulf allies last month raised their
production about 1 million barrels a day to help replace the lost
supplies.
    
ap-ny-11-23 1559EST
**********

a246  1441  23 Nov 80
AM-Iran-Hostages, INSERT, a215,40
    UNDATED, inserts 1 graf after 6th pvs with State Dept. comment:
Gherayeb added xxxx United States.
    In Washington, State Department spokesman Joe Reap said, ''We still
haven't received anything official. We're still in our wait-and-see
attitude. There are no travel plans at this time for anyone at
State.''
    Azizi, who, 7th graf
    
ap-ny-11-23 1740EST
**********

n077  1648  23 Nov 80
 
BC-SAFIRE-COLUMN
Commentary
ESSAY: Haig's Pinch
By WILLIAM SAFIRE
c. 1980 N.Y. Times News Service
     WASHINGTON - Get out your yellow pad and put yourself in the
loafers of the president-elect as he weighs the pros and cons of his
choice for secretary of state.
    One name that appears on the final four-name short list is Gen.
Alexander M. Haig Jr., foational Security Adviser
Henry Kissinger, former Army vice chief of staff, former White House
chief of staff, former NATO commander, former man on slow horseback.
    The assets are impressive:
    1. Demonstrated bravery. The Distinguished Service Cross is not
handed out lightly: Al Haig was a genuine hero in the battle of Au
Gap, early in the Vietnam War. In addition, he won a battlefield
promotion to colonel of an infantry battalion for leading troops in
An Loc. Performance in combat - coolness under fire - is an important
criterion in judging any man's qualification for a job in the storm
center.
    2. Well-regarded by allies. After arranging for the resignation of
Nixon, Haig was assigned by President Ford to the top military post
in Europe. As NATO's supreme commander, he won the respect of most of
our allies for his intelligence, political sagacity, and
forcefulness. Europeans are familiar with Haig and would be comforted
by his appointment.
    3. Firm grasp of the strategic threat. When he resigned from his
NATO job last year to test the political waters back home, Haig
recommended that the Senate hold the SALT II treaty in abeyance while
its flaws were renegotiated. He was especially critical of an
agreement that permitted the Soviet Backfire bomber and SS-20
missiles to ''run free'' while limits were placed on our cruise
missiles. Haig was tough on SALT before Afghanistan.
    4. Experienced cultivator of opinion-makers. Many of the books and
articles about the last days in the Nixon White House drew on details
supplied - on deep background - by Haig or his assistants; as a
result, most accounts gratefully portrayed Haig as the de facto
president, saving the country from the potential thrashing-about of a
wounded leader. Though Nixon loyalists fumed, practical politicians
admired Haig's ability to extricate himself with praise from the key
writers.
    Liabilities of a Haig appointment are also to be considered.
    1. Sycophancy footwork. Haig is the only four-star general never to
have commanded a division; he speeded from colonel to major general
under the sponsorship of Kissinger, who appreciated an efficient
order-follower who would coolly tolerate the most demeaning bullying.
Like a Gilbert and Sullivan admiral, Haig knew how to polish the
top-brass handles of the Oval Office door.
    2. The 17 illegal wiretaps. Because of a personal interest in the
1969-71 eavesdr...
opping on newsmen and White House aides, I asked
William Sullivan of the FBI i 1974 who was the man who transmitted
the White House request for the unlawful surveillance, and who
reviewed the transcripts. The reply: ''Colonel Haig.'' When asked to
say it wasn't so, my former colleague said of the tapping: ''It never
gave me gas pains.'' To this date, Al Haig has never been reprimanded
for - or shown any remorse for - his intimate role in this perversion
of the national-security power. (I have forgiven him, but whenever
there is a click on my phone, I cannot help saying ''Hi, Al.'')
    3. Trotting out the tapes. At confirmation hearings, any
embarrassing moments on the Nixon tapes involving Al Haig are sure to
be publicly played. A few apple-polishing remarks are already known -
''Only you, Mr. President'' - but Haig assures friends that no
substantive improprieties will be revealed. Before making any
decision, Governor Reagan will have to make certain that Haig's
recollection is accurate, and consider if he wants any Watergate-era
asso his secretary of state. (John Connally also
had this problem; George Shultz and Caspar Weinberger did not.)
    4. Running for president from State. Al Haig still wants to run for
president; as Ronald Reagan must be the first to know, that is not an
ignoble ambition. The question is: Does Reagan want a man at State
afflicted with the need to factor his political future into his
diplomatic recommendations?
    Now put down your Haig yellow pad. Pick up similar rundowns on the
pros and cons of other panel-recommended ''finalists'': Shultz, who
has asked that his name be withdrawn but who was told to take that up
with Reagan directly; William Casey, who is everybody's choice for
CIA chief but is showing late strength in the choice for State; and
Weinberger, who is closest of all to Reagan.
    Add to that list Henry Jackson, who would contribute that note of
unlike-mindedness on domestic affairs so needed among the top
handful. At the highest level, good-soldierliness is an overrated
virtue; it would be as much of a mistake for Reagan to put a military
mind at the head of State as it would be for him to put his personal
lawyer at the head of the Justice Department.
    Where does a Cabinetmaker come out? In the case of Haig, his assets
far outweigh his liabilities - for chairman of the Joint Chiefs, for
chief SALT negotiator, for ambassador to NATO or Moscow, or to
command a military-political operation to provide Iran with a
suitable trade for the hostages. Not for secretary of state. For
State, four wiser choices stare out from the yellow pads.
    
ny-1123 1948est
**********

n094  1900  23 Nov 80
 
BC-SOV-POLAND
By R. W. APPLE Jr.
c. 1980 N.Y. Times News Service
    MOSCOW - The threat of armed Soviet intervention in Poland has
receded in recent days, but Western diplomats and analysts doubt that
it has disappeared.
    In public, Soviet officials, like the controlled newspapers, are
extremely critical of the independent trade union movement, sometimes
so critical that they seem to be laying the groundwork for military
action. But in private conversations, another picture emerges.
Kremlin policy-makers voice concern in their talks with Westerners,
but they say they hope and believe that the Polish government is in
control.
    A week ago, Leonid M. Zamyatin, head of the international
information department of the Communist Party Central Committee, who
often acts as spokesman for President Leonid I. Brezhnev during
summit meetings, said Western countries were pouring ''millions of
dollars into Poland to support opposition groups'' and to finance
anti-government propaganda.
    ''They are trying to use the difficulties that have cropped up,'' he
declared on a television program, ''to undermine the trust of the
working class - the mass of the working people - in the leading role
of the Communist Party as the vanguard of Polish society.
    ''They are instigating some groups who oppose people's Poland to
form organized subgroups and thus structurally and legally to
formalize opposition to the existing Socialist system in that
country.''
    Last Wednesday, major Soviet newspapers, including the official
party organ, Pravda, published extracts from an article in Trybuna
Ludu, the Polish party newspaper. The passages selected for
reprinting blamed the trade unions for the trouble; passages
criticizing the Polish government, prominent in the original article,
did not appear here.
    ''The signing of the Gdansk agreement did not put an end to
tensions,'' one excerpt said.
    Zamyatin's comments and those in the press appear to be addressed to
two audiences. The Soviet leadership seems to be telling the Poles
that there is a limit to the Kremlin's tolerance and to be preparing
a case for intervention in the minds of the Soviet people in case it
should be needed.
    Steps have also been taken to prevent the unrest in Poland from
spreading to areas of the Soviet Union with close ties to Poland.
Polish periodicals, for example, have been removed from sale in the
Baltic republics of Latvia and Lithuania.
    The capital of Lithuania, Vilnius, which has a sizable Polish
population, has suddenly been ruled off-limits to foreigners. It lies
only 100 miles from the Polish border. Two Western correspondents who
were planning a trip to the city next week were told on Friday that
it was ''temporarily closed.'' No explanation was given.
    Diplomats report that their Soviet contacts seem to be assessing the
Polish situation ''calmly and with unusual objectivity,'' as a Middle
Eastern envoy put it. A West European said he had the impression that
the Kremlin was supporting a policy of accommodation with the trade
unions for now, in order to stave off further strikes and possible
violence, in the hope that the regime headed by Stalislaw Kania would
be able to crack down on them later.
    A similar policy of carrot followed by stick was adopted by two of
Kania's predecessors, Wladislaw Gomulka and Edward Gierek, when they
came to power in unsettled times.
    Western analysts believe Soviet restraint would evaporate the minute
the Kremlin leadership decided that events in Poland seemed a threat
to military control of the supply lines that run through Poland to
the front-line Soviet troop concentration in East Germany and
Czechoslovakia.
    ''There are certain icons that they will not allow to be smashed,''
one such analyst said. ''Three, I would say: the supremacy of the
Communist Party, membership in the Communist economic system, total
adherence to the Warsaw Pact.''
    The Russians seem particularly nervous about disunity within the
Polish leadership, which they see as a breach of party discipline.
    Some reports suggest that Brezhnev told Kania, when the two met in
Moscow on Oct. 30, that the Soviet Union would give the Polish
leadership until next summer to get its house in order. According to
these reports, the Kremlin said it would be looking for signs of
renewed party discipline.
    No confirmation is available. But it has been widely noted here that
the liberalization of 1968 in Czechoslovakia began in March and the
invasion by Soviet and other East European troops came in late
August. Clearly, the Soviet Union has shown more patience this time.
    ''Afghanistan and the Iran-Iraq war have given the Poles more
time,'' a Western diplomat said. ''If the Soviets' plate had not been
so full, they might have already made a move.''
    A Soviet official appeared to confirm this view in a comment to an
American acquaintance last week. The government is perfectly aware,
he said, ''that because of Afghanistan, the West would be far less
tolerant of an intervention in Poland than it might have been
otherwise.''
    
ny-1123 2200est
**********

a291  1910  23 Nov 80
AM-War Rdp, CORRECTION, a206,30
BAGHDADs: CORRECTS spelling of Palme's 1st name to Olof 3d graf,
updates with Palme meeting Hussein: Olaf Palme xxx of time.''
    Olof Palme of Sweden, a U.N. special envoy seeking ways to stop the
two-month-old war, met in Baghdad with Iraqi President Saddam Hussein
and other leaders after Iran rejected his mission as a ''waste of
time.''
    Meanwhile, an, 4th graf
    
ap-ny-11-23 2209EST
**********

n500  2147  23 Nov 80
 
BC-WAR-11-24
    By Douglas Watson
    (c) 1980 The Baltimore Sun (Field News Service)
    BAGHDAD, Iraq-Olof Palme, the United Nations envoy who is seeking a
cease-fire formula in the Iraqi-Iranian war, has acknowledged that
the two sides are diametrically opposed on some issues.
     Palme, the former Swedish prime minister, nevertheless suggested
that there are ''a number of practical possibilities'' for moving
toward an agreement to halt the two-month-old war.
    ''It is too early for me to go into the substance of any of the
issues, but I think there is an awareness on the two sides that this
war has had very detrimental effects for the region and for world
peace and that it should be ended,'' Palme told reporters Sunday.
    Both Iraq and Iran claimed successes in the fighting Sunday. Iraq
said paratroopers supported by waves of helicopter gunships smashed
an Iranian counterattack on the northern front, and Iran claimed that
its forces had finally crushed the Iraqi attempt to overrun the town
of Susangerd to the south.
    Palme made his comments about his peace mission after meeting for
more than three hours with Iraq's deputy prime minister, Tareq Aziz,
and Foreign Minister Saadoun Hammadi.
    Later, he met with Iraq's president, Saddam Hussein, for the first
time. The two may meet again Monday before Palme returns to New York
to report to U.N. Secretary-General Kurt Waldheim.
    Palme's peace mission began last week in Iran, where he met with
Iranian President Abolhassan Bani-Sadr and other officials - though
not with Ayatollah Ruhollah Khomeini - before being taken by his
hosts to the cities of Kermanshah and Dezful to view war damage.
    Palme, who said he could hear artillery fire on his visit to Dezful,
said it was a reminder that ''War is terrible. War means human
suffering and material destruction.''
     He said he does not plan to visit the Iraqi side of the front
because the Iraqi government has not asked him to. ''In both cases, I
have done what our hosts have decided to show us,'' he said.
     Palme declined to discuss his talks, saying only, ''I have come
very much to listen and to clarify the issues. . . . I have refrained
from making any value judgments.
     ''I have said from the beginning that the conflict is very grave
and it would be wrong to give any expectation of its rapid
resolution,'' he said.
     While Iraq says it would accept an immediate cease-fire, Iran has
repeatedly declared that it will never agree to one while Iraqi
forces remain on Iranian territory.
    Palme said he had no plans to meet with Yasser Arafat, thstine Liberation O-
rganization, who is also in Baghdad on a
peace mission. Palme said it was coincidence that the two were here
at the same time.
    ENDIT WATSON
    
ny-1124 0047est
**********

n513  2349  23 Nov 80
 
BC-THUNDER-3takes-11-24
    Companion story with 4WEAPONS
    By Thomas B. Edsall
    (c) 1980 The Baltimore Sun (Field News Service)
    WASHINGTON-In 1973, the pleasure among executives of Fairchild
Industries after winning the contract to build 600 A-10 Thunderbolt
aircraft for the Air Force was enhanced with the anticipation of a
potentially larger market: overseas sales.
    The aircraft, which could almost be described as a fast-firing 30 mm
cannon equipped with a jet engine and pilot, was designed for use in
a Pentagon scenario of a conventional, non-nuclear war in Europe.
    But officials of the firm smelled the opportunity to persuade not
only NATO countries, but also such nations as Iran, Brazil and Kuwait
that they could make use of an aircraft designed to destroy tanks,
trucks, personnel carriers.
    Edward G. Uhl, Fairchild president, was enthusiastic about the
possibility of producing a total of 2,000 A-10s, a bonanza for the
Maryland company and a boost to the job markets at the two Fairchild
plants in Hagerstown, Md., and Hauppauge, Long Island.
    For seven years, however, no foreign sales have materialized.
Foreign sales of U.S. military weapons grew in almost geometric
progression in the early 1970s, under the Nixon administration - $1.1
billion in 1970, $2.9 billion in 1972, $10.3 billion in 1974 - but
Fairchild could never break into this market which was producing
significant profits for competitors.
    The potential for foreign sales is a significant element in the
thinking of most major defense contractors building weapons initially
developed for the U.S. armed services. Overseas sales flourished
under the Nixon Doctrine of arming friends for regional defense, but
were curtailed early in the Carter administration.
    Now, the inhibitions against sales fostered by the Carter White
House are eroding. Once again, Congress is the central arena for
debate about overseas sales. And, once again, companies like
Fairchild are looking for congressional allies to help.
    Every year, Fairchild suggested to stockholders and the press that
other countries were interested - Korea, Pakistan, Australia, to name
a few. Last year China was added to the list, as Fairchild contended
that the A-10 would be ideal to protect that nation's 5,000-mile
border with the USSR.
    But the plane, according to specialists in foreign sales, has two
problems: it has a highly specialized ''mission'' - attack of tanks
and other vehicles in support of ground troops - and it is ugly.
    ''Foreign buyers want fast, supersonic, good looking airplanes,
something sexy,'' one person who finds himself in the middle of arms
negotiations said. ''Buying an A-10 is like taking your mother-in-law
to Las Vegas. You don't particularly want to show her off, and she's
going to take the fun out of any gambling you do.''
    Those involved in arms sales contend that only an air force
approaching the size of this country's can afford to acquire planes
as specialized as the A-10. Instead, most countries prefer aircraft
capable of performing high-speed air-to-air combat along with
lower-speed surface combat roles.
    This year, however, Fairchild is engaged in another gambit it hopes
- with some cooperation from the Congress and the United States Air
Force - will provide a new lever to open up the international market:
a two-seated version of the plane.
    The two-seated version, according to Fairchild, would broaden the
mission of the A-10. ''The single seater is basically a daylight
airplane,'' the firm noted. The two-seat version ''extends the A-10's
capabilities into night and adverse weather. The second seat more
than pays for itself with the increased effectiveness and
survivability of the aircraft,'' the firm said. In addition, the
second seat facilitates training of new pilots. However, the Air
Force has said bluntly, but politely, ''We don't want them.''
    During the closed-door mark-up session of the Defense Authorization
Bill in the House Armed Services Committee, Beverly Byron (D, Md.)
whose district includes the Fairchild plant and its Germantown, Md.,
headquarters, succeeded in adding a total of $50 million, a seemingly
token amount, to the $53 billion measure.
    Of the $50 million, $30 million would go towards the conversion of
30 A-10s into two-seat versions. The remaining $20 million would
begin financing research and development costs not only for a second
seat, but all the other changes required for night and foul-weather
combat.
    Ths amendment, according to some members of the committee, is the
first step in a major conversion of the aircraft that will cost
somewhere in the neighborhood of $700 million.
    MORE
    
ny-1124 0250est
**********

a033  0102  24 Nov 80
PM-Hostages,420
Iran Demands Yes or No, Says No Compromises or Negotiations
By The Associated Press
    Iran says the first U.S. reply to its conditions for the release of
the 52 American hostages is unsatisfactory, and it wants a ''clear
and explicit'' yes or no, reports from Tehran say.
    Iran's official reply to the U.S. response to the demands made by
Ayatollah Ruhollah Khomeini and the Majlis, Iran's parliament, was
delivered Saturday in Tehran to Algerian officials for transmission to
the United States. The Algerians took them to Algiers, but there was
no indication when they would be handed over to American officials
and whether the delivery would be made in Algiers or Washington.
    Secretary of State Edmund S. Muskie said last week that the United
States, in its letter delivered in Tehran Nov. 12, accepted the
Iranian conditions ''in principle.'' But other U.S. officials said the
letter explained the legal obstacles that would have to be overcome
in the courts before three of the demands could be met.
    These conditions were the release of more than $8 billion in Iranian
assets frozen by U.S. presidential order to insure the payment of
American claims against Iran, the cancellation of all such claims and
the return to Iran of the fortunes transferred abroad by the late
Shah Mohammad Reza Pahlavi and his closest relatives.
    Ahmad Azizi, public relations director of the prime minister's
office, said Sunday that Iran wants a clear answer - ''either positive
or negative'' - to the four conditions, the Greek Radio and
Television Service reported.
    ''We cannot accept the responses with room for compromises or
negotiations or anything like that,'' Azizi said. ''We just want clear
and very explicit answers.''
    Another official in Rajai's office said the U.S. response was
''neither explicit nor clear,'' and the Iranian government in its
reply asked or a ''positive or negative'' response, the official
Iranian news agency Pars reported.
    In Washington, State Department spokesman Joe Reap said the U.S.
government had received nothing official yet and was still in a
''wait-and-see attitude.'' He said there were no plans yet for anyone
to go to Algiers to get the Iranian reply.
    Abdel Karim Gherayeb, leader of the four-member Algerian delegation
to whom the Iranian reply was delivered, said he was taking it to
Algiers ''and we will see what happens next.''
    ''Whatever we do, we will do it fast,'' Gherayeb added.
    Today was the hostages' 387th in captivity since young Islamic
militants seized the U.S. Embassy in Tehran and its staff on Nov. 4,
1979.
    
ap-ny-11-24 0402EST
**********

a050  0259  24 Nov 80
PM-War Rdp,280
Iraq, Iran Both Claim Battle Victories
By ALEX EFTY
Associated Press Writer
    BAGHDAD, Iraq (AP) - Iran claimed its forces routed an Iraqi brigade
from the town of Susangerd on the southern war front, while Iraq said
its paratroopers and helicopter gunships smashed an Iraqi
counterattack at the northern end of the 300-mile invasion front.
    As the war entered its 10th week, Iran also reported Iraqi artillery
bombardment of besieged Abadan started new fires in the big oil
refinery on the Shatt al-Arab estuary.
    Pars, the official Iranian news agency, said President Abolhassan
Bani-Sadr told it Iranian troops killed 400-450 Iraqi troops,
destroyed 20 enemy tanks and captured seven others at Susangerd
Sunday.
    ''The infidels fled in chaos, leaving behind scores of burning
tanks,'' Pars said.
    Meanwhile, the Iraqi military command reported rocket-firing
helicopter gunships at the northern end of the war zone killed 50
Iranians and destroyed four tanks and three other vehicles in the
hills overlooking Iraqi positions at Gilan Garb. It said 95 Iranians
were killed in other fighting Sunday.
    Both sides reported an Iranian air attack Sunday on northern Iraq,
but Baghdad claimed only a civilian car was damaged and its driver
wounded. Iran claimed its planes destroyed an electric power station,
a chemical plant and a cement factory near Iraq's borders with Turkey
and Syria.
    Former Prime Minister Olof Palme of Sweden met in Baghdad with Iraqi
President Saddam Hussein, continuing a peace mission for U.N.
Secretary-General Kurt Waldheim. It was not known what Hussein told
him, but Iranian Prime Minister Mohammad Ali Rajai told him last week
in Tehran that his mission was ''a waste of time.''
    
ap-ny-11-24 0558EST
**********

n004  0609  24 Nov 80
 
BC-SUMMARY-3takes-11-24
    EDITORS:
    Following is a complete summary of today's FIELD NEWS SERVICE
report. The editors may be phoned at (312) 321-2801.
    
    MONDAY, NOV. 24
    
    
    BEHIND THE TOP HEADLINES
    
    UNDATED (Levey - Boston Globe - PHILOSOPHY) - NEWS ANALYSIS:
Underlying the personalities and nuts and bolts of the ascendency of
Ronald Reagan is a certain way of thinking, a broad conservative
political philosophy that represents the flip side of the New
Deal-Great Society agenda. (1,600) FNSPM
    
    UNDATED (Cooke - Boston Globe - ABOMB) - The American people need to
understand that nuclear weapons pose more of a threat than nuclear
power plants, says a team of MIT disarmament specialists. (1,100)
FNSPM
    
    ANKARA (Borowiec - Sun-Times - TURKS) - Turkey's new military rulers
start a complicated political and economic surgery on their
perennially sick country. The patient is now anesthetized but the
surgeons are not quite sure about the length or the success of the
operation. (850) FNSPM
    
    
    INTERNATIONAL
    
    BAGHDAD, Iraq (Watson - Baltimore Sun - WAR) - United Nations peace
envoy Olof Palme acknowledges that the two sides in the Iraq-Iran war
are diametrically opposed on some issues but says progress toward
peace can be made. (500) FNSPM
    
    NEW DELHI (Sabharwal - Baltimore Sun - CHARLES) - Britain's Prince
Charles will get a warm welcome when he arrives in India for a visit
with leaders of a country that was once the brightest jewel in the
crown. (400) FNSPM
    
    HONG KONG (Jeffries - Sun-Times - REFUGEES) - The Vietnamese
government is trying to clamp down on the mass exodus of boatpeople -
or so it says - but tens of thousands are still getting out of the
country and, as in the past, many are dying at sea. (1,050) FNSPM
    
    PEKING (Earnshaw - Telegraph - TRIAL) - A senior Chinese general
charged with conspiring to murder Chairman Mao and engineer a
military coup says in court that he was simply following the orders
of the late Defense Minister Lin Biao. (650) FNSPM
    
    PORT VILA, Vanuatu (Ward - Telegraph - ROBERT) - Diplomatic sources
say the government here will soon announce that the last French
resident commissioner will be banned from ever returning to the newly
independent South Pacific republic formerly known as New Hebrides.
(600) FNSPM
    
    
    DOMESTIC
    
    LOS ANGELES (Lewthwaite - Baltimore Sun - REAGAN) - Ronald Reagan,
whose election has roused public misgivings among black leaders, says
he hopes to do ''even better'' for blacks as president than he did as
governor of California. (750) FNSPM
    
    WASHINGTON (Barnes - Baltimore Sun - LIAISON) - A Washington
lobbyist who worked for Richard Nixon and Gerald Ford is offered the
sensitive job as Ronald Reagan's liaison with Congress. But Tom
Korologos balks at accepting the post, at least partly because of the
financial hardship it would entail. (700) FNSPM
    
    UNDATED (Farrell - Boston Globe - COURTS) - A law professor who has
studied judicial appointments says Ronald Reagan can be expected not
only to nominate conservative judges but to strengthen the courts so
they can reduce the ability of activist lawyers to ''misuse the
courts for ideological ends at taxpayer expense.'' (1,100) FNSPM
    
    WASHINGTON (Corddry - Baltimore Sun - 4WEAPONS) - The Western
alliance's hopes for countering Soviet tanks hang heavily on a plane
- the A-10 Thunderbolt - whose cost has more than doubled in a decade
but still is low by today's warplane standards. Fourth of a five-part
series. See THUNDER companion piece. (1,500) FNSPM
    
    WASHINGTON (Edsall - Baltimore Sun - THUNDER) - The potential for
foreign sales is a significant element in the thinking of most
contractors building weapons initially developed for the U.S. armed
services. Overseas sales flourished under Richard Nixon but were
curtailed early in the Carter administration. The trend may now be
reversing again. Companion story with 4WEAPON. (2,000) FNSPM
    
    MORE
    
ny-1124 0910est
**********

a080  0619  24 Nov 80
PM-War Rdp, 1st-Ld-Writethu, a050,390
Eds: new throughout with Palme leaving, other diplomatic missions.
By ALEX EFTY
Associated Press Writer
    BAGHDAD, Iraq (AP) - Iran claimed its forces routed an Iraqi brigade
from the town of Susangerd on the southern war front while Iraq said
its paratroopers and helicopter gunships smashed an Iranian
counterattack at the northern end of the 300-mile invasion front.
    U.N. special envoy Olof Palme, meanwhile, wound up a week-long trip
to the two warring Persian Gulf nations and left for Geneva,
Switzerland, en route to New York with no apparent hope for an early
cease-fire.
    As the war entered its 10th week, Iran also reported that Iraqi
artillery bombardment of besieged Abadan started new fires in the big
oil refinery on the Shatt al-Arab estuary.
    Pars, the official Iranian news agency, said President Abolhassan
Bani-Sadr told it that Iranian troops killed 400 to 450 Iraqi
soldiers, destroyed 20 enemy tanks and captured seven others at
Susangerd on Sunday.
    ''The infidels fled in chaos, leaving behind scores of burning
tanks,'' Pars said.
    The Iraqi military command reported rocket-firing helicopter
gunships at the northern end of the war zone killed 50 Iranians and
destroyed four tanks and three other vehicles in the hills overlooking
Iraqi positions at Gilan Garb. It said 95 Iranians were killed in
other fighting Sunday.
    Both sides reported an Iranian air attack Sunday on northern Iraq,
but Baghdad claimed only a civilian car was damaged and its driver
wounded. Iran claimed its planes destroyed an electric power station,
a chemical plant and a cement factory near Iraq's borders with Turkey
and Syria.
    Palme, a former prime minister of Sweden, left Baghdad after talks
with Iraqi President Saddam Hussein. It was not known what Hussein
told him, but Iranian Prime Minister Mohammad Ali Rajai told him last
week in Tehran that his mission was ''a waste of time.''
    Palme, spoke to reporters before his departure, apparently satisfied
with the outcome of his initial round of talks, but said it was too
early to evaluate prospects of ending the fighting. He also warned
that the conflict could spread to other parts of the region and
involve the great powers.
    He described his visit to Baghdad as a success because he had spent
a total of six hours in separate meetings with Hussein and Deputy
Premier Rariq Aziz.
    
ap-ny-11-24 0918EST
**********

a090  0716  24 Nov 80
PM-Hostages, 1st Ld-Writethru, a033,500
Eds: new throughout with delegation expected to meet with Algerian
foreign minister.
Precedes UNDATED.
    ALGIERS, Algeria (AP) - Iran has requested a further explanation of
the U.S. reply to Iran's conditions for the release of the 52
American hostages, informed sources in Algeria said today.
    The sources said an Algerian delegation that delivered the U.S.
response to Iran returned from Tehran on Sunday and was to meet today
with Algerian Foreign Minister Mohamed Benyahia.
    Iranian officials said Sunday that the U.S. reply was unsatisfactory
and that it wanted a ''clear and explicit'' yes or no, reports from
Tehran say.
    It was not known if the Algerian delegation was planning to go to
Washington or if the United States was planning to send a
representative to Algeria.
    The Algerians went to Iran Nov. 12 to deliver the U.S. response to
the four conditions. Algeria has represented Iran's interests in the
United States since diplomatic ties were broken between Washington and
Tehran.
    The Iranian conditions are the release of more than $8 billion in
Iranian assets frozen by U.S. presidential order to ensure the payment
of American claims against Iran, the cancellation of all such claims,
a pledge of U.S. non-interference in Iran and the return to Iran of
the fortunes transferred abroad by the late Shah Mohammad Reza Pahlavi
and his closest relatives.
    Deputy Secretary of State Warren Christopher went to the North
African nation Nov. 10 to deliver the U.S. reply.
    Secretary of State Edmund S. Muskie said last week that the United
States, in its letter delivered in Tehran, accepted the Iranian
conditions ''in principle.'' But other U.S. officials said the letter
explained the legal obstacles that would have to be overcome in the
courts before three of the demands could be met.
    Iran's official reply was delivered Saturday in Tehran to the
Algerians.
    Abdel Karim Gherayeb, leader of the four-member Algerian delegation,
said at that time that he was taking the reply back to his country
''and we will see what happens next.''
    ''Whatever we do, we will do it fast,'' Gherayeb added.
    According to reports from Terhan, Ahmad Azizi, public relations
director of the prime minister's office, said Iran wanted a clear
answer - ''either positive or negative'' - to the four conditions, the
Greek Radio and Television Service reported.
    ''We cannot accept the responses with room for compromises or
negotiations or anything like that,'' Azizi said. ''We just want clear
and very explicit answers.''
    Another official in Rajai's office said the U.S. response was
''neither explicit nor clear,'' and the Iranian government in its
reply asked or a ''positive or negative'' response, the official
Iranian news agency Pars reported.
    In Washington, State Department spokesman Joe Reap said the U.S.
government had received nothing official yet and was still in a
''wait-and-see attitude.'' He said there were no plans yet for anyone
to go to Algiers to get the Iranian reply.
    Today was the hostages' 387th in captivity since young Islamic
militants seized the U.S. Embassy in Tehran and its staff on Nov. 4,
1979.
    
ap-ny-11-24 1016EST
**********

a094  0747  24 Nov 80
PM-Jewels-Iran,190
Swiss Court OKs Sale of Diamonds Sought by Iran
    GENEVA, Switzerland (AP) - A Swiss court today lifted the legal
barrier it had imposed on a recently auctioned pair of diamond
earrings that the Iranian government claimed might be part of its
crown jewels.
    The earrings had been sold at auction here for $6.6 million to
unidentified buyers by the London-based house of Sotheby Parke Bernet.
Iran claimed the jewels might have been those of the former Iranian
Empress Farah Diba and thus rightfully belong to Iran, whose new
government ousted her late husband, Shah Mohammad Reza Pahlavi.
    Sotheby officials emphatically denied that the earringthe
other contested lots of jewelry, six of which were not sold during the
auction, had belonged to Farah Diba.
    But lawyers for the Iranian government secured a court order
attaching the 15 lots of jewels until proof of ownership was
unequivocally determined.
    Alexandre Davidoff, a Geneva lawyer representing unidentified owners
of the jewels, confirmed today that the attachment orders were
removed.
    He would not elaborate and lawyers for Sotheby's and the Iranian
authorities declined to comment.
    
ap-ny-11-24 1046EST
**********

a206  1030  24 Nov 80
BC-US-Hostages,220
No Quick Solution to Crisis Seen
Eds: AMer planned by 4:30 p.m. EST.
    WASHINGTON (AP) - Secretary of State Edmund S. Muskie said Monday he
sees no short-term solution for freeing the American hostages in
Iran.
    While the Carter administration waits for a new message from Tehran,
Muskie said, ''Our posture now is that we are holding and circling.''
    Iran's message, to be delivered through Algerian intermediaries, is
in response to U.S. proposals for breaking the deadlock, now in its
55th week.
    White House press secretary Jody Powell denied reports that an
Algerian delegation was on its way here with Iran's message.
    ''Those reports are not correct,'' Powell said.
    Muskie, in a brief exchange with reporters at the State Department,
indicated he did not expect a yes-or-no reply from Iran.
    ''We know they want some information external to the proposal
itself,'' he said. ''We know there are some five lists of information
in their equest.''
    The give-and-take through Algeria is over terms set on Nov. 2 by the
Iranian parliament. These include cancellation of all American claims
and return of the wealth of the late Shah Mohammad Reza Pahlavi.
    Muskie said ''each day's wait is a disappointment,'' but he could
not predict when the 52 Americans might be released. They have been
held in Iran since militants overran the U.S. Embassy in Tehran on
Nov. 4, 1979.
    
ap-ny-11-24 1329EST
**********

a218  1124  24 Nov 80
PM-Hostages, 2nd Ld, a090,210
Eds: updates with Muskie comment, W te House denial of reports that
Algerians on way to Washington.
    ALGIERS, Algeria (AP) - Iran has requested a further explanation of
the U.S. reply to Iran's conditions for the release of the 52
American hostages, informed sources in Algeria said today.
    In Washington, Secretary of State Edmund S. Muskie said he saw no
short-term solution for freeing the hostages: ''Our posture now is
that we are holding and circling.''
    The sources here said an Algerian delegation that delivered the U.S.
response to Iran returned from Tehran on Sunday and were to meet
today with Algerian Foreign Minister Mohamed Benyahia.
    Iranian officials said Sunday the U.S. reply was unsatisfactory and
that it wanted a ''clear and explicit'' yes or no, reports from
Tehran said.
    It was not known if the Algerian delegation was planning to go to
Washington or if the United States was planning to send a
representative to Algeria.
    The White House denied reports that the Algerians were on their way
to Washington. ''Those reports are not correct,'' White House Press
Secretary Jody Powell told reporters. ''They are not on their way here
nor do we know how they will want to handle this,'' he said.
    Powell said White House officials talked with the U.S. ambassador in
Algeria to try to learn how the Iranians want to handle the
transmittal of the Iranian reponse.
    The Algerians: 5th graf
    
ap-ny-11-24 1423EST
**********

a235  1337  24 Nov 80
AM-War Rdp, Bjt,560
Iran Claims to Have Inflicted Hundreds of Casualties
Laserphoto NY26
By ALEX EFTY
Associated Press Writer
    BAGHDAD, Iraq (AP) - Iran said it pressed counterattacks against
Iraqi positions all along the 300-mile war front, claiming hundreds of
Iraqi casualties in five cities. Both countries attacked each other's
oil installations.
    U.N. Special Envoy Olof Palme ended his peace efforts and left
Baghdad with no apparent expectation of a cease-fire between the two
nations. He held talks in Iran last week but was told by Prime
Minister Mohammad Ali Rajai that the effort was a ''waste of time.''
    Iranian President Abolhassan Bani-Sadr said Iranian forces repulsed
a new Iraqi offensive on the Iranian border city of Susangerd, 30
miles northwest of the Khuzistan provincial capital Ahwaz, according
to an interview at the front by the news agency Pars.
    Bani-Sadr was quoted as calling the two-day battle at Susangerd ''an
outstanding success ... An enemy brigade has been destroyed. Between
400 and 490 enemy troops were killed and there are many unclaimed
bodies on the battlefield,'' the official Iranian agency said.
    Pars said it interviewed Bani-Sadr at an undisclosed position near
Susangerd.
    Tehcian air strikes near Ahwaz, and 70 in strikes at Iraqi positions
near Dezful, 85 miles to the north. Both cities are virtually
surrounded by Iraqi troops.
    Eighty-five miles south of Susangerd, Iran said Iraqi artillery
sparked new fires at Iran's giant oil refinery at Abadan, on the
disputed Shatt al-Arab waterway, but Iran said its defenses pushed the
Iraqis a few more miles away from the city, killing or wounding 20.
Pars conceded seven Iranians dead.
    Iran has said it pushed the Iraqis five miles away from Abadan since
the offensive began Nov. 15. The city is still believed surrounded by
Iraqi troops and receiving supplies only by water.
    Pars said Iranian jetfighters bombed the Iraqi town of Fao, a key
pumping station south of Abadan at the mouth of the Shatt, setting oil
installations ablaze. There have been reports Iraq had resumed or was
about to resume pumping oil. Both combatants ceased oil production
shortly after the fighting began.
    Tehran Radio said Iranian jetfighters struck at Iraqi positions near
the occupied Iranian city of Qasr-e-Shirin, northeast of Baghdad,
killing 30 Iraqis.
    Pars also announced Iranian air attacks on the northern Iraqi
province of Mosul, claiming a petrochemical plant and other key
installations were hit. Iraq said 14 civilians were killed in the
attack and 39 people injured.
    Iraq's midday communique gave few details but reported 29 Iranian
soldiers killed compared to the loss of 27 Iraqis.
    Pars quoted an Iranian commanding officer at Sumar as saying 1,300
Iraqis had been killed there in the last few days. Western military
experts have said Iranian claims of Iraqi casualties in the
counterattack appear exaggerated, and added that Iraq appears to be
holding the positions it seized in the first few weeks of the war.
    In Damascus, the Syrian capital, Iran's Parliament Speaker Hashemi
Rafsanjani got a standing ovation when he declared Iran was ready for
a prolonged war. He said the United States had promised the Iraqi
President he would be the ''new shah'' if he made war on Iran.
    Rafsanjani also has visited Algeria and Libya and is expected to
meet with Palestine Liberation Organization leader Yasser Arafat in
Lebanon. Another Iranian envoy, the ambassador to Kuwait Ali Shams
Ardakani, sought political support in South Yemen, the only Marxist
state in the Persian Gulf.
    
ap-ny-11-24 1636EST
**********

n999  1339  24 Nov 80
. . .
a052
k q czcwyfbyl
 
BC-HOSTAGES 2takes
(Newhouse 003)
By JANE L. SEEGAL
Newhouse News Service
    WASHINGTON - It was ''the 200th day or the 300th day'' of her son's
captivity in Iran - some such unhappy anniversary - and as Dorothy
Royer approached her Houston home she saw a mass of reporters and
television equipment outside her front door.
    ''The news comes in on you like a mad spider,'' Mrs. Royer says. ''I
knew I couldn't get in the lout
the public attention she has received since her son was taken captive
just over a year ago. At first totally unavailable to the news media,
Mrs. Royer still keeps the press at arm's length, referring to
reporters only as ''they'' or ''them'' or ''another one'' during an
hour-long telephone conversation.
    But she consents to some interviews, as on her son William's 49th
birthday (Oct. 21), and she participates - always wearing a yellow
ribbon - in some ceremonies to keep the issue before the public.
    Many of the hostage families say they feel a need to keep the issue
before the public - to maintain pressure on Washington to resolve the
matter - and yet hate the loss of privacy, especially while they must
cope with their private pain.
    The feelings show in a love-hate relationship with the telephone,
the instrument through which the relatives might learn of their loved
one's fate - from the press, from the State Department or from
Tehran. The constant ringing is an annoyance, yet Susan Cooke of
Memphis, whose son Donald is a hostage, says: ''There are times when
I wish I had a backpack and could take the phone when we go out.''
    Getting an unlisted phone number is a last resort for those who find
they can't cope with the attention added to family pressures. The
hostage might be allowed to call home, but wouldn't know the new
number. Few letters seem to get through to the captives.
    The ambivalence extends beyond the news media to the public. Mrs.
Royer says she doesn't go out as much as she used to. In part, she
says, she stays home to be near the phone - but she also wants to
avoid being approached by strangers. At the same time, she says she
appreciates the emotional support of her neighbors.
    Mrs. Cooke, who has appeared on television ''a great deal,''
remembers ''being in a restaurant with two lady friends and having
the feeling someone was watching me. I turned around and saw someone
(staring). That kind of ruined my meal.''
    Wallapa Tomseth discourages conversation about the hostage crisis if
people recognize the name on her credit cards but don't know why they
do. Her husband Victor is a hostage.
    Still, Mrs. Tomseth says, ''I don't mind that, because people do not
intend to bother you. They'd like to help you.''
    Trying to maintain some feeling of control over their lives, the
families struggle to follow a normal routine. It usually fails. As
Dorothea Morefield of San Diego, wife of hostage Consul General
Richard H. Morefield, says: ''I still make the beds and my kids'
lunches, but my whole life has changed.''
    The marriage of one relative of a hostage - a relative who had given
many press interviews - is said to have broken up, but whether the
pressures of the past year were a key factor is unknown.
Understandably, short tempers and jealousy can grow out of the
attention focused on one family member at the expense of another.
    Another relative reportedly canceled a switch to a new job, wanting
to avoid a deluge of publicity.
    Most of the hostage families now know the symptoms of stress -
sleeplessness, muscle aches, an ulcer. Mrs. Cooke talks of
''clenching my teeth unconsciously until my jaws and cheekbones
ache.''
    There is the glaring irony of being a public figure, appearing on
television, yet unable to communicate with the one person with whom
you most want to speak. For some, publicity has worsened the pain of
not knowing how loved ones are being treated or when they will
return, of coping with the unspoken terror of their never returning
at all.
    The periods of heaviest press attention - on anniversaries of the
embassy takeover, or in conjunction with new developments in Iran or
political events at home - intensify personal and family pressures,
says psychologist Charles Figley, a Purdue University expert on
traumatic stress reactions. The Cookes received phone calls from 4:30
a.m. until 10:30 p.m. the Sunday before the Nov. 4 presidential
election. During ''low periods,'' Mrs. Cooke says, there may be only
one or two calls a day.
    Because of the constant phone calls and questions, ''many hostage
families have the sense that they can't avoid thinking about it, that
they can't (temporarily) put it out of their minds,'' says Figley.
RB     (MORE)
    
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a242  1437  24 Nov 80
AM-Arab Summit, Bjt,750
Serious Dissension Among Arab Leaders Prior to Summit
By NICOLAS B. TATRO
Associated Press Writer
    AMMAN, Jordan (AP) - With Arab ranks in serious disarray over the
Iraq-Iran war, Mideast leaders Monday faced three days of sensitive
decision-making on their anti-Israeli policy at the 11th summit of the
22-member Arab League.
    The Palestine Liberation Organization and three other Arab nations
opposed to the Eygptian-Israeli peace treaty have joined a
Syrian-engineered boycott of the summit, official Syrian sources said
late Monday.
    The PLO announced its decision after an executive committee meeting
in Damascus. The sources said the PLO and Syria would be joined by
South Yemen, Libya and Algeria and none would be represented in any
way at the summit, which starts Tuesday. Lebanon, which closely
coordinates with Syria, also announced it would not attend.
    The PLO announcement represented a victory for Syria's President
Hafez Assad in the growing rift among pro-Moscow hardliners,
Western-oriented moderates and oil-rich conservative states.
    The moderates and radicals are divided both on the Iran-Iraq war and
the approach to future negotiations on a settlement of the
Arab-Israeli conflict.
     ''Syria is attempting to show that it has a veto on Arab League
deliberations, particularly concerning the peace process,'' said one
well-informed, independent source who declined to be identified.
    The Syrian-backed boycott comes at a time when sources here suggest
the moderate majority is ready to consider a ''positive'' alternative
to the Camp David concept of limited autonomy for the Palestinians.
    Syria, which has signed a 20-year friendship pact with the Soviet
Union, is said to want Moscow included in any future negotiations.
    King Hussein of Jordan, host of the conference, has signaled he is
ready to explore a new peace process with U.S. President-elect Ronald
Reagan's administration.
    ''It is completely beyond understanding that the PLO elects to
boycott the Amman summit, which promises to discuss the Palestinian
cause and firm up a stragegy for liberating the Israeli-occupied
Palestinian homeland,'' said one Jordanian official who declined to be
identified by name.
    An initiatve by the moderate camp will be made more difficult by the
absence of the PLO, considered by all Arab states to be the only
legitimate represenative of the Palestinians.
    Despite the Syrian reports of an Algerian boycott, a Jordanian
official said Algeria's Benjedid Chadli decided to fly to Amman even
though his country is a member of the ''Steadfastness and
Confrontation Front'' along with Syria, Libya, South Yemen and the
PLO. The front was formed to oppose the Egyptian-Israeli peace
agreement.
    The decision to boycott was a sensitive one for the PLO. Syria
controls the PLO's only independent power base, in Lebanon, where
22,000 Syrian troops are stationed. However, oil-rich Persian Gulf
states provide the guerrilla organization with financial backing.
    Gulf nations control purse strings that could affect both Syria and
Arafat's guerrilla organization. Under previous summit commitments,
the oil powers agreed to pay $1.8 billion a year to Syria, Jordan and
the PLO as ''confrontation'' states with Israel.
    The Syrians called for a postponement of the summit, apparently
fearing Iraq's President Saddam Hussein would receive political
support from the majority of moderates and gulf states who are
silently backing Iraq's war efforts against Iran.
    The gulf states in particular are concerned Ayatollah Ruhollah
Khomeini's Iranian regime would stir unrest if Iran scored a victory
in the Persian Gulf war.
    The purpose of the summit is to adopt a plan for a short-term
political strategy to resolve the Arab-Israeli conflict and agree on a
long-term economic policy that will shift the focus of Arab
investment from the West to the Mideast.
    But the shadow of the Persian Gulf war and the new American
administration of President-elect Ronald Reagan are expected to
dominate the closed-doors talks.
    The Arabs will likely try to persuade Reagan to abandon the
U.S.-mediated Palestinian autonomy talks with Egypt and Israel in
favor of trying to arrange an all-party conference similar to the
Geneva Peace Conference of 1973, attended by both the United States
and the Soviet Union.
    ''It is premature to expect the Arab leaders to formulate a detailed
plan,'' said one conference official. ''They will try to evaluate and
endorse privately ideas, approaches and possible contacts.''
    
ap-ny-11-24 1737EST
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n064  1505  24 Nov 80
 
AM-IRAN-U.S.
Algeria Delays Advising U.S. on Iran's Latest Stand on Hostages
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Algeria has delayed informing the United States of
Iran's latest stand on resolving the hostage crisis because Algerian
leaders are temporarily occupied with deciding whether to attend the
controversial Arab summit meeting in Amman, informed diplomats said
Monday.
    The Algerian team, which spent more than a week in Tehran discussing
the American response to Iran's four conditions for the release of
the 52 Americans, returned to Algiers Sunday night with Iran's
request for detailed ''clarification'' of several points.
    The United States, eager to find out the specific contents of the
Iranian reply, was told by high-ranking Algerian officials that
Algeria had to decide Monday whether to attend Tuesday's Amman
summit. Syria, Libya and the Palestine Liberation Organization have
urged Algeria to boycott the meeting.
    Publicly, Iranian officials have complained that the United States
had been too vague in its reply to two of Iran's demands - for an
abrogation of claims and the confiscation of the property of the late
Shah Mohammad Reza Pahlavi.
    It is assumed here that the Algerians will soon be able to supply a
thorough review or Iran's views of the American message which
Secretary of State Edmund S. Muskie has said expressed acceptance in
principle the four Iranian conditions as a basis or ending the crisis.
    Monday, Muskie told reporters said that the United States had to
expect the situation to continue for some time. He said the
''signal'' he was receiving was that ''we are going to be holding for
a while.''
    He acknowledged that the American resposne was not a clear ''yes''
or ''no'' to the conditions. He said ''we gave them 'yes' or 'no' to
a number of conditions, and some 'maybes,' ''
    The United States is believed to have agreed to Iran's conditions
for issuing a pledge of noninterference in Iranian affairs and for
unfreezing the Iranian assets in the United States.
    But the ''maybes'' refer to the problems the United States has in
turning the more than $8 billion in assets over to Iran because of
the 300 court claims now pending in the United States against Iran.
The United States has also pointed out that the U.S. government has
no right to seize the shah's property and turn it over to Iran.
    Muskie said that the United States, although it has not heard from
the Algerians, had received indications that the Iranians had asked
for ''some five lists of information'' that apparently include the
''clarifications'' sought by Iran.
    Other officials said the reports of the ''five lists'' came from
non-Algerian diplomatic sources.
    Muskie said that Deputy Secretary Warren M. Christopher, who brought
the original American response to Algiers on Nov. 10, might return
there ''if it seemed useful,'' or if Algerians might come here.
    ''The situation is normal,'' Muskie quipped, ''You can never be
sure.''
    ''Our posture now is that we are holding, and circling,'' he said,
pending receipt of the Iranian message from the Algerian
intermediaries.
    
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a253  1543  24 Nov 80
AM-War Rdp, 1st-Ld, a235,320
Eds: Leads with additional Palme peace effort info.
By ALEX EFTY
Associated Press Writer
    BAGHDAD, Iraq (AP) - Special U.N. Envoy Olof Palme left here Monday
with no apparent expectation of an early cease-fire between Iran and
Iraq. Heavy fighting continued and the adversaries claimed strikes at
each other's oil installations.
    Iran said it pressed counterattacks against Iraqi positions all
along the 300-mile war front, and claimed hundreds of Iraqi casualties
in five cities.
    The former Swedish prime minister, concluding the first phase of his
peace mission, met with Iraqi leaders for talks he appeared to
consider productive. He then headed for Geneva en route to New York,
where he will meet with U.N. Secretary-General Kurt Waldheim. In Iran
last week, Palme was told by Iranian Prime Minister Mohammad Ali
Rajai that his effort was a ''waste of time.''
    Palme apparently made no headway in softening the combatants'
seemingly irreconcilable positions: Iran demands unconditional Iraqi
withdrawal from Iranian territory and Iraq says it will not pull out
until Iran recognizes Iraqi sovereignty over disputed border lands and
the 120-mile-long Shatt al-Arab waterway to the Persian gulf.
    In Geneva, Palme made clear he had taken only the first step in his
mission and suggested strongly he would return to Iran and Iraq.
    He said he would not predict an end to the conflict, but ''we
succeeded in our aim for this round'' which was ''to listen, to learn
and to clarify positions.''
    Before he left Baghdad, Palme told reporters he regarded his visit
as a success because he had spent a total of six hours in separate
meetings with Iraqi President Saddam Hussein and Deputy Premier Tariq
Aziz. ''I can assure you there was no aspect of the conflict that was
not discussed,'' Palme said.
    In an interview at the front by the official Iranian news agency
Pars, Iranian President Abolhassan Bani-Sadr said Iranian forces
repulsed a new Iraqi offensive on the Iranian border city of
Susangerd, 30 miles northwest of the Khuzistan provincial capital of 
Ahwaz.
    Bani-Sadr was, 4th graf
    
ap-ny-11-24 1842EST
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a267  1719  24 Nov 80
AM-Hostages, Bjt, 1st Ld Writethru, a0638,680
Eds: New information first 5 grafs, picking up 3rd graf prev.
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - An Algerian delegation will arrive here Tuesday
with Iran's reaction to U.S. proposals for freeing the hostages in
Tehran, U.S. and Algerian officials confirmed Monday night.
    State Department spokesman John Trattner confirmed the Algerian
diplomats would arrive Tuesday night for talks with State Department
officials on Wednesday. He refused to divulge any further details.
    In Algiers, the official Algerian news service said the delegation
will deliver an Iranian request for a further explanation of the U.S.
message to Iran earlier this month.
    The Algerian report said the delegation met Monday with Algerian
foreign minister Mohamed Seddick Benyahia after returning from Iran on
Sunday.
    Earlier in the day, Secretary of State Edmund S. Muskie said he does
not expect a quick breakthrough in efforts to free the 52 Americans
and that negotiations may be lengthy. ''Our posture now is that we are
holding and circling,'' he told reporters.
    Operating through, 3rd graf, deleting outdated 13th graf pvs.
    
ap-ny-11-24 2019EST
**********

n093  1903  24 Nov 80
 
AM-IRAN-U.S. 1stlead-Pickup7thgraf a064
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - An Algerian delegation is to arrive here Tuesday night
with Iran's official reply to United States proposals for freeing the
hostages, the State Department said Monday.
    John Trattner, the department spokesman, said the delegation would
hold talks with State Department officials on Wednesday. The
diplomats spent more than a week in Tehran discussing the American
response to Iran's four conditions for releasing the 52 hostages.
They returned to Algiers Sunday night with Iran's request for
detailed ''clarification'' of several points, which they will now
discuss with officials here.
    Publicly, Iranian officials have complained that the United States
was too vague in its reply to two of Iran's demands - an abrogation
of claims against Iran and confiscation of the property of the late
shah.
    Secretary of State Edmund S. Muskie, who has said the American
message expressed acceptance in principle to all four conditions,
told reporters Monday that the ''signal'' he was receiving was that
''we are going to be holding for a while.''
    He acknowledged etc, picking up 7th graf and eliminating graf12
(Muskie said that Deputy Secretary Warrenxxxcome here.)
    
ny-1124 2200est
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a019  2328  24 Nov 80
PM-Hostages, Bjt,590
Iran's Response on Releasing Hostages: No More than a Maybe
Eds: Top prospects uncertain
Laserphoto WX6
By DARRELL CHRISTIAN
Associated Press Writer
    WASHINGTON (AP) - The Carter administration, ''holding and
circling'' in the give-and-take over release of the 52 American
hostages, expects more questions than answers in the message arriving
from Tehran today.
    At best, officials here said, Iran's response to the U.S. response
to its demands is no more than a maybe.
    The reply is being delivered by a three-member Algerian delegation,
which returned from Iran on Sunday and was due in Washington late
today. State Department spokesman John Trattner said the group will
meet with U.S. officials Wednesday.
    The official Algerian news service said the Iranians are asking for
a further explanation of the U.S. position.
    ''We know they want some information external to the (U.S.) proposal
itself,'' Secretary of State Edmund S. Muskie said Monday. ''We know
there are some five lists of information in their request.''
    The Washington Post quoted unidentified officials today as saying
the Iranian prime minister's office is seeking details of benefits
that would flow to Iran after the hostages are released.
    That all means, Muskie said, no immediate breakthrough is likely in
the diplomatic effort to end the standoff now 387 days old.
    ''Our posture now is that we are holding and circling. ... We are
going to be holding for a while,'' he said.
    ''Each day's wait is a disappointment,'' Muskie added. ''I think it
would be very nice to expedite it, but I don't see any way of doing
so beyond what we are now doing. We don't waste time. We have to wait
for responses. This indirect method of communications is, of course,
time-consuming.''
    The negotiations over conditions set by the Iranian Parliament on
Nov. 2 are being conducted through the Algerians because diplomatic
relations between Tehran and Washington were broken last spring.
    The terms included a U.S. pledge not to interfere in Iranian
affairs, cancellation of all American claims against Iran, release of
more than $8 billion in frozen Iranian assets and return of the
property of the late Shah Mohammad Reza Pahlavi.
    Muskie said the U.S. response, delivered through the Algerians two
weeks ago, was ''yes or no to a number of conditions and some
maybes.''
    While he refused to elaborate, sources reported previously that the
administration agreed to a non-intervention pledge but said the
president had no authority to abrogate suits by American businesses,
some claiming part of the frozen Iranian assets. The United States
also claimed that most of the shah's wealth was in other countries,
the sources said.
    Muskie said last week the United States had agreed in principle to
the conditions, but Iranian officials Sunday called that
unsatisfactory.
    Still, both Muskie and White House press secretary Jody Powell said
the message being brought by the Algerians today is encouraging
because it indicates Iran is talking through diplomatic channels
instead of the press and seeking clarifications instead of issuing
ultimatums.
    ''That's the one positive element in it,'' Muskie said.
    It certainly was more positive than the statement of an Iranian
official who was quoted by Greek radio and television over the weekend
as saying Iran wanted a straight yes-or-no answer to its conditions.ns or anyth-
ing like that,'' said Ahmad Azizi, public
relations director for Prime Minister Mohammad Ali Rajai. ''We just
want clear and very explicit answers to the resolutions.''
    
ap-ny-11-25 0228EST
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n513  2335  24 Nov 80
 
BC-BAGHDAD-11-25
    By Douglas Watson
    (c) 1980 The Baltimore Sun (Field News Service)
    BAGHDAD-Few of the world's cities evoke such an aura of ancient
splendor and oriential mystery as Baghdad.
    Iraq's capital has been competing with Cairo and Damascus as the
center of political gravity in the Middle East for nearly 12
centuries, since the start of the Abbasid empire which brought riches
to Mesopotamia from as far away as India and the Mediterranean.
    But anyone recalling that glorious history is likely to be
disappointed by Baghdad today, which is, to the say the most for it,
an unimposing place.
    However, despite the war with Iran that shows no sign of stopping,
and the down at the heels look of Baghdad, this city is still the
capital of an extraordinarily wealthy country, one that experts say
has good reason to look forward to a future more glittering than its
remote past.
    Iraq has $34 billion in reserves, enough savings for it to continue
its war against Iran at the present level for at least a couple of
years - even if its ports remain closed and it were unable to export
the bulk of the 3.2 million barrels of oil a day Iraq normally pumps.
    Besides all its cash on hand, Iraq has an excellent credit rating
because its financial reserves shrink into insignificance when
compared with its vast oil reserves.
    This country has more untapped oil beneath its surface than any
other in the Middle Easoleum from Iraq can be counted on to assist this country-
 overcome
any economic problems created by the war.
    Iraq, however, is experiencing few economic difficulties,
considering that four of its seven oil refineries have been bombed
and its only outlet for oil exports now is the
6-million-barrels-a-day pipeline that extends to the Mediterranean
through Turkey.
    Diplomats in Baghdad say there actually are more consumer goods
available in Baghdad stores now than there were six months ago,
apparently the result of a government policy to reassure the public.
    There are no real shortages, though at the outbreak of the conflict
kerosene and bottled gas were in short supply.
    Thousands of foreign workers, including 400 Americans, fled the
country at the war's outbreak, but thousands more remain. For
example, several thousand civilians continue building railroad lines.
    Iraq could use some railroads to help haul the goods that now are
being trucked here, mainly from Jordan's port of Aqaba but also from
Kuwait.
    It may have to rely on truck transport for a long time. Even if the
Iranian navy were no longer a threat to shipping bound for Iraq,
extensive work will be required to reopen war-damaged Basra, Iraq's
chief port.
    Not only is the disputed Shatt al-Arab estuary cluttered with
shelled and abandoned ships, but it has been long without the regular
dredging it requires to be kept from filling up with silt.
    Even before the war, Baghdad was not a tourist center, this city
being much more popular with businessmen who can scent multi-million
dollar contracts from a comple of continents away.
    But no visitor to Baghdad can fail to be awed by the glimmering
beauty of its blue and aqua mosque domes and minarets.
    In contrast, though, with such gigantic, brightly painted Easter
eggs that the mosque domes resemble, the other buildings of Baghdad
seem downright dreary. The city appears almost as brown as the muddy
Tigris River running through it.
    It is a low-lying city with only a few tall buildings and, more
unfortunately, even fewer ruins from the ancient past.
    But for anyone who has walked through the filth and crowds of
Cairo's dilapidated neighborhoods to peer at the dusty mosques there,
the comparative cleaniness and modernity of Baghdad's boulevards may
be inspiring.
    The main reason this capital is not more ostentatious is that the
one-party socialist government is pumping most of the country's oil
income into basic development projects, alloting little for personal
frills.
     Iraq has a mandatory campaign requiring everyone to read. Virtually
no women here wears the veil, though a minority still wrap the black
chador around themselves. Some women here are even in uniform these
days.
    Iraq's strongman, President Saddam Hussein, has major construction
projects underway, including big hotels and other monuments to his
militant state.
    The aim is to have them completed in time for the 1982 conference
here of non-aligned countries, when Iraq expects its rising power to
win wider recognition and Hussein hopes to be seen as a leader of the
Third World.
    Presumably, the war against Iran will be over by then.
    ENDIT WATSON
    
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n515  2353  24 Nov 80
 
BC-5WEAPONS-1stadd-11-25
    x x x ONE TIME.
    There has therefore been a ''flip-flop,'' an Army officer says, as
Pentagon planning looks beyond the Central European front. The new
watchwords are ''rapid deployment'' and ''light weight.'':
    - The fiscal 1981 defense authorization bill provides $92.8 million
- almost five times the administration request - to accelerate
75-millimeter gun development, fabricate a test-model 90-millimeter
gun and new ammunition, and purchase for the Marines about 50
assorted armored vehicles of types now available. The off-the-shelf
vehicles would have lower performance than eventually wanted, but
could get the Marines started on some mechanized units for the
mid-1980s. The Senate Armed Services Committee endorsed development
of ''a family of advanced light weight armored vehicles'' for the
late 1980s.
    - The Marines, with $26 million earmarked for the interim vehicles,
will be looking at several foreign as well as domestic products, both
guns and troop carriers.
    - The Army chief of staff, Gen. Edward C. Meyer, has directed the
9th Infantry Division at Fort Lewis, Wash., to test organizational
and tactical concepts for a light-armored, air-transportable division.
    - The joint Army-Marine Corps development office in the Pentagon is
studying 53 designs of assault guns for the Marines' light tanks for
light divisions and armored cavalry units patrolling the Iron Curtain
in Europe, vehicles to mount anti-tank missiles, armored troop
carriers and related battlefield vehicles.
    - In an article in the independent Armed Forces Journal last
January, two retired officers, Army Lt. Gen. James F. Hollingsworth
and Marine Maj. Gen. Allan T. Wood, called for creation of a
joint-service armored corps ''with thousands of light armored
vehicles that can be transported in existing aircraft.'' Such a corps
of Marines, paratroopers and armored cavalry, they argued, could
match in travel time and firepower a Soviet buildup of lightly
armored airborne divisions in the Middle East.
    Plainly, there are elements of a strong consensus for a new and
different arsenal of light equipment, for forces that must be ready
for swift movement to any trouble spot where a president decides they
are needed. After Iran and Afghanistan, many projects that had been
simmering on the back burner were moved straight to the front.
    ''I believe we will see thousands of those things in the future,''
says Robert A. Moore, a deputy under secretary of defense for
research and engineering, who supervises tactical warfare programs.
Troops and equipment cannot be stationed everywhere that trouble may
erupt and affect American interests, he says. ''We must have more
mobile forces'' at home.
    Industry is keenly aware of the prospects. Six to 10 competitors are
believed to be in line. Some industry sources speculate that the
Marine Corps alone may need about 1,200 vehicles in a program that
could run to $500 million. The same speculation says the Army's
program would be a great deal larger, involving several thousand
vehicles for active and reserve forces.
    This is, of course, no more than speculation at the present time.
there is much more planning than there is hardware in hand or on the
order book. Further study, testing and cost-estimating could curtail
some of the larger enthusiasms. Percy A. Pierre, assistant secretary
of the Army for research, development and acquisition of weapons,
says a light tank with fast-firing cannon d cost $1 million a copy. This at lea-
st
raises a question whether simpler guns may at length be sought.
    Two vehicles with 75-millimeter guns are being examined at Aberdeen
Proving Ground, Md., before going on to the Army's Armor Center at
Fort Knox, Ky., for six months of additional tests.
    ''Nothing has been decided on what is actually going to be built,''
says Army Lt. Col. Terrell G. Covington, who, with a Marine deputy,
manages the joint effort in the Pentagon. Neither of the test
vehicles would be put into production as it now stands, he said.
    One of the vehicles is called HIMAG, for high mobility and agility.
It has been tested for high horsepower-to-weight ratios (45 HP per
ton) to determine how a light vehicle can use acceleration, speed and
agility to reduce exposure to enemy tank fire. It is now being used
to test gun and fire control systems. But, at weights of 32 to 45
tons, depending on equipment, it will remain a test bed.
    MORE
    
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a041  0212  25 Nov 80
PM-Arab Summit, Bjt,400
PLO Boycott Is Blow for Plans to Approach Reagan
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan (AP) - The Palestine Liberation Organization's boycott
of the Arab summit conference opening in Amman today was seen as a
blow to plans for King Hussein of Jordan to try to get Ronald Reagan
to change America's Middle East peace policy.
    Bowing to the Syrians who allow it to base most of its guerrillas in
Syrian-occupied Lebanon, the PLO announced Monday that Yasser Arafat
would join the leaders of Syria, Libya, and South Yemen in staying
away from the Arab League's 11th summit conference.
    Lebanon also was expected to join the boycott because of the 22,000
Syrian troops on its territory.
    Syria organized the boycott by hardliners in an effort to
demonstrate veto power over unified Arab plans, particularly
concerning the Arab-Israeli conflict. And since the Arab League has
designated the PLO the sole representative of the Palestinian people,
the PLO boycott of the meeting was considered a serious impediment to
plans for a united approach to the new U.S. administration.
    Reagan in a post-election statement said he would give priority
after taking office in January to a meeting with Hussein to talk about
peace in the Middle East. Hussein planned to urge the new president
to withdraw U.S. support from the Israeli-Egyptian peace negotiations
and work instead for a comprehensive peace agreement between Israel
and all the Arab. The Amman meeting was expected to weigh the
advisability of giving the king a mandate to speak on behalf of the
Arabs in general and the Palestinians in particular.
    The PLO decision to join the boycott may cost it the large subsidies
it gets from Saudi Arabia and other oil nations on the Arabian
peninsula. It may also suffer in Jordan; where Hussein has allowed it
to operate two military bases and increase the strength of the
Palestine Liberation Army.
    A PLO official sympathetic to Jordan said said he was ''ashamed and
dismayed'' by the boycott decision.
    ''Day after day, year after year, the supreme weakness of the Arabs
is gradually being exposed,'' he said. ''We seem to rejoice in
bickering and disunity. I am apt to believe that the real problem does
not rest with the Israeli enemy. Rather, the problem rests with us
Arabs - our inability to concur and our instinct for dissembling and
mismating.''
    Syrian President Hafez Assad also organized the boycott because he
feared that Iraqi President Saddam Hussein, his chief foe in the Arab
world, would get the meeting to back Iraq in its war with Iran.
    
ap-ny-11-25 0512EST
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a051  0317  25 Nov 80
PM-Arab Summit, 2nd Ld, a046,130
Eds: Leads with 3 grafs to update with Hussein urging Arab unity to
get Jerusalem from Israel; picks up 2nd graf pvs.
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan (AP) - King Hussein of Jordan opened the 11th Arab
summit conference today with a call to unite and save Jerusalem from
Israeli occupation. The Palestine Liberation Organization, Syria,
Libya, South Yemen and Algeria boycotted the session.
    ''The holy shrines of the Arabs and Moslems in Jerusalem are
beseeching you (to save them) ... to rally under the banner of
solidarity and brotherhood,'' the king told the conference at the
royal theater in Amman, 55 miles from Jerusalem.
    He exhorted the summit ''to honor the memory'' of wars waged by the
early Arabs to regain lost territory, to follow the Common Market's
example, ''whereby political differences have been dissolved by
economic solidarity,'' and to work for an immediate end to the
Iraq-Iran war.
    Bowing to, 2nd graf
    
ap-ny-11-25 0616EST
**********

a055  0344  25 Nov 80
PM-Quotes,150
Current Quotes
By The Associated Press
    ''I couldn't even get a chain saw to rescue my wife who was trapped
under a pile of logs. I had to work with my fingernails.'' - Alfonso
Mignone, a lawyer in Sant' Angelo Dei Lombardi, describing the
aftermath of the Italian earthquake that has claimed some 3,000 lives.
    ---
    ''Our posture now is that we are holding and circling. . . . We are
going to be holding for a while. Each day's wait is a disappointment.
I think it would be very nice to expedite it, but I don't see any way
of doing so beyond what we are now doing.'' - Secretary of State
Edmund S. Muskie, discussing the latest give-and-take over the release
of the hostages in Iran.
    ---
    ''My wife was putting belongings in boxes, but suddenly the fire was
everywhere. It was like a rainstorm of fire. We jumped into two cars
and left.'' - Stanley Hunter, one of thousands of southern
Californians chased from home by raging fires that scorched some
24,000 acres.
    
ap-ny-11-25 0643EST
**********

n543  0408  25 Nov 80
 
BC-GPOLL-11-25
    The following Gallup Poll is copyrighted and for use only by
newspapers that have arranged for its publication with Field
Newspaper Syndicate. Any other use is prohibited.
    THE GALLUP POLL
    RELEASE THURSDAY, NOVEMBER 27, 1980
    But Few Favor Use of Force
    PUBLIC FRUSTRATION SEEN
    OVER PLIGHT OF HOSTAGES
    By George Gallup
    PRINCETON, N.J. -- Frustration seems to be the dominant mood of the
American people as the Iranian hostage situation enters its second
year, yet relatively few favor the use of military force to free the
hostages.
    No broad public consensus is found on what steps the U.S. government
should now take to obtain the release of the 52 Americans held
hostage in Iran since Nov. 4, 1979. About one in three (30 percent)
of the ''informed public'' questioned in a recent Gallup Poll feels
our government should continue to negotiate, to ''wait it out,''
until the Iranians release the hostages. The underlying mood of this
segment of informed Americans is one of impotence and frustration
that our government is powerless to do anything more than it has done
already to effect the release of the hostages.
    A much smaller proportion, 13 percent of the informed public,
advocates the use of military force to get the hostages back, ''to
send in the Green Berets,'' in the words of one survey participant.
    Other measures suggested by those who are familiar with the hostage
situation and Iran's demands for their release include: putting more
pressure on Iran, short of military intervention -- 14 percent;
meeting Iran's demands -- 12 percent; not giving in to the demands if
it means compromising our national honor -- 12 percent.
    On Nov. 2, the Iranian Parliament set forth four demands for the
hostages' release: a pledge that the U.S. will not interfere in
Iranian affairs; cancellation of financial claims against Iran;
return of the late shah's property, and release of Iranian assets
held in this country. Although the U.S. government has agreed in
principle to Iran's demands ''as a basis for resolution of the
crisis,'' the details have yet to be ironed out. At this writing,
Prime Minister Mohammed Ali Rajai of Iran has asked the U.S. for
either a ''positive'' or ''negative'' response to Tehran's conditions.
    Coming as it did, two days bfore the U.S. general election, the
dramatic announcement of the Iranian demands was seen by many
observers to have clearly worked in GOP candidate Ronald Reagan's
favor. Public discouragement and frustration rose after it became
obvious that these demands would be difficult to meet. In addition,
an earlier survey showed that a substantial portion of the electorate
felt that President Jimmy Carter had attempted to use the hostage
situation to his political benefit.
    The vast majority (97 percent) of the American public is aware of
the hostage situation and three out of four (74 percent) can name one
or more of the demands made by the Iranian government for release of
the hostages. Following are the questions asked:
    ''Have you heard or read about the Iranian situation?''
    ''Do you happen to recall any of the demands the Iranian government
has made in exchange for the release of the hostages?''
    Those who named a demand (the ''informed public'') were then asked:
    ''What, if anything, do you think the U.S. should do about the
situation?''
    Here are the principal responses:
    .....WHAT SHOULD U.S. DO ABOUT HOSTAGE SITUATION?
    ...........(Based on ''informed public'')
    ..Continue negotiations; wait it out........30 pct.
    ..Apply more (non-military) pressure........14
    ..Use military force........................13
    ..Meet Iran's demands; return assets........12
    ..Don't compromise national honor...........12
    ..Deport Iranians in U.S.; swap for hostages 2
    ..Miscellaneous..............................4
    ..Don't know................................21
    ...........................................108 pct.
     Adds to more than 100 percent due to multiple responses.
    A final question in the survey series measured public attitudes
toward the combatants in the Iraq-Iran war. Although Iraq has been
consistently anti-American throughout the recent past, it is clearly
considered the ''lesser of two evils'' in the present war with Iran,
presumably because of Iran's holding of the American hostages.
    Here is the question asked and the responses of the informed public:
    ''In the war between Iraq and Iran, are your sympathies more with
Iraq or more with Iran?''
    ..................U.S. SYMPATHIES
    ............(Based on ''informed public'')
    ........More with Iraq.................27 pct.
    ........More with Iran..................6
    ........Neither country (volunteered) 49
    ........No opinion.....................18
    The results reported today are based on in-person interviews with
1,556 adults, 18 and older, conducted in more than 300
scientifically-selected localities across the nation during the
period Nov. 7-10.
    For results based on the full sample, one can say with 95 percent
confidence that the error attributable to sampling and other random
effects could be three percentage points in either direction. For
results based on the smaller ''informed'' sub-sample, a 4 percent
margin of error should be allowed.
    ENDIT GALLUP
    
ny-1125 0706est
**********

a064  0426  25 Nov 80
PM-War Rdp,410
Report Iraqi Reinforcements At Susangerd
    BEIRUT, Lebanon (AP) - Iraq shelled Susangerd during the night and
brought up reinforcements apparently in preparation for a drive to
occupy the Iranian border city before the beginning of the winter
rains, Tehran Radio said today.
    It also reported heavy Iraqi shelling of Gilan e-Gharb, 200 miles
north of Susangerd, on Monday night and artillery exchanges between
Iranian and Iraqi batteries in the Abadan area, 85 miles south of
Susangerd.
    The radio said Iran's Supreme Defense Council met and reported that
its forces ''scored considerable successes on the Susangerd and
Abadan fronts'' and in the region around Ahwaz, the capital of
oil-rich Khuzistan Province.
    Susangerd is 35 miles northwest of Ahwaz, and Iranian President
Abolhassan Bani-Sadr said Iranian forces killed between 400 and 450
Iraqi troops in repulsing an attack on the city over the weekend.
    Tehran Radio said 30 more Iraqis were killed in Iranian air strikes
near Ahwaz, and 70 in strikes near Dezful, 85 miles to the north and
midpoint of the 300-mile front the Iraqis established when they
invaded Sept. 22.
    Iran said more than 100 Iraqis were killed at the northern end of
the front Monday, and that its forces killed or wounded 20 others in
fighting near the refinery city of Abadan, at the southern end of the
front.
    Iran's Pars news agency said Iranian jets set oil installations
afire in the Iraqi port of Fao, at the southern tip of the western
side of the Shatt al-Arab estuary, Iraq's only waterway to the Persian
Gulf.
    Pars said the jets also hit a petrochemical plant and other
installations in the northern Iraqi province of Mosul. Iraq said 14
civilians were killed and 39 injured in the attack.
    The Baghdad command said 27 of its soldiers were killed Monday and
29 Iranian troops were killed.
    Western military analysts say Iranian kill claims appear exaggerated
and that Iraq seems to be holding the positions it seized in the
first weeks of the war.
    Olof Palme, Sweden's Socialist Party leader and U.N.
Secretary-General Kurt Waldheim's special envoy, on Monday completed
his first round of talks with Iraqi leaders in Baghdad after meeting
Iranian leaders in Tehran.
    He told reporters in Geneva, Switzerland, en route to New York, he
would not predict an end to the war, but said, ''We succeeded in our
aim for this round,'' which was ''to listen, to learn and to clarify
positions.''
    
ap-ny-11-25 0725EST
**********

n545  0429  25 Nov 80
 
BC-SUMMARY-3takes-11-25
    EDITORS:
    Following is a complete summary of today's FIELD NEWS SERVICE
report. The editors may be phoned at (312) 321-2801.
    
    TUESDAY, NOV. 25, 1980
    
    
    BEHIND THE TOP HEADLINES
    
    WASHINGTON (Curry - Newhouse - INDUSTRY) - The United States could
be on the edge of the greatest modernization of the workplace since
the conversion of military production to domestic output following
World War II. Although the roots of the push are in intense
competition from Japan, Germany and other efficient foreign
producers, the success of the effort may rest on federal tax policy.
(1,200) FNSPM
    
    WASHINGTON (Nyhan - Boston Globe - RIGHT) - Citing its success in
electing congressional candidates, direct mail expert Richard Vigurie
says the New Right is ''10 years ahead of the other side'' in
grass-roots lobbying, direct mail, use of religious broadcast outlets
and coordination of campaigns. (1,150) FNSPM
    
    CINCINNATI (Hersh - Sun-Times - FAUST) - Gerry Faust rates hosannas
in the highest from those who know him. He is devout enough to be a
Catholic priest but his calling is making kids into men. He is a son
of a football coach and a father confessor to dozens of football
players. Now he is head football coach at Notre Dame. (1,700) FNSPM
    
    
    INTERNATIONAL
    
    BONN (Piper - Baltimore Sun - SCHMIDT) - West German Chancellor
Helmut Schmidt sketches a foreign policy of continuity with continued
emphasis on participation in the Atlantic Alliance, on arms-control
negotiations and on detente with communist countries, particularly
with East Germany. (900) FNSPM
    
    BAGHDAD (Watson - Baltimore Sun - BAGHDAD) - Despite the war with
Iran and its down-at-the-heels look, Baghdad is still the capital of
an extraordinarily wealthy country. Consumer goods are readily
available and Iraqis have the money to pay for them. (800) FNSPM
    
    MOSCOW (Wade - Telegraph - TASS) - The Soviet news media mentions
the Polish labor movement Solidarity for the first time, saying that
Poland's defense interests could be affected if it calls a general
transport strike. (700) FNSPM
    
    PEKING (Earnshaw - Telegraph - GANG) - Two members of the ''Gang of
Four'' admit in court that they plotted against Communist Party Vice
Chairman Deng Xiaoping, by making false accusations to stop his
political promotion. (800) FNSPM
    
    PEKING (Earnshaw - Telegraph - LIN) - Nine years after the most
serious crisis in the history of the Peoples Republic of China,
authorities issue a full account of how Chairman Mao Tse-tung was
almost assassinated by his disciple, Lin Piao. (550) FNSPM
    
    LONDON (Erlandson - Baltimore Sun - BRITAIN) - The British
government, increasingly bedeviled by rising unemployment and
inflated public spending, unveils countermeasures that will affect
every household and business in Britain. (700) FNSPM
    
    NEW DELHI (Sabharwal - Baltimore Sun - INDIA) - Prime Minister
Indira Gandhi wins overwhelmingly wins a mini referendum on the
performance of her ten-month-old government. (200) FNSPM
    
    
    DOMESTIC
    
    WASHINGTON (Edsall - Baltimore Sun - TOXIC) - After making major
concessions to the chemical industry, the Senate passes legislation
setting up a $1.6 billion fund to finance the clean-up of toxic waste
sites but which provides nothing for individuals harmed by poisonous
chemicals. (850) FNSPM
    
    WASHINGTON (Matthews - Baltimore Sun - MATLOVICH) - The Air Force
agrees to pay $160,000 to Leonard Matlovich, an avowed homosexual
discharged in 1975, in return for Matlovich's agreement to drop a
court suit seeking reinstatement in the service. (650) FNSPM
    
    WASHINGTON (Seegal - Newhouse - HOSTAGES) - Public attention has
intensified the pressure on many of the 52 American hostages'
families trying to cope with personal grief and the uncertainty
surrounding a loved one's fate. But some hostages' relatives have
been able to use the attention as emotional support, a way to keep
distracted. (1,200) FNSPM
    
    WASHINGTON (Conlan - Newhouse - ECKHARDT) - Rep. Bob Eckhardt, one
of that rare breed of liberal Texas Democrats, looks back on his 14
years of battling for consumers - a battle that ended with his defeat
on Nov. 4. (750) FNSPM
    
    WASHINGTON (Poe - Newhouse - TRADE) - President-elect Ronald Reagan
is considering asking Congress to create a Department of Trade to try
to reverse the decade-long decline in U.S. exports, according to a
Reagan transition team member. (150) FNSPM
    
    MORE
    
ny-1125 0727est
**********

a070  0450  25 Nov 80
PM-Rafsanjani,100
URGENT
    BEIRUT, Lebanon (AP) - Gunmen hijacked three cars from the motorcade
of Iran's Parliament speaker in Beirut today, kidnapped their
occupants and then released them unharmed after an hour, a Lebanese
police spokesman said.
    The attack on Hashemi Rafsanjani's motorocade occurred when it
headed to the Parliament building in Beirut from the presidential
palace of Baabda, five miles east of the capital, the spokesman added.
    Among those held by the gunmen was Mohammed Ali Hadi, head of the
foreign relations committee of the Iranian Parliament, who is
accompanying Rafsanjani on his current tour of the four Arab
countries.
    
ap-ny-11-25 0749EST
**********

a077  0520  25 Nov 80
PM-Rafsanjani,1st Ld-Writethru, a070,270
URGENT
Eds: CORRECTS three cars to one car, gives description of assailants,
other new information thruout
    BEIRUT, Lebanon (AP) - Rightist Christian militiamen hijacked a car
from the motorcade of Iran's parliamentary speaker in Beirut today,
kidnapped its occupants and released them unharmed after an hour, a
Lebanese police spokesman said.
    Gunmen detained the aides accompanying Iranian parliamentary speaker
Hashemi Rafsanjani because they wore the battle fatigues of Iran's
Islamic revolutionary guards, police said. They offered no immediate
elaboration.
    The attack on Rafsanjani's motorocade occurred as it headed to the
Parliament building in the center of Beirut from the presidential
palace of Baabda, five miles east of the capital, the police spokesman
said.
    Among those held by the gunmen was Mohammed Ali Hadi, head of the
foreign relations committee of the Iranian Parliament, who is
accompanying Rafsanjani on his current tour of four Arab countries to
press Iran's case against Iraq in the 65-day-old war.
    The motorcade was passing a rightist militia checkpoint when
militiamen spotted two uniformed men in the rear car of the convoy,
the police spokesman reported.
    Militiamen of the Phalange party, Lebanon's leading rightist party
that fielded the largest Christian militia in the nation's 1975-76
civil war, took the rear car and its occupants to the party's military
headquarters in mostly-Christian east Beirut, the spokesman added.
    Clashes between the rightist Christians and Moslem leftists have
continued on a sporadic basis ever since the Lebanese civil war was
ended in 1976 by Syrian forces who remain in this Mideast nation
located at the eastern end of the Mediterranean Sea.
    
ap-ny-11-25 0819EST
**********

a094  0653  25 Nov 80
PM-Rafsanjani, 2nd Ld, a077,375
URGENT
Eds: Says ending hostage crisis in U.S. hands, further explanation of
kidnapping of Rafsanjani aides, new grafs 1-9
    BEIRUT, Lebanon (AP) - Iranian parliamentary speaker Hashemi
Rafsanjani said today Iran had done its part in solving the hostage
crisis by offering terms for their release and it was now up to the
United States to decide whether the 52 U.S. captives would be freed.
    Rafsanjani spoke at a news conference here as U.S. officials in
Washington awaited delivery of an Iranian note said to request
clarification of the U.S. reply to Parliament's terms for releasing
the hostages, held captive 388 days.
    ''The Majlis (Iran's Parliament) has made the decision on the
hostages,'' Rafsanjani said. ''The rest is up to the United States.''
    He did not elaborate and made no reference to the Iranian note, to
be delivered by Algerian intermediaries who represent Iranian
interests in Washington. But Rafsanjani continued:
    ''The hostages have been held by Iranian militant students in
retaliation for the American oppression and imperialism under the
shah's regime. The whole Iranian nation was held hostage by America
during the shah's regime.''
    On Saturday, the official Pars news agency reported Iran was asking
the United States for a ''positive or negative'' response to
Parliment's terms, approved Nov. 2: returning the wealth of the late
Shah Mohammad Reza Pahlavi; unfreezing Iranian assets in U.S. banks;
dropping lawsuits against Iran and pledging non-interference in Iran's
affairs.
    There are said to be legal problems in meeting all but the last
demand which were explained in the U.S. reply to Iran delivered to
Algerian intermediaries on Nov 10.
    At the news conference following a meeting with Lebanese
parliamentary speaker Kamel Assaad, Rafsanjani made no reference to
the detention of some of his aides earlier in the day by rightist
Christian militiamen. According to Lebanese police, the militiamen
hijacked a car from Rafsanjani's motorcade, seized its occupants and
released them unharmed after an hour.
    Gunmen detained the aides because they wore the battle fatigues of
Iran's Islamic revolutionary guards, police said. They offered no
immediate elaboration, but a spokesman for the Phalange party said the
occupants were held for questioning because they were suspected of
being leftist Moslem militiamen or Palestinian guerrillas.
    The attack: 3rd graf
    
ap-ny-11-25 0952EST
**********

n011  0724  25 Nov 80
 
PM-HOSTAGES
By WALTER TAYLOR
Washington Star Service
    WASHINGTON - There is no way the United States can give a simple yes
or no answer to Iranian demands for release of the American hostages,
Secretary of State Edmund S. Muskie said Monday, again predicting no
breakthrough in sight on the protracted impasse.
    Speaking to reporters at the State Department, Muskie said the
posture of the United States was one of ''holding and circling''
while it awaits a formal communication from Iran through Algerian
intermediaries.
    The message is expected to address the U.S. response to four Iranian
terms for release of the hostages, now in their 55th week of
captivity.
    On Saturday, a spokesman for Iranian Prime Minister Mohammed Ali
Rajai said Iran is seeking a clear positive or negative response to
the four conditions. The original U.S. reply, U.S. officials have
said privately, promises certain U.S. actions in exchange for release
of the hostages but notes legal and constitutional difficulties in
meeting all of Tehran's conditions.
    Carter administration officials said Monday that they had no formal
word on the contents of the Iranian response, which is to be conveyed
by a delegation from Algeria. Those intermediaries returned to
Algiers from Tehran Sunday night, and was on its way to Washington
Tuesday with the Iranian message, officials said.
    This negated the necessity for Deputy Secretary of State Warren
Christopher to return to Algiers, as he did in passing the original
U.S. response to the Algerian delegation that took it to Tehran,
officials said.
    It was understood that transmittal of the Iranian reply was delayed
because the Algerians were preoccupied with the controversy
surrounding plans for an Arab summit conference in Amman, Jordan.
    Syria is boycotting the summit, which opened Monday, and has called
on certain hard-line Arab states - Algeria among them - to join the
boycott. Algeria has made no decision on the Syrian request.
    Asked if it were possible to give Iran a simple thumbs-up or
thumbs-down reply if that is demanded, Muskie told newsmen Monday,
''If it had been, I suppose we might have considered doing so.''
    ''... We gave them 'yes' or 'no' to a number of conditions, and some
'maybes,' ''
    In exchange for releasing the hostages, Iran has demanded a U.S.
declaration of non-interference in Iranian affairs, release of $8 to
$12 billion in Iranian assets frozen by President Carter, the
guarantee of those funds against private American court claims and
return of the fortune of the former shah of Iran and his family.
    Muskie mentioned ''lists'' he said he understood would be included
in Iran's diplomatic note to the United States. Other U.S. officials
said later that the reference was to information received
unofficially last week that the Iranians had compiled a list or lists
of questions about the original U.S. response.
    The officials said, however, that it was unclear what specifically
these questions pertained to.
    
ny-1125 1022est
**********

a999  0948  25 Nov 80
. . .3.
           Entire Neighborhood Grapples With Devastation
 
    SAN BERNARDINO, Calif. - In the quiet foothill neighborhood of North
Park, where some 200 homes are in ashes, residents return to the
rubble and grapple with the devastation. Slug AM-Fires-Neighbors.
Developi  Housing Costs Boost Prices Again
 
    WASHINGTON - Prices jumped another 1 percent last month as rising
housing costs kept the annual inflation rate well above 12 percent.
Slug AM-Economy. Developing. Laserphoto Chart NY28
 
           HOSTAGES:  Iran-Algeria Discuss U.S. Action
 
    BEIRUT, Lebanon - The Iranian parliamentary speaker says Iran is
discussing with intermediary Algeria ways the United States might meet
terms for releasing the 52 U.S. hostages, but declines to say whether
the demands themselves are negotiable. Slug AM-Hostages. New
material, lead prospects uncertain. 650.
 
           HOSTAGES:  U.S. Expects Difficult Questions
 
    WASHINGTON - U.S. officials expect to be confronted with difficult
questions when Algerian diplomats arrive in Washington with the latest
Iranian response in negotiations for the release of 52 American
hostages. Slug AM-US-Hostages. Developing. Laserphoto Covering.
 
           IRAN-IRAQ:  Warring Nations Focus On Abadan
 
    BAGHDAD, Iraq - Iran claims to cut into Iraqi positions along the
entire 300-mile-long battlefront and crack the Iraqi siege of the
oil-refining city of Abadan. Iraq claims it holds back Iran's
counterattack and says Abadan is in a ''tightening stranglehold.''
Slug AM-War Rdp. Developing.
 
           UPPER VOLTA:  Coup In Poor African Nation
 
    ABIDJAN, Ivory Coast - The armed forces commander overthrows the
president of Upper Volta, one of the poorest countries in Africa. Slug
AM-Upper Volta. Developing. Laserphoto NY27, Map NY23.
 
           TODAY'S FOCUS:  Teens Fight In Legion Land
 
    N'DJAMENA, Chad - Chad's capital, remembered as Fort Lamy in the
days of the French Foreign Legion, is all but abandoned today, a
battlefield where teen-age boys dash from house to house, firing
automatic weapons at other young men they often cannot see. Slug
AM-Chad, by AP Writer Susan Linnee. New, will stand. 750.
 
           RATINGS:  Who Shot J.R.? TV's Biggest Hour
 
    LOS ANGELES - The much-ballyhooed episode of ''Dallas'' that
revealed who shot J.R. Ewing won the highest rating of any program in
television history, drawing viewers in 53.3 percent of the nation's
TV-equipped homes, figures from the A.C. Nielsen Co. show. Slug AM-TV
Ratings. New material, should stand. 550.
 
           THANKSGIVING:  Even Squatters Give Thanks
 
    NEW YORK - They call their tarpaper shack a home, their five
children healthy and themselves happy. Who's to say otherwise? Emuel
and Shirley Benton's cramped little hut, built and furnished with
other people's garbage, may not be much, but it's theirs. Slug
AM-Squatters Thanksgiving. New, will stand. 600.
    
ap-ny-11-25 1247EST
**********

a212  1050  25 Nov 80
AM-US-Hostages, Bjt,520
State Department Braces For Difficult Questions
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - The State Department braced for ''some difficult
questions'' from Iran on Tuesday as Algerian emissaries flew to
Washington with a new message from Tehran on terms for freeing the 52
American hostages.
    The Iranian message was being kept secret until it was handed over
Wednesday to Secretary of State Edmund S. Muskie. But administration
officials said they did not expect it amount to a yes-or-no response
to U.S. proposals flown to Algiers two weeks ago by Deputy Secretary
of State Warren M. Christopher.
    Instead, they said the Algerians - two ambassadors and the chief of
the country's central bank - probably were carrying requests for
clarification of the U.S. proposals, which Muskie said last week
agreed in principle with Iran's terms.
    The Algerians were to arrive late Tuesday night or early Wednesday.
    ''I would imagine we are going to have some difficult questions on
financial matters and timing,'' said one U.S. official, who asked not
to be identified.
    Iran's conditions, laid down by the Iranian Parliament, include
cancellation of American claims against Iran, including hundreds of
lawsuits, the freeing of more than $8 billion in Iranian assets and
return of the wealth of the late Shah Mohammad Reza Pahlavi.
    The fourth term, a pledge of non-interference in Iran's internal
affairs, apparently is the easiest to meet. President Carter and
Muskie have said since last summer that the administration recognizes
the Islamic revolution that toppled the U.S.-backed shah and has no
intention of getting involved in Iranian matters.
    However, officials here said the financial conditions are difficult
to satisfy and they were concerned about the Parliament's insistence
that the terms be carried out before the Americans are set free.
    The next step in the slow give-and-take with Iran through Algeria
could be Christopher's return to Algiers for more discussions. But
this seemed to depend on what the new Iranian message said.
    Muskie plans to hold a luncheon for the Algerians on Wednesday, but
Christopher will take charge of the talks, said John H. Trattner,
State Department spokesman.
    He said the three Algerians, Abdelkarim Gheraib and Rehda Malek, the
ambassadors to Tehran and Washington, and Mohammad Seghir Mostefai,
chairman of the Algerian central bank, probably would remain in
Washington for several days.
    The group delivered the U.S. proposals to Iran after Christopher's
visit to Algiers two weeks ago.
    Iranian parliamentary speaker Hashemi Rafsanjani said in Beirut,
Lebanon, on Tuesday that Iran is discussing with its Algerian
intermediaries ways in which the United States could meet the terms
for release of the hostages.
    He made no reference to the Iranian message being taken to
Washington and when asked if the Iranian demands are negotiable, said:
''The demands . . . are just demands and once they are met by the
United States, we shall give them the hostages.''
    Asked if release of the hostages is possible during the few weeks
before President Carter leaves office, Rafsanjani said: ''Only the
United States can answer this question. We have done all that we
can.''
    
ap-ny-11-25 1350EST
**********

a217  1145  25 Nov 80
AM-Economy, Bjt,800
Prices Continue Upward Spiral
By GLENN RITT
Associated Press Writer
    WASHINGTON (AP) - Consumer prices rose a full percentage point last
month, accompanied by a decline in take-home pay that posed new
headaches for inflation-weary Americans during the approaching holiday
season.
    The Labor Department reported Tuesday that the 1 percent jump in
October, fueled largely by ever-rising housing costs, brought the
annual rate of inflation to 12.6 percent, not far behind the 13.3
percent annual rate of 1979.
    For the first 10 months of 1980, inflation at the consumer level is
running at a compound 12.2 percent annual clip despite the severe -
but apparently short - recession.
    Economists said that with the possible exception of continued,
stable energy prices, little good news can be expected on the
inflation front in the coming months.
    The persistent pace of inflation gnawed further at workers'
paychecks, the department reported. Real spendable earnings declined
0.6 percent in October. Over the year, take-home pay has eroded by 6
percent, it said.
    The long-run impact of inflation is just as painful. What cost $100
in 1967 sold for $253.90 in October, before seasonal adjustment, the
department said. The 1 percent surge in consumer prices in October
matched the increase of the previous month.
    In October, the main villain was mortgage rates.
    Food prices rose significantly - 0.7 percent - but that was far less
than the 1.7 percent and 1.6 percent jumps in August and September,
respectively.
    At the same time, overall housing costs - which showed little change
from July through September - shot up 1.3 percent in October. That
was the largest one-month advance since a 1.8 percent surge was
recorded in June.
    This component was responsible for three-fifths of October's
increase in the Consumer Price Index.
    Even worse news is expected for homebuyers in coming months, said
Janet Norwood, commissioner of the Bureau of Labor Statistics.
    Mortgage rates, which surged by 1.9 percent last month, should
continue to accelerate as the Federal Reserve Board strives to dampen
inflation by limiting the money supply. These rates, which subsided
during the summer, have now reached 15 percent in many home markets.
October's consumer price index only begins to measure this surge.
    ''Certainly there is a great deal of concern about high interest
rates,'' Ms. Norwood said.
    With the nation's money supply accelerating rapidly, inflationary
expectations can be refueled, she cautioned. This would force the Fed
to further tighten credit and increase interest rates.
    ''I would not say we're back to the inflationary expectations (of
last winter), but it's the kind of thing that needs to be watched,''
Ms. Norwood said.
    The October moderation in food prices masks a disturbing upward
trend that should continue through the next six to nine months,
economists said.
    The Agriculture Department predicts that Americans will pay 10
percent to 15 percent more for food in 1981, particularly for beef,
pork, poultry, cereals and bread - the result of long-term grain
shortages.
    The relative relief last month was partly due to heavy slaughtering,
which led to price declines for beef, said Donald Ratajczak, a
Georgia State University economist.
    Energy prices, meanwhile, continued to hold relatively stable, due
to large oil supplies. But this can change dramatically. ''The big
question is what will happen in view of the Middle East
imponderables'' - particularly the Iraq-Iran war, said Ms. Norwood.
    The Labor Department's October report shows that:
    -The price of a home rose 1.5 percent, after increasing 1.3 percent
the month before;
    -Financing, taxes and insurance for a new home jumped 3.1 percent
after falling more than 2 percent in August and September.
    -Rents climbed 1 percent, matching September's increase.
    -Airline fares increased 1.5 percent as many families prepared for
long Thanksgiving and Christmas trips.
    -Food bought at grocery stores increased 0.8 percent, after surging
by a combined 3.4 percent in the two previous months. Food bought in
restaurants rose only 0.3 percent.
    Pork and poultry prices rose less than in September, while beef,
fresh fruits and vegetables declined in price. But sugar soared 4.6
percent; cereal and bakery products went up 1.4 percent.
    -Gasoline prices, after declining for five straight months, rose 0.3
percent.
    -Home heating fuel prices dropped 0.7 percent; gas and electricity
charges fell 0.4 percent.
    -New car prices declined 1.5 percent following a 1 percent increase
in September. Used cars, however, cost 5.5 percent more in October,
reflecting the fact that these vehicles are easier to finance.
    -Entertainment costs were up 0.5 percent, compared with a 1 percent
rise the month before.
    -Hospital rooms cost 1.8 percent more in October, while the cost of
a doctor's services rose by 0.7 percent.
    -New clothing and its upkeep increased in price by 0.5 percent,
following a 1.3 percent rise the month before. The slowdown reflected
early fall sales for women and girls.
    All these changes are seasonally adjusted, the Labor Department
said.
    
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a219  1206  25 Nov 80
AM-War Rdp,Bjt,540
Iran, Iraq Both Claim Successes In Abadan
By ALEX EFTY
Associated Press Writer
    BAGHDAD, Iraq (AP) - Iran claimed on Tuesday to have cut into Iraqi
positions along the entire 300-mile battlefront and to have cracked
the Iraqi siege of the oil-refining city of Abadan.
    Iraq, meanwhile, said it had held back Iran's counterattacks and
that Abadan was in a ''tightening stranglehold.''
    Iraq's Foreign Minister Saadoun Hammadi was quoted as saying life
was returning to normal in most of Iraq despite Iranian claims of
approaching victory and reports of heavy fighting inside Iran.
    The independent Kuwaiti newspaper Al-Qabas quoted him as saying
foreign firms that pulled employees out of Iraq when the war erupted
Sept. 22 were returning to work on the oil-rich nation's development
projects.
    Iranian President Abolhassan Bani-Sadr, meanwhile, told pilots at
Isfahan's air base in central Iran that his forces were ''approaching
the point of forcing the Iraqi government to concede defeat,'' the
official Pars news agency reported.
    It quoted Bani-Sadr as saying Iran had ''done the impossible,''
refuting claims it would not be able to fight adequately because of
the U.S. and European economic embargo imposed following the seizure
of 52 U.S. hostages in Tehran more than a year ago.
    In Beirut, Iran's parliamentary speaker, Hashemi Rafsanjani, said
Iran had taken the initiative along the entire warfront and that Iraqi
President Saddam Hussein ''is now cornered.''
    An Iraqi defense communique issued here said its troops had made a
''tightening stranglehold'' on Abadan, located at the southern edge of
the battlefront on the Shatt al-Arab estuary.
    It said the city's transportation and pipeline links with the rest
of Iran were severed by invading Iraqi forces and that a petrochemical
compound in Abadan was destroyed and burned by Iraqi helicopter
gunships in a mid-morning attack.
    But Iran claimed its ''soldiers of Islam'' broke Iraq's five-week
hold around the major oil refining city and pushed the enemy six miles
from Abadan's northern and eastern approaches.
    Pars reported Iraqi forces shelled Susangerd overnight and were
moving up reinforcements of infantry and armor, apparently preparing
for a drive to occupy the key highway town before the heavy rains
begin in early December.
    Iran claimed 30 Iraqi troops were killed and 20 wounded in fresh
assaults by helicopter-borne paratroopers on Iraqi positions near
Susangerd, which lies 30 miles west of Ahwaz, the capital of Iran's
oil-rich Khuzistan Province, the major theater of the 65-day-old war.
    Meanwhile, Iraq's defense communique said 43 Iranians were killed in
ground fighting and helicopter gunship attacks in the strategic
heights overlooking the Iraqi occupied areas at the Iranian border
towns of Qasr-e-Shirin, Sar-e-Pol-e-Zahab, Sumar and Gilan-Gharb,
while lie about 200 miles north of Susangerd and 120 miles northeast
of Baghdad.
    No independent verifications of any war claims are available because
both nations have barred foreign reporters from free movement along
the two sides of the border.
    Iraq says it will not stop fighting until Iran recognizes Iraqi
claims to disputed border lands and full Iraqi sovereignty over the
Shatt, Iraq's only outlet to the Persian Gulf.
    Iran has said it will not talk peace until Iraq evacuates all troops
from Iran.
    
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n055  1412  25 Nov 80
 
AM-IRAN
All Conditions Must Be Met Before Hostages Will Be Released
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    BEIRUT, Lebanon - The speaker of the Iranian parliament,
Hojatoleslam Rafsanjani, said here Tuesday that none of the 52
American Embassy hostages will be released until all four of Iran's
conditions are met.
    ''There is no way we will negotiate on our conditions, which are
just,'' Rafsanjani said. ''It is now up to the United States to meet
them.''
    The speaker, who is here on a tour of Arab countries attempting to
build support for Iran in the Persian Gulf war with Iraq, added that:
''If our conditions are met, the hostages will be released.''
    Rafsanjani's statements to reporters here Tuesday appeared to
indicate no significant change in the Iranian position, although
there had earlier been some suggestions from officials in Tehran that
some of the hostages might be released in groups if some of the
demands were met. The United States has said that this would be
unacceptable.
    The four conditions, laid down by Ayatollah Ruhollah Khomeini and
approved by the Majlis, or parliament, on Nov. 2 call for a pledge by
the United States not to interfere in the internal affairs of Iran;
the release of more than $8 billion in blocked Iranian assets; the
dropping of claims by American individuals and corporations against
Iran and the return of the wealth of the late Shah Mohammad Reza
Pahlavi and his family.
    The United States has said that it could meet the first two
conditions, but that the remaining two are beyond the government's
constitutional scope.
    Iranian Prime Minister Mohammed Ali Rajai has asked the United
States to clarify the message it sent to Tehran through Algerian
emmisaries. ''We asked the Americans to give a clear, precise
response,'' Rajai said.
    Rafsanjani arrived here Tuesday morning from Damascus, where he had
met with Syrian leaders. He visited Lebanese officials in the
presidential palace and the temporary government offices near the
embattled green line that separates Moslem-dominated west Beirut from
Maronite Catholic-controlled east Beirut.
    The visit was not entirely without incident. One car carrying his
aides and an Iranian television crew was taken into custody by
Christian Phalangist militiamen who control part of the road near the
parliament building. Their suspicions were aroused by the bearded men
dressed in military fatigues. The group was later released.
r
    
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n067  1533  25 Nov 80
 
AM-HOSTAGES
Algeria Brings Iran's Response to U.S. Propnard gwertzman
c. 1980 N.Y. Times News Service
    WASHINGTON - Algeria's intermediaries arrived in Washington Tuesday
afternols for
resolving the hostage crisis.
    The three-man Algerian team, which had spent more than a week in
Tehran conferring with Iranian officials, is due to meet Secretary of
State Edmund S. Muskie and other senior officials Wednesday when they
present the Iranian position officially to the Americans.
    In advancef this latest version of ''shuttle
diplomacy.''
    Diplomatic sources said that Iran had raised many detailed questions
about the American response to its four conditions for the release of
the 52 American hostages. State Department officials said they had
not yet seen these questions, however.
    On Nov. 2, the Iranian parliament made public its four conditions
for the hostage release: an American pledge of non-intervention in
Iranian affairs; the unfreezing of Iran's assets; the aborgation of
American claims against Iran; and the confiscation and transfer of
the wealth of the late shah.
    The United States responded through the Algerians 10 days later. The
American reply has not been made public, but according to Americited States acc-
epted the four conditions
in principle as a basis for negotiations but raised problems about
fulfilling literally the demands for renunciation of claims and
confiscation of the shah's property.
    The United States hasof its
assets as possible and, presumably, the questions raised by the
Iranians center on these.
    A major problem for all parties is that the Iranians, for their own
political reasons, refuse publicly to acknowledge the possibility of
''negotiations'' to resolve the hostage crisis.
    They insist that their demands must either be accepted or rejected
by the Americans. The speaker of the Iranian parliament, Ayatollah
Hashemi Rafsanjani, for instance, said in Beirut Tuesday that ''there
is no way we will negotiate on our conditions, which are just.''
    The United States, however, continues to speak as if everything is
negotiable. Washington refers to each side's documents as
''proposals,'' not as ''conditions'' or ''demands.''
    The Algerians, who are in the position of intermediaries, have said
virtually nothing about their role in the diplomacy. In advance of
their arrival, they sent word that they wanted as little to do with
the press as possible.
    State Department officials said that they did not know how long the
Algerian team would remain in Washington. It was possible that it
might convey the latest Iranian views and then wait for the American
response, or it might return to Algiers and await the American reply
there.
    The Algerian team is made up of Abdel Karim Gheraib, Algeria's
ambassador to Iran; Rehda Malek, the ambassador to the United States,
and Mohammed Seghier Mostefai, the chairman of Algeria's national
bank.
    Muskie will meet with them at lunch, but the actual substantive
discussions will be conducted by Deputy Secretary of State Warren M.
Christopher, deputy secretary of the Treasury, Robert Carswell,
Harold H. Saunders, assistant secretary of state for Near Eastern and
South Asian Affairs; and other aides.
    
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n070  1559  25 Nov 80
 
AM-EGY
Senate Review of Federal Land Management Policies Likely.
By ROBERT D. HERSHEY Jr.
c. 1980 N.Y. Times News Service
    WASHINGTON - James A. McClure, R-Idaho, who will take over the reins
of the Senate Energy Committee next January, said at a news
conference Tuesday that a top priority would be to review the
management of federal lands to encourage more energy and mineral
production on them. He predicted, however, that ''there will not be a
radical change'' in the committee's overall approach to the wide
range of issues before it.
    With respect to public lands policy, McClure said the emphasis would
be on what he said would be a more balanced administration of present
laws and regulations. Committee oversight would be aimed specifically
at speeding up the decision-making process among those who manage
federal lands.
    That also implied greater access to publicly owned acreage,
including the outer continentnal shelf, by energy companies and also
by timber, grazing and hunting and fishing interests.
     McClure, who called the news conference to describe the legislative
agenda in the new Congress, ruled out any quick action to dismantle
the Department of Energy, the three-year old agency that
President-elect Ronald Reagan so often criticized during his campaign.
    ''If we're talking about dismantling it immediately, then the answer
is no,'' said McClure, noting that many of its jobs, including the
administering of price and allocation laws still on the books, had to
be performed by some government body.
    For the coming months, ''or perhaps years,'' he added, the committee
would concentrate instead on redirecting department policies to rely
more on the free market to enhance production.
    On another major question, McClure expressed qualified support for
the fledgling Synthetic Fuels Corp., an important component in
President Carter's energy program. Although he said he wanted to
leave the Reagan camp free to carry through its own so far
unexpressed views about whether to amend the SFC's charter, McClure
said he had told aides of the president-elect that he hoped ''they
will go forward'' with the program under which the public corporation
may commit up to $20 billion over the next four years to stimulate
construction of commercial-scale synthetic fuels plants.
    When asked about reported warnings from Republicans to the
government not to rush to commit money to synthetic fuels projects
the new administration might not favor, McClure declared: ''I hope
they go slow on permanent commitments.''
     This was directed mainly at the Department of Energy, which is
conducting an interim synthetic fuels program while the SFC awaits a
declaration from the president, expected within the next six weeks,
that it is fully operational.
    SFC sources say privately that the corporation does not expect to
make any awards of its own before spring.
    On other issues McClure:
    - Repeated his strong support for building a nuclear breeder reactor
but said he would reserve judgement on the current proposal using a
Clinch River site in Tennessee until a presidential study group
issued its reports, due next March.
    - Said that a new look would be taken at the schedule for
deregulating natural gas prices in light of a doubling of oil prices
last year although he did not anticipate an early decision about what
to do.
    - Regarded as ''unrealistic'' any thoughts that the ''windfall
profits'' tax could be repealed, but continued to support efforts to
exempt or lessen the impact on those who receive small oil royalties
and, more problematically, independent producers.
    - Said that while he believed decontrolling gasoline prices was a
good idea, he was ''reluctant'' to press it as long as fighting
continued between Iraq and Iran for fear of setting off an
unjustified market ''panic.''
    - Would not seek to limit states' energy severance taxes as long as
they did not become exploitative.
    
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n071  1610  25 Nov 80
 
AM-PRICES
Consumer Prices up 1 Percent in October, Annual Rate is 12.6 percent
By STEVEN RATTNER
c. 1980 N.Y. Times News Service
    WASHINGTON - The renewed surge in mortgage rates helped push
consumer prices up by 1 percent last month, a 12.6 percent annual
rate, the government reported Tuesday.
    The increase matched that of September and meant that prices have
risen at a 12.2 percent rate thus far in 1980. By comparison, the
Consumer Price Index rose by 13.3 percent last year.
    The news was about in line with economists' expectations and led to
renewed predictions that consumer prices were likely to rise 1
percent or more monthly for at least the next six months.
    ''The inflation outlook is poor,'' said Lawrence G. Chimerine,
chairman of Chase Econometrics, a forecasting firm. ''We're expecting
about an 11 percent increase in the CPI next year,'' he said. The
last official administration forecast, issued in July, was for a 9.8
percent increase.
    The report illustrated the difficulties facing President-elect
Ronald Reagan, who has made an attack on inflation a central part of
his economic policies.
    Meanwhile, the Labor Department revealed that purchasing power of
Americans fell sharply last month. The 0.6 percent decline in what
the average pay check can buy followed a 0.2 percent drop in
September.
    The means that in the past year, take home pay adjusted for
inflation has dropped by 6 percent. Declines in purchasing power like
last month's reinforce fears of economists that consumers will be
unable to keep increasing their spending, increases which were
largely responsible for pulling the economy out of recession.
    The big news in the latest consumer price report was the jump in
housing costs. Up by just 0.7 percent in September, they rose by 1.3
percent in October.
    The largest part of the change was accounted for by financing costs.
After declining sharply in August and slightly in September,
financing, taxes and insurance charges rose by 3.1 percent in October.
    That turnaround reflects a reversal in mortgage rates which occurred
in late summer, when rates halted several months of decline and began
rising again.
    However, the CPI reflects mortgage rates at the time the loan is
actually made rather than when a commitment is given. Accordingly,
changes in mortgage rates generally take several months to appear in
the CPI.
    Since mortgage rates have continued to rise, that means that the
inflation rate is likely to be pushed up for at least the next two
months by increases in rates that have already occurred. Moreover,
the CPI is thought to overstate the size of these changes because it
calculates the change in financing costs as if every mortgage loan
were rewritten each month at the new rate.
    The index has also been criticized as assuming that consumers all
buy new houses each month. But Labor Department officials respond
that home purchases, which represents only 11 percent of the index,
are weighted, just like car purchases, for example, so that they
represent the average purchasing pattern of the public.
    The rise in housing costs last month was also due to a 1.5 percent
increase in house prices continuing a pattern of larger-than-average
increases.
    The good news in the CPI was that food prices rose by a
comparatively modest 0.8 percent, after being up 1.6 percent in
September. Meat, poultry, fish and eggs increased by 1.4 percent,
compared to 3.5 percent a month earlier and fruits and vegetable
prices fell by 1.1 percent, compared to a 3.8 percent increase in
September.
    In addition, most energy prices declined, including fuel oil, coal,
bottled gas and electricity. Gasoline prices, which had fallen for
several months, rose by a modest 0.3 percent.
    However with both food and energy, the outlook is less sanguine.
Food prices have been rising at the farm level and Howard Hjort,
chief economist at the Department of Agriculture, said Tuesday that
''world feed grain supplies will be depleted when the time comes to
harvest the 1981 crops,'' meaning little margin against another bad
harvest.
    As for energy, world oil prices have begun to rise again, as a
result of the war between Iraq and Iran. The Organization of
Petroleum Exporting Countries is scheduled to meet in Bali,
Indonesia, on Dec. 15 and is likely to approve a sharp hike in
official prices.
    Elsewhere in the CPI, price increases moderated. Apparel and upkeep
rose by 0.5 percent, compared to 1.3 percent. Transportation rose by
0.8 percent, compared to 1.3 percent, although that included a
decline of 1.5 percent in new car prices. Some economists questioned
that decline, maintaining it was based on ''quality adjustments''
made by the Bureau of Labor Statistics, rather than any drop in new
car prices.
    Finally, medical care rose by 0.8 percent, the same as in September
and entertainment was up by 0.5 percent, compared to 1 percent a
month earlier.
    
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n086  1803  25 Nov 80
 
BC-RESTON-COLUMN
Commentary
WASHINGTON: Reagan's Persistent Advisers
By JAMES RESTON
c. 1980 N.Y. Times News Service
     WASHINGTON - If Ronald Reagan fails to put together an effective
Cabinet and White House staff, it may be that he is getting so much
well-meaning but contradictory advice that he doesn't quite know how
to handle it.
    The poor man is being told by his Los Angeles buddies to stick to
the right with the folks who stuck with him in the past; he is being
advised by the Republican moderates to move to the middle and capture
the divided Democrats; and he is being warned by many of his
intellectual friends that he'll get clipped from both right and left
if he does. For Reagan all this must be vaguely confusing.
    There is now a whole library of reports on how to succeed in the
presidency, some of them written by failures. The Center for the
Study of the Presidency, in New York, has just produced a timely
handbook of advice on ''Organizing and Staffing the Presidency,''
which summarizes all the advice from the past, and explains how to
handle everything but human nature.
    From James Madison to Jimmy Carter, which is quite a distance, it
seems there is general agreement about the ends of good government.
In the ideal world they all desire, there will be agreement on the
general good, cooperation between the parties, understanding between
the White House and the Congress, even between the State Department
and the National Security Council. But on the means to these glorious
ends, there are wild and fundamental differences.
    Alexander Hamilton had some advice for Governor Reagan. For
effective administration, he said, there must be four conditions: (1)
a sense of coming together, of consensus, or what he called
''unity''; (2) tenure or duration, knowing you won't be ditched in a
hurry; (3) effective administration or support, and (4) ''competent
powers'' to direct, build and carry through programs. Unfortunately,
Hamilton didn't explain how all this was to be achieved.
    In more recent times, other observers have been more precise and
urgent. For example, Milton Eisenhower, Ike's favorite brother and
adviser, former president of Johns Hopkins University, put the
problem this way: ''We cannot wait,'' he said. ''The presidency has
become an impossible post. That changes are needed at once to make it
an effective position of leadership in the face of modern complexity
and enormity of government no one can deny ... ''
    President Eisenhower, believed in the chief-of-staff system in the
White House, with Sherman Adams and Gen. Walter Bedell Smith, but
Milton Eisenhower insisted on two executive vice presidents: one for
foreign affairs in the White House and one for domestic affairs. And
former President Ford agrees with him that a powerful White House
staff is not the answer to effective administration.
    ''Watergate was made possible,'' Ford says, ''by a strong chief of
staff and ambitious White House aides who were more powerful than
members of the Cabinet, but had little or no practical political
experience or judgment.''
     Reagan has clearly listened to part of this argument. He is not
going to have a Kissinger or a Brzezinski at the National Security
Council challenging the authority of the secretary of state, and
blowing off on ''Meet the Press'' on Sundays; but it is not at all
clear what kind of cabinet or White House staff Reagan really wants
to put in place.
    He has been talking vaguely about a cabinet that would have offices
in the Executive Office Building next to the White House, and serve,
like the British Cabinet, as a council of advisers, meeting every few
days on all questions of domestic and foreign policy. However, what
the secretary of interior would have to say about the hostages in
Iran or the Soviet invasion of Afghanistan, or what the secretaries
of state and defense would contribute to the debate on labor policy
or the price of soybeans is not clear.
    The Center for the Study of the Presidency, in its analysis of the
organizing and staffing of the presidency, seems to be saying that
the defense of the Republic and even of the few remaining free
nations of the world cannot be left to the president alone. His
authority must be protected and enhanced but it depends on a new
sense of cooperation between the political parties, between the
executive and legislative branches, and between them and the free
governments elsewhere in the world.
    Reagan is taking his time about picking his Cabinet and White House
staff, and even talking about a non-partisan foreign policy. In this
pause between election and inauguration, he is under severe pressure
and all the advice he's getting is not much help. He can either
organize his administration along party or ideological lines, or try
to put together a national government, appealing to the best in both
parties, or, what is more likely, compromise with everybody, and
establish a Cabinet and White House staff that satisfies nobody and
gives him time after the inauguration to think about all the advice
he has been given.
    
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n088  1825  25 Nov 80
 
AM-ARABS
Arab League Summit Convenes With Boycott by 5 Nations and PLO
By PRANAY B. GUPTE
c. 1980 N.Y. Times News Service
    AMMAN, Jordan - A conference of leaders of Arab League countries,
boycotted by five nations and the Palestine Liberation Organization,
opened here Tuesday with King Hussein of Jordan calling for an end to
divisiveness.
    The king renewed a promise to Palestinians that their lost homeland
would be recovered, but he warned that ''dispersed elements of
strength do not make strength.''
    Without mentioning Arabs who were absent - leaders of Syria, Libya,
Algeria, Lebanon, Southern Yemen and the PLO - he warned that Arabs
faced a severe threat from ''conflicts between Arab governments that
become deeper and lead to crisis usually because of failure to deal
with them quickly.''
    The conference, which is to last three days, was adjourned Tuesday
night for 24 hours to allow what a spokesman described as private
talks between leaders such as Crown Prince Fahd of Saudi Arabia,
President Saddam Hussein of Iraq, Sheik Jabar al-Ahmed al-Sabah, emir
of Kuwait, and King Hussein.
    There were reports that delegates would be sent to urge an
appearance by the absentees, who decided to boycott the conference
when their appeal for its postponement because of serious inter-Arab
conflicts over such issues as Iraq's war with Iran was rejected.
    According to conference sources and some European diplomats, Saudi,
Kuwaiti and Iraqi representatives were holding private talks about
the possibility of giving King Hussein an enhanced role as a
spokesman for the Palestinians, perhaps in a meeting he is expected
to have with Ronald Reagan after he takes office as president.
    The conference here is expected to affirm the participants'
opposition to the Camp David accords that led to the Egyptian-Israeli
peace treaty, and the informants said King Hussein might be asked to
explore in any talks with Reagan the possibility of a new forum for
negotiating Middle East settlements.
    The absence of the PLO and Syria and its allies was viewed by Arab
analysts as undermining the effectiveness of this conference. A major
goal was to agree on a fresh diplomatic initiative and to set forth
Arab principles against Israel over the Palestine issue.
    In rejecting the appeals of Syria and others for a postponement, the
so-called ''moderate group'' here - Jordan, Saudi Arabia, Kuwait and
Iraq - had said it was essential for Arab differences to be sorted
out and ''healed'' at a summit conference. The four countries were
appointed by the particiants to the conference, attended by 15 Arab
nations, to form a committee to draft the final statement.
    One of the proposals to be placed before the conference calls for a
joint Arab military authority to coordinate armed forces and
establish a joint military command. This has come up at previous
meetings but has never got anywhere.
    
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a281  1846  25 Nov 80
AM-Rafsanjani,240
Rafsanjani Aides Seized, Then Released
    BEIRUT, Lebanon (AP) - Christian militia seized aides to Iranian
parliamentary speaker Hashemi Rafsanjani as they rode in a motorcade
through Beirut on Tuesday, mistaking them for Moslem leftists or
Palestinian guerrillas. Police said they were released unharmed an
hour later.
    A spokesman for the right-wing Phalange Party said its militiamen
manning a road checkpoint in mostly-Christian eastern Beirut seized
the car's eight occupants - Rafsanjani aides and Iranian journalists -
because they mistook their olive-drab jackets for those worn by
leftists or guerrillas.
    The motorcade was heading from the presidential palace to the
Parliament building when the car, last in the motorcade, was stopped
and its occupants taken for questioning to the Phalange military
headquarters.
    ''When their identity was established, they were promptly released,
with an apology,'' said a party spokesman. ''They were driven out
from eastern Beirut and delivered to the Lebanese Parliament.''
    The incident prompted Lebanese police and Syrian peacekeeping forces
to throw a security net around the hotel where Rafsanjani is staying.
    Lebanon is the last country on a four-nation tour that also took
Rafsanjani to Algeria, Libya and Syria to push Iran's case in its war
against Iraq. Lebanon is neutral in the conflict; the others support
Iran.
    Rafsanjani was scheduled to return to Tehran Wednesday.
    
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a282  1850  25 Nov 80
AM-UN-Diplomatic Immunity,180
Resolution Condemns Violence Against Diplomats
    UNITED NATIONS (AP) - U.N. members approved a resolution Tuesday
condemning all acts of violence against diplomatic and consular
missions and representatives.
    The resolution originated with Denmark, Finland, Iceland, Norway and
Sweden, which put the question of diplomatic protection on the
General Assembly's agenda. It was sponsored by those five plus
Austria, Turkey, Egypt, Tunisia, Rwanda, Sierra Leone, the
Philippines, Argentina, Uruguay and Surinam.
    The General Assembly's legal committee, made up of all 154 U.N.
members, endorsed the resolution by unanimous consent and sent it to
the assemby, where it was sure of final adoption.
    Farideh Ahmadi of Iran, where 52 Americans have been held hostage
since the storming of the U.S. Embassy in Tehran on Nov. 4, 1979, said
the resolution did not reflect ''the reality of contemporary
bilateral relations.'' She said she had ''serious reservations'' about
it because, while upholding the rights and protection of diplomats,
it said nothing about the rights and protection of the countries in
which they serve.
    
ap-ny-11-25 2149EST
**********

a015  2301  25 Nov 80
PM-Hostages, Bjt,480
U.S. to Receive Iranian Response to American Terms
Eds: Top prospects uncertain
Laserphoto WX2
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - After a 16-day wait, the United States is
receiving an official Iranian message that could determine how far
apart the two countries are in negotiations for release of the 52
American hostages.
    A three-man team of Algerian intermediaries who arrived here Tuesday
night was to convey the Iranian position today to Deputy Secretary of
State Warren Christopher and other senior Carter administration
officials.
    ''We are certainly interested in getting the fullest possible
response from Iran,'' State Department spokesman John Trattner said
Tuesday. ''I think that's obvious.'' He said the Algerians probably
will remain in Washington several days.
    In advance of today's meeting, administration officials said they
expected ''difficult questions'' from Iranian authorities about an
American note delivered by the Algerians earlier this month in
response to the four conditions set by the Iranian Parliament on Nov.
2.
    The American message explained that restrictions on presidential
authority prevent the administration from fully meeting two of the
demands - cancellation of U.S. financial claims against Iran and
confiscation of the scattered wealth of the late Shah Mohammad Reza
Pahlavi.
    Iranian officials have indicated the explanations were not
persuasive and that further clarification is needed.
    ''I would imagine we are going to have some difficult questions on
financial matters and timing,'' said one U.S. official, who asked not
to be identified. Another official said he did not expect the
Iranians to demand a yes-or-no response.
    The two other demands - a pledge of non-interference in Iranian
affairs and release of more than $8 billion in frozen Iranian assets -
are not viewed here as major obstacles.
    The signals from Iran, however, have been conflicting.
    Various authorities in Tehran have described the U.S. response as
conciliatory and cool. Last week, a spokesman for Prime Minister
Mohammed Ali Rajai was quoted by Greek radio and television as saying
Iran wanted either a ''postive or negative'' response to its
conditions for releasing the Americans, now in their 389th day of
captivity.
    Two days earlier, however, the speaker of Iran's Parliament said the
United States had agreed in principle to the demands but that the
hostages would not be released until the terms are actually met.
    The Algerian intermediaries refused to comment on their mission as
they arrived at nearby Dulles Airport.
    In addition to Christopher, the envoys were to meet with Assistant
Secretary of State Harold Saunders, Deputy Treasury Secretary Robert
Carswell, State Department legal adviser Roberts Owen and Arnold
Raphel, an assistant to Secretary of State Edmund S. Muskie. Muskie
planned to host a luncheon today for the Algerians.
    
ap-ny-11-26 0200EST
**********

a053  0317  26 Nov 80
PM-Arab Summit,320
Arab Leaders, Minus Six, Avoid Political Issues at Summit
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan (AP) - The Arab summit, boycotted by five states and
the Palestine Liberation Organization, broke up into small groups
today to discuss ways to shift petrobillions from Western banks to
investment in the Mideast, sources said.
    ''The Arab leaders at the summit agreed that economic
interdependence can dissolve political differences and discourage
cantankerous bickering,'' an Arab League official said.
    One joint economic development program, introduced by Iraq and
discussed by League committees, envisages committing $15 billion over
the next 10 years, sources said.
    A broader economic integration program, prepared by the League,
involves a total of $62 billion in investment between this year and
the turn of the century, Jordan's information minister, Adnan Abu
Aoudeh, told reporters.
    The summit has approved three documents on economic action, and they
have been approved by a League foreign ministers' conference, ''which
included those who chose to boycott this summit,'' he said.
    The summit opened Tuesday. Fifteen members attended, and the
Palestine Liberation Organization, Syria, Libya, Algeria, South Yemen
and Lebanon boycotted the session.
    Syrian President Hafez Assad announced the boycott after he failed
to get the summit postponed. Sources said he wanted it deferred
because he feared the meetings would be used to obtain support for his
arch rival, Iraqi President Saddam Hussein, in Iraq's war with Iran.
    Most Arab states attending the summit support Iraq, a fellow Arab
League member, against Iran, which is predominantly Persian.
    Chadli Kleibi, the League's secretary general, said in his opening
speech he saw little change in U.S. policy on the Middle East under
President-elect Ronald Reagan.
    In a separate speech, Jordanian King Hussein deplored the
''deepening differences'' among Arab nations and called for unity to
free East Jerusalem from Israeli control.
    The boycott, however, clearly made any joint action impossible.
    
ap-ny-11-26 0616EST
**********

a061  0357  26 Nov 80
PM-War Rdp,600
Iran Warns Arabs Against Aiding Iraq
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - The Speaker of Iran's Parliament said today
recent air attacks on the Kuwaiti border were an Iranian warning to
the oil-rich Arab nations of the Persian Gulf against trucking
supplies to Iraq.
    The speaker, Hashemi Rafsanjani, also charged at a news conference
in Beirut that Saudi Arabia has pumped $10 billion worth of aid into
the Iraqi war effort, with U.S. blessings.
    His statements kindled new fears of expanded warfare in the Gulf
region where the United States and its Western allies have more than
50 warships ready to prevent interruption of oil supplies to the
non-communist world.
    Rafsanjani said Iran's air force was ordered to attack supply
convoys from Kuwait once they crossed the border into Iraqi territory
twice earlier this month.
    ''One or two Iranian rockets fell near the Kuwaiti Al-Abdali border
post with Iraq,'' Rafsanjani told the pro-Iranian newspaper As-Safir.
''We told the Kuwaitis this was unintentional ... But let it be a
warning to them.''
    Rafsanjani repeated the statement in a generalized form at the news
conference, which ended his tour of four Arab countries to plead
Iran's side of the war, which was in its 66th day today.
    Military communiques from Tehran and Baghdad reported fresh tank
battles in the southwestern Iranian oil province of Khuzistan, with
each side using fighter-bombers and helicopter gunships against the
other's position.
    The communiques also reported a paratroop battle for the strategic
highlands in western Iran, some 200 miles north of Khuzistan, raged
into a sixth day amid rival victory claims and hundreds of casualties.
    Iran's official Pars news agency spoke of fighting from
trench-to-trench for a chain of heights in the foothills of the Zagros
Mountain range that commands the closest highway routes from Iraq's
western bordern to the Iraqi capital of baghdad.
    The agency claimed five bluffs were captured by Iranian forces near
Sar-e-Pol-e-Zahab close to the Iraqi-occupied Iranian border town of
Qasr-e-Shirin, which controls a 120-mile highway to Baghdad.
    Iraqi communiques said enemy counterattacks were blunted at all
major war theaters.
    Today was the 389th day in captivity for the 52 American hostages in
Iran, and the U.S. government expected to receive Iran's reply to
America's response to the ransom demands.
    ''I would imagine we are going to have some difficult questions on
financial matters and timing,'' one U.S. official in Washington said.
    Iran's Parliament set four conditions Nov. 2: a U.S. pledge not to
interfere in Iran's affairs; cancellation of U.S. lawsuits against
Iran; freeing of $8 billion in Iranian assets frozen in U.S. banks;
and return of the wealth of the late Shah Mohammad Reza Pahlavi and
his closest relatives.
    The U.S. government delivered its response Nov. 12 through the
Algerian government, which represents Iran's interests in the United
States and is acting as intermediarty in the hostage negotiations.
    It was not made public but informed sources said it contained the
non-interference pledge and explanations of the ''legal difficulties''
in meeting the other conditions.
    Rafsanjani, in the As-Safir interview, was quoted as saying
President-elect Ronald Reagan was incapable of undertaking military
action to rescue the hostages.
    ''Our nation is ready to sacrifice to whatever limit,'' he said.
''If the United States wishes to test this, we shall oblige. But I
don't think the Americans are as crazy as to hurl themselves into
destruction.''
    He said Iran has proved in the war with Iraq ''we are not less
courageous or less powerful than the people of Vietnam, and
present-day America is not mighter than it was in Vietnam.''
    
ap-ny-11-26 0656EST
**********

a070  0458  26 Nov 80
PM-Hostage Wife,270
Wife Of Hostage Gets Unemployment Compensation
    ELYRIA, Ohio (AP) - The wife of one of the 52 American hostages is
entitled to unemployment compensation based on her claim that she lost
her job because her husband was sent to Iran, a Lorain County judge
has ruled.
    Common Pleas Judge Floyd D. Harris on Tuesday reversed a ruling of
the Ohio Bureau of Employment Services against Cherlynn Hall, whose
husband Joseph Hall, an Army warrant officer, is being held captive.
    Mrs. Hall had requested compensation on Aug. 6, 1979 while living in
this northern Ohio city with her parents. She has since moved to
Silver Spring, Md.
    The bureau denied her request last December, saying a person who
quits a job because of marital obligations is not entitled to
benefits. The bureau's review board later upheld that decision.
    Mrs. Hall had been employed by the Defense Intelligence Agency,
which oversees Defense Department intelligence operations, from 1975
to 1979 in Athens, Greece, where her husband was stationed with the
Army.
    They were called back to Washington, and Hall was sent to Iran
without his wife in August 1979.
    She was forbidden to accompany her husband because of a presidential
decree banning U.S. civilians from traveling to Iran.
    Her lawyer Robert S. Jones, of Cleveland, said Mrs. Hall was
required to resign if she did not accompany her husband.
    ''She was required to resign and then prohibited from doing what the
resignation was intended for, which was to maintain a marital
obligation,'' Jones said.
    Mrs. Hall, who did not appear in court, was unavailable for comment.
    
ap-ny-11-26 0758EST
**********

a080  0550  26 Nov 80
PM-Hostages, Insert, a015ry met:
Inserts new grafs 12-14 with new Rafsanjani comments
    The speaker, Hashemi Rafsanjani, said in a Beirut newspaper
interview today that President-elect Ronald Reagan was incapable of
undertaking military action to rescue the hostages.
    ''Our nation is ready to sacrifice to whatever limit,'' he told the
pro-Iranian newspaper As-Safir. ''If the United States wishes to test
this, we shall oblige. But I don't think the Americans are as crazy
as to hurl themselves into destruction.''
    He said Iran has proven in its war with Iraq that ''we are not less
courageous or less powerful than the people of Vietnam, and
present-day America is not mightier than it was in Vietnam.''
    The Algerian: next to last graf
    
ap-ny-11-26 0850EST
**********

a081  0555  26 Nov 80
PM-War Rdp, 1st Ld, a061,210
Eds: New grafs 1-4 Iran Claims New Air Raids
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran claimed today its fighter-bombers
attacked the Iraqi oil center of Kirkuk, destroying two pumping
stations and setting nine storage tanks ablaze in the city 150 miles
north of Baghdad.
    There was no immediate comment from Iraq on the Iranian claim. Last
week there were reports that Iraq had resumed pumping crude oil from
Kirkuk fields to a Mediterranean terminal in neighboring Turkey.
    The Iranian communique said the blazing oil tanks contained jet fuel
and that the Iranian jets also damaged pipeline facilities and an
Iraqi air base south of Kirkuk.
    Tehran radio also reported a raid by two Iraqi MiGs on the Iranian
city of Khorramabad that left the city's main square littered with
bodies. The official Iranian news agency said a hotel and several
shops were hit in the Iraqi attack on the city 130 miles east of the
Iran-Iraq border. No count of casualties was given.
    In Tehran, the speaker of Iran's Parliament said recent Iranian air
attacks on the Kuwaiti border were an Iranian warning to the oil-rich
Arab nations of the Persian Gulf against trucking supplies to Iraq.
    The speaker, Hashemi Rafsanjani, also charged at a news conference
in Beirut that Saudi Arabia has pumped $10 billion worth of aid into
the Iraqi war effort, with U.S. blessings.
    His statements: 3rd graf
    
ap-ny-11-26 0855EST
**********

n004  0632  26 Nov 80
 
PM-HOSTAGES
By WALTER TAYLOR
Washington Star Service
    WASHINGTON - An Algerian delegation arrived in Washington Tuesday
night seeking a clarification of U.S. readiness to meet Iran's four
demands for release of the American hostages.
    U.S. officials were not expecting the delegation, which is serving
as an intermediary between Washington and Tehran in the hostage
matter, to deliver a take-it-or-leave-it message from Iranian
authorities.
    Some Iranian officials, including Prime Minister Mohammed Ali Rajai,
have demanded such a U.S. response in recent public statements.
    ''There may eventually be an ultimatum,'' one U.S. official said
Tuesday, ''but we're not at that point yet. Let's hope we never get
to that point.''
    Rather, the Algerians were expected to deliver a diplomatic note
from Tehran closely questioning the legal and constitutional
difficulties the Carter administration has cited as reasons that it
cannot fully meet the terms set down by Iran's spiritual leader, the
Ayatollah Ruhollah Khomeini, and adopted earlier this month by the
Iranian parliament.
    Those obstacles, according to U.S. officials, were outlined in a
formal reply to the terms delivered by the Algerians to Tehran two
weeks ago.
    Unofficials sources knowledgeable about the give-and-take between
the two governments indicated this week that Iran is incredulous
about the difficulties outlined in the U.S. response and in an
explanation conveyed by the Algerian delegation.
    The precise language of the U.S. response has been kept secret.
    The Algerians, led by the ambassador to Washington, Redha Malek,
were to meet with State Department officials Wednesday to go over the
new Iranian message. On the basis of those discussions, which were
likely to cover more than one day, it was likely that another U.S.
note would be sent to Iran, U.S. officials said.
    Secretary of State Edmund S. Muskie is to have lunch with Malek and
the other two members of the delegation, Algeria's ambassador to
Tehran, Abdelharim Gheraib, and the chairman of the Central Bank of
Algeria, Mohammad Seghir Mostefai.
    Later, the three are to have further substantive discussions with
Deputy Secretary of State Warren M. Christopher and other U.S.
officials specializing in the hostage crisis, including Deputy
Treasury Secretary Robert Carswell; Harold H. Saunders, who heads the
State Department's Near East bureau; Roberts Owen, the department's
top lawyer; and Arnold Raphel, an assistant to Muskie.
    Among the Iranian terms for release of the hostages is the
protection of Iranian assets against private court claims, including
those that might be brought in the future by the 52 American hostages
themselves, following their release. About $8 to $12 billion in
Iranian assets were frozen by President Carter in the wake of the
hostage seizure 55 weeks ago.
    U.S. officials have said this condition poses several legal problems
for Carter, as does another calling for return of the wealth of the
former shah of Iran and his family. The remaining two conditions,
which Carter has said publicly that he would meet in conjunction with
release of the captives, involve unfreezing of the Iranian assets and
a U.S. declaration of non-intervention in Iranian affairs.
    Another issue separating the United States and Iran in the
cumbersome discussions through the Algerians is the question of
timing: the Iranians have said all four demands must be fulfilled in
advance of a hostage release; the United States is seeking a package
deal, in which U.S. actions would be in the context of release of all
52 of the captives.
    
ny-1126 0935est
**********

a093  0659  26 Nov 80
PM-Hostage Wife, 1st Ld-Writethru, a070,270
Eds: Inserts new 3rd graf on amount of money and subs 6th, 7th and
8th grafs with 2 new grafs to clarify why she had to resign.
    ELYRIA, Ohio (AP) - The wife of one of the 52 American hostages is
entitled to unemployment compensation based on her claim that she lost
her job because her husband was sent to Iran, a Lorain County judge
has ruled.
    Common Pleas Judge Floyd D. Harris on Tuesday reversed a ruling of
the Ohio Bureau of Employment Services against Cherlynn Hall, whose
husband Joseph Hall, an Army warrant officer, is being held captive.
    It could not immediately be learned how much money she would get.
    Mrs. Hall had requested compensation on Aug. 6, 1979 while living in
this northern Ohio city with her parents. She has since moved to
Silver Spring, Md.
    The bureau denied her request last December, saying a person who
quits a job because of marital obligations is not entitled to
benefits. The bureau's review board later upheld that decision.
    Mrs. Hall had been employed by the Defense Intelligence Agency,
which oversees Defense Department intelligence operations, from 1975
to 1979 in Athens, Greece, where her husband was stationed with the
Army.
    Hall was told he would be transfered to Iran, and the couple was
temporarily called back to Washington. Her lawyer Robert S. Jones, of
Cleveland, said Mrs. Hall was required to resign her job in Athens
once her husband was transfered elsewhere.
    But when Hall was sent to Iran in August 1979, Mrs. Hall was
forbidden to go along because of a presidential decree banning U.S.
civilians from traveling to Iran.
    ''She was required to resign and then prohibited from doing what the
resignation was intended for, which was to maintain a marital
obligation,'' Jones said.
    Mrs. Hall, who did not appear in court, was unavailable for comment.
    
ap-ny-11-26 0959EST
**********

a097  0733  26 Nov 80
PM-War Rdp, 2nd Ld, a081,290
Eds: New grafs 1-8 detail on air raids, rephrasing
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran claimed today its fighter-bombers
launched the biggest air attack of the war, destroying two pumping
stations and setting nine storage tanks ablaze in the Iraqi oil center
of Kirkuk 150 miles north of Baghdad.
    Iraq's military command confirmed that Kirkuk was raided and said
three Iranian jets were shot down. Baghdad did not mention damage to
oil facilities, however, and reported only that nine Iraqis died and
38 were wounded by Iranian air raids north of Kirkuk.
    In Beirut, the speaker of Iran's Parliament said recent air attacks
on the Kuwaiti border were an Iranian warning to oil-rich Arab
nations against providing supplies to Iraq.
    The Iranian communique described the Kirkuk attack as the heaviest
air raid mounted by the Iranian air force since the Persian Gulf war
began on Sept. 22. Tehran radio reported the blazing Iraqi oil tanks
contained jet aircraft fuel and said the air attack also damaged
pipeline facilities and an Iraqi air base south of Kirkuk.
    Last week there were reports that Iraq had resumed pumping crude oil
from Kirkuk fields to a Mediterranean terminal in neighboring Turkey.
    Tehran radio also reported a raid by two Iraqi MiGs on the Iranian
city of Khorramabad that left the city's main square littered with
bodies. The official Iranian news agency said a hotel and several
shops were hit and that ''the piled up bodies of those killed or
injured are being removed to hospitals.''
    Iraq reported air strikes on Khorramabad, 130 miles east of the
Iran-Iraq border, but said fuel storage tanks, a military camp and 150
military vehicles were destroyed in the raid on military targets.
    The speaker of Iran's Parliament said in Beirut that Iranian air
attacks on the Kuwaiti border were a warning to other Persian Gulf
states against helping Iraq.
    The speaker,: 6th graf
    
ap-ny-11-26 1033EST
**********

a106  0813  26 Nov 80
PM-Reagan-Foreign,320
President-elect Receiving Briefings on Polish Unrest
By ROBERT FURLOW
Associated Press Writer
    WASHINGTON (AP) - President-elect Ronald Reagan is receiving daily
CIA briefings on what he and top aides consider ''the potential world
danger'' of labor unrest in Poland, a top Reagan associate said
today.
    ''We are up to date on the situation,'' Edwin Meese III, counselor
to the president-elect, told reporters at a news conference.
    ''As far as any comments on what ought to be done, it would be
inappropriate for us to say until after the 20th of January,'' he
said. Reagan takes office that day.
    Earlier today, the Polish government rushed a delegation to Gdansk
to confer with leaders of the biggest independent trade union as a new
labor crisis threatened over the arrest of an union worker.
    Polish newspapers, meanwhile, quoted Communist Party leader
Stanislaw Kania as expressing concern at the ''manipulation of the
weapon of strikes,'' which jeopardizes ''the obligations resulting
from our alliances'' - a reference to the Soviet-led Warsaw Pact.
    As for the Soviet Union itself, Meese said Sen. Charles Percy,
R-Ill,, carried ''no messages other than the social idea of good
wishes'' from Reagan when the senator met Soviet President Leonid
Brezhnev earlier today.
    However, Meese also acknowledged that Percy, who is in line to
become chairman of the Senate Foreign Relations Committee next year,
met with Reagan foreign policy aides before his trip to Moscow and
''will be able to generally reflect the views of the president-elect''
on foreign policy matters.
    Despite that contact - and Reagan's brief meeting with West German
Chancellor Helmut Schmidt last week in Washington - Meese said Reagan
is sticking to his pledge against official contact with foreign
leaders before his inauguration.
    Meese said Reagan and a few aides are also being briefed daily on
other foreign matters, including the hostage situation in Iran, but he
refused to comment further.
    
ap-ny-11-26 1112EST
**********

a108  0822  26 Nov 80
PM-Hostages, 2nd Ld, a092,350
Eds: New top 9 grafs with editing changes, new details
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - Algerian intermediaries met today with State
Department officials to deliver a new message from Iran on its terms
for freeing the 52 American hostages.
    A little more then 12 hours after their arrival in Washington from
Algiers, the three emissaries began day-long talks that could
determine how far apart the two countries are on negotiating the
release of the captives.
    They were greeted by Assistant Secretary of State Harold Sauders on
arrival at the State Department and went into talks with an American
team led by Deputy Secretary Warren Christopher, who had flown to
Algiers 16 days ago with the U.S. response to Iran's four conditions
for ending the crisis.
    Besides Christopher and Saunders, members of the U.S. team were
Deputy Treasury Secretary Robert Carswell, State Department legal
adviser Roberts Owen and Arnold Raphel, an assistant to Secretary of
State Edmund S. Muskie.
    Muskie also scheduled a luncheon with the Algerian envoys - Redha
Malek, ambassador to the United States; Abdelharim Gheraib, ambassador
to Iran; and Mohammad Seghir Mostefai, chairman of the Central Bank
of Algeria.
    ''We are certainly interested in getting the fullest possible
response from Iran,'' State Department spokesman John Trattner said
Tuesday. ''I think that's obvious.'' He said the Algerians probably
will remain in Washington several days.
    U.S. officials said the United States had received an ''informal''
idea of the nature of the Iranian message in advance of the arrival of
the Algerian mission.
    The Nov. 10 American message explained that restrictions on
presidential authority prevent the Carter administration from fully
meeting two of the demands - cancellation of U.S. financial claims
against Iran and confiscation of the scattered wealth of the late Shah
Mohammad Reza Pahlavi.
    In advance of today's meeting, administration officials said they
expected ''difficult questions'' from Iranian authorities about the
U.S. note delivered by the Algerians to Tehran in response to the
conditions set by the Iranian Parliament on Nov. 2.
    Iranian officials: 8th graf
    
ap-ny-11-26 1121EST
**********

a110  0845  26 Nov 80
PM-Iran-Hostages,470
With Washington Hostages
    BEIRUT, Lebanon (AP) - The speaker of Iran's Parliament said today
some of the 52 U.S. hostages might be released if the United States
complied with part of the Iranian conditions, but said he did not
understand the intricacies of American law.
    At a news conference in a Beirut hotel, Hashemi Rafsanjani told
reporters: ''We expected that America would not be able to meet all
the conditions but every time they move a step forward, then we will
release some of the hostages.''
    He added, ''We do not understand the workings of American law but we
expect the Americans to solve the problem which was caused by them.
We, for our part, have set our laws which are simple, it is now up to
America.''
    President Carter has previously rejected piecemeal release of the
hostages.
    Rafsanjani's remarks were made as an Algerian delegation in
Washington gave the United States Iran's reply to the American message
on the hostages.
    In Tehran, an influential Iranian clergyman and Parliament member
said the United states ''should do more'' to meet Iran's conditions.
Ayatollah Mohammad Beheshti, leader of the Islamic Republican Party
that controls the Parliament, said the Americans ''haven't done all
that they can.''
    The remarks by Rafsanjani and Beheshti indicated the Iranians are
aware of the U.S. position that Iranian conditions about abrogation of
American lawsuits against Iran and return of the late shah's wealth
pose some legal problems for Washington.
    Rafsanjani arrived in the Beirut Tuesday following visits to
Algeria, Libya, and Syria, countries that have supported Iran in the
war with Iraq.
    In another interview with the leftist Lebanese daily, As-Safir,
Rafsanjani was quoted as saying President-elect Ronald Reagan was
incapable of taking military action to rescue the hostages.
    ''Our nation is ready to sacrifice to whatever limit,'' he said.
''If the United States wishes to test this, we shall oblige. But I
don't think the Americans are as crazy as to hurl themselves into
destruction.''
    Following an abortive rescue attempt ordered by President Carter
last April, the hostages were reported moved from the U.S. Embassy in
Tehran and dispersed across the country to prevent any further rescue
attempts.
    On Nov. 2 the Iranian Parliament said the hostages would be released
if the United States returned the late shah's wealth, freed Iranian
asets held in U.S. Banks, dropped lawsuits against Iran and pledged
non-interference in Iranian affairs.
    On Nov 10, with Algeria as intermediary, the United States responded
to Iran's conditions and Iran described the reply as ''not explicit
or clear'' and asked for a ''positive or negative'' answer.
    Rafsanjani said the Iranian Parliament had set its conditions. ''The
matter is out of our hands,'' he said, adding that the hostages could
be released ''any day'' if the U.S. meets Iran's conditions.
    
ap-ny-11-26 1144EST
**********

a113  0904  26 Nov 80
PM-Hostages, Sub a015 original,160
WASHINGTON Sub last graf: The Algerian xxx Dulles airport with 5
grafs to include new Rafsanjani, Beheshti quotes
    Later, at a Beirut news conference, Rafsanjani said some of the U.S.
hostages might be released if the United States complied with part of
the Iranian conditions.
    ''We expected that America would not be able to meet all the
conditions but every time they move a step forward, then we will
release some of the hostages.''
    He added, ''We do not understand the workings of American law, but
we expect the Americans to solve the problem which was caused by them.
We, for our part, have set our laws which are simple, it is now up to
America.''
    President Carter has consistently rejected piecemeal release of the
hostages if any conditions were attached.
    Meanwhile, Ayatollah Mohammad Beheshti, leader of the Islamic
Republican Party that controls the Parliament, said in Tehran that the
Americans ''haven't done all that they can'' to meet the conditions.
    
ap-ny-11-26 1203EST
**********

n029  1011  26 Nov 80
 
BC-ECONOMY-'81 2takes
(Newhouse 001)
Suggested for weekend use
By LEONARD CURRY
and JAMES HILDRETH
Newhouse News Service
    WASHINGTON - In 1981, food and fuel prices will climb, and credit
and jobs will be tight - if Americans are lucky.
    But if there's a bad harvest, accelerated instability in the
oil-rich Middle East or some other such uncontrollable circumstance,
the country could suffer through economic turmoil of historic
proportions, despite a new White House occupant.
    A wide range of economists say President-elect Reagan's blueprint of
heavy tax cuts and lower federal spending won't substantially alter
the gloomy economic landscape during his first year in the White
House. There are too many negative factors already in place.
    'The tax cut won't solve our problems,'' says Alan Greenspan, a
chief Reagan adviser. ''We need it just to keep our heads above
water.''
    ''Some of the problems that he (Reagan) has to address are not going
to be solved by any of these simple solutions, like tax cuts or
tighter money,'' adds Lawrence Chimerine, head of the forecasting
subsidiary of Chase Manhattan Bank. ''The amount of success he can
have can only be fairly limited in view of the kind of problems he's
confronting.''
    When Reagan is inaugurated on Jan. 20, he will inherit the worst
inflation - about 13 percent - of any new president; the highest
number of unemployed - 8 million - since the Great Depression; the
second-largest budget deficit in history; a deteriorating world trade
posture; interest rates which are choking off housing and other
consumer buying, and an economy teetering on the brink of its second
recession in 12 months.
    ''Reagan has been dealt a bad hand by the Carter administration,''
says Michael Evans, head of Evans Econometrics, a conservative
forecasting firm.
    Chimerine adds, ''The current situation, in many ways, is similar to
early 1980 when the rise in interest rates and inflation, combined
with a reversal of several temporary buoying factors, led to the
sharp decline in the economy.''
    Although hopeful that Reagan's stewardship will be an improvement
over the Democrats, the financial, business, labor and academic
communities are also realistic.
    ''Historically, the first year is when the new administration tries
to straighten out the mess left by the last bunch trying to get
re-elected,'' says Robert Stoval, economist for the Dean Witter
Reynolds brokerage house.
    The key to any brighter economic picture next year is some
demonstrable progress on the inflation front.
    Forecasters say inflation will probably rise by at least 10 percent
in 1981. That would be better than the 13 percent levels of both 1979
and 1980, but still the fourth-highest rate since 1948.
    There are several factors working against any substantial drop in
consumer prices: a new surge in food prices, anticipated oil price
increases on top of domestic decontrol, higher labor and payroll
costs, and the continued ''tight money'' policy of the Federal
Reserve Board.
    The Agriculture Department predicts food prices will rise 12 percent
next year - 3.5 percent higher than this year. The estimate is based
on expectations that grain and meat prices are poised for sharp
upswings in the next six months.
    World stocks of grain have fallen to their lowest level in five
years, mainly because of last summer's drought, which sliced crop
yields in the United States and Canada, and poor harvests in
Argentina and Australia. Corn production, for instance, dropped 17
percent in the United States.
    When corn production declines, the price of grain rises. Increased
grain prices drive up farm production costs, prompting many farmers
to thin out their herds and drive up beef prices.
    Reagan's advisers are hopeful that farmers will offset some of the
upward price pressures by increasing production. In the case of beef
and pork, it would take several years to change the cycle. But egg
and poultry prices can be adjusted much quicker.
    ''When egg prices get high enough, even the rooster starts laying,''
says Richard Lyng, who is directing Reagan's agriculture transition
team.
    After several stable months, many economists foresee renewed energy
pressures from abroad.
    ''We can expect an oil shock,'' predicts Rudolph Penner of the
American Enterprise Institute. ''The only question is the magnitude
and that depends on the length on the Iran-Iraq war.''
    The Organization of Petroleum Exporting Countries convenes next
month in Indonesia to set 1981 oil prices. Penner says he anticipates
world oil prices to hit $40 a barrel by the end of summer, a 14
percent rise from current levels.
    Experts says the current worldwide oil surplus could be used up by
next spring, if Iraq does not resume the production that was
interrupted by the war.
    Furthermore, by the time full domestic decontrol takes effect Oct. 1
fuel prices will be 24 percent higher than they are now.
    These factors would translate into higher gasoline and home heating
oil costs for the consumer.
SG     (MORE)
    
ny-1126 1313est
**********

a209  1018  26 Nov 80
AM-Hostage-Thanksgiving, Bjt,550
Thanks Tinged With Disappointment for Hostage Families
Laserphoto TEH2
By LOUISE COOK
Associated Press Writer
    The families of the American hostages in Iran are finding things to
be thankful for in the midst of worry, as they prepare for their
second Thanksgiving without their loved ones.
    ''We're assuming that he's well and we're thankful for that,'' said
Pat Lee, wife of Gary Lee, 37, a general services officer. Mrs. Lee
and her daughter planned to go to her parents in West Virginia for the
holiday, but she said Thursday would not really be Thanksgiving.
    ''The greatest Thanksgiving - whether it comes in December, January,
March or whenever - is when he comes home,'' she said.
    Bonnie Graves, wife of John Graves, 53, said: ''I'm grateful for the
fact that ours has been a close-knit family and at these holiday
seasons I at least have them with me.''
    Mrs. Graves said she would spend Thanksgiving at home in Reston,
Va., with her three children and a grandchild. ''I know that John has
memories of them and the Thanksgivings we've shared together to
sustain him,'' she said, adding that she would be ''attempting to be
thankful for those things that we find to be thankful for in the midst
of the tragedy of the Iran situation.''
    In Tacoma, Wash., Dave Schaefer, son of Air Force Col. Thomas
Schaefer, 50, said of his father: ''I'm just happy he's still alive
over there.''
    He said he and his wife ''are going to spend a quiet day alone'' on
Thanksgiving. The young Schaefers have two children, ages 1 and 3.
''The 3-year-old knows his grandpa is not here and can't join us and
he's held in Iran and he understands,'' Schaefer said.
    ''As time goes on you get more patient,'' said Schaefer. ''We've
been through this before.''
    Carol Elledge of Kennewick, Wash., the sister of Army Warrant
Officer Joseph Hall, 31, was similarly stoic. ''I'm afraid if I get
too optimistic they'll pull the rug out from under us again. We'll
just take it a day at a time - we're getting pretty good at that,''
she said.
    She said she would spend Thanksgiving with friends in Pasco, Wash.,
but added: ''I'd be more thankful if I could have my brother home.
I'll be thinking about Joe a lot.''
    Dorothea Morefield, wife of Consul General Richard Morefield, 51,
said she and four of the Morefield's five children would get together
on Thursday at a relative's house in San Diego.
    ''I dread the holidays,'' she said. ''They're always difficult days.
And this year I was so certain something would break. It just doesn't
do any good to set a date in your mind because when it doesn't
happen, it hurts.''
    Louisa Kennedy's four sons and her parents planned to join her in
Washington for Thanksgiving. ''It's just something you've got to get
through and I think the boys know that and I know that,'' said Mrs.
Kennedy, wife of Moorehead C. Kennedy Jr., 49, an intellligence
specialist. ''I think that we'll have a fine holiday. We'll be
thinking of him and he'll obviously be thinking of us, too.''
    Jesse Lopez of Globe, Ariz., father of Marine Sgt. Jimmy Lopez, 22,
said he had no special plans for Thanksgiving. ''I've got to work, my
wife's got to work,'' he said.
    Lopez said the negotiations to try to free the hostages - for whom
Thanksgiving will mark the 390th day of captivity - are ''going in the
right direction.'' He added: ''It's going slowly, but surely, but the
end is in sight. They say the last mile is the longest.''
    
ap-ny-11-26 1318EST
**********

n040  1202  26 Nov 80
 
BC-ECONOMY-'81 2takes
(REPEATING Newhouse 001 - Clarifying and adding detail)
Suggested for weekend use
By LEONARD CURRY
and JAMES HILDRETH
Newhouse News Service
    WASHINGTON - In 1981, food and fuel prices will climb and credit and
the job market will be tight - IF Americans are lucky.
    And if there's a bad harvest or a big boost in oil prices, the
economy could be plunged into its second recession in 12 months -
despite a new White House occupant.
    A wide range of economists say President-elect Reagan's blueprint of
heavy tax cuts and lower federal spending won't substantially alter
the gloomy economic landscape during his first year in the White
House. There are too many negative factors already in place.
    'The tax cut won't solve our problems,'' says Alan Greenspan, a
chief Reagan adviser. ''We need it just to keep our heads above
water.''
    ''Some of the problems that he (Reagan) has to address are not going
to be solved by any of these simple solutions, like tax cuts or
tighter money,'' adds Lawrence Chimerine, head of the forecasting
subsidiary of Chase Manhattan Bank. ''The amount of success he can
have can only be fairly limited in view of the kind of problems he's
confronting.''
    When Reagan is inaugurated on Jan. 20, he will inherit the worst
inflation - about 13 percent - of any new president; the highest
number of unemployed - 8 million - since the Great Depression; the
second-largest budget deficit in history; a deteriorating world trade
posture; interest rates which are choking off housing and other
consumer buying, and an economy teetering on the brink of its second
recession in 12 months.
    ''Reagan has been dealt a bad hand by the Carter administration,''
says Michael Evans, head of Evans Econometrics, a conservative
forecasting firm.
    Chimerine adds, ''The current situation, in many ways, is similar to
early 1980 when the rise in interest rates and inflation, combined
with a reversal of several temporary buoying factors, led to the
sharp decline in the economy.''
    Although hopeful that Reagan's stewardship will be an improvement
over the Democrats, the financial, business, labor and academic
communities are also realistic.
    ''Historically, the first year is when the new administration tries
to straighten out the mess left by the last bunch trying to get
re-elected,'' says Robert Stoval, economist for the Dean Witter
Reynolds brokerage house.
    The key to any brighter economic picture next year is some
demonstrable progress on the inflation front.
    Forecasters say inflation will probably rise by at least 10 percent
in 1981. That would be better than the 13 percent levels of both 1979
and 1980, but still the fourth-highest rate since 1948.
    There are several factors working against any substantial drop in
consumer prices: a new surge in food prices, anticipated oil price
increases on top of domestic decontrol, higher labor and payroll
costs, and the continued ''tight money'' policy of the Federal
Reserve Board.
    The Agriculture Department predicts food prices will rise 12 percent
next year - 3.5 percent higher than this year. The estimate is based
on expectations that grain and meat prices are poised for sharp
upswings in the next six months.
    World stocks of grain have fallen to their lowest level in five
years, mainly because of last summer's drought, which sliced crop
yields in the United States and Canada, and poor harvests in
Argentina and Australia. Corn production, for instance, dropped 17
percent in the United States.
    When corn production declines, the price of grain rises. Increased
grain prices drive up farm production costs, prompting many farmers
to thin out their herds and drive up beef prices.
    Reagan's advisers are hopeful that farmers will offset some of the
upward price pressures by increasing production. In the case of beef
and pork, it would take several years to change the cycle. But egg
and poultry prices can be adjusted much quicker.
    ''When egg prices get high enough, even the rooster starts laying,''
says Richard Lyng, who is directing Reagan's agriculture transition
team.
    After several stable months, many economists foresee renewed energy
pressures from abroad.
    ''We can expect an oil shock,'' predicts Rudolph Penner of the
American Enterprise Institute. ''The only question is the magnitude
and that depends on the length on the Iran-Iraq war.''
    The Organization of Petroleum Exporting Countries convenes next
month in Indonesia to set 1981 oil prices. Penner says he anticipates
world oil prices to hit $40 a barrel by the end of summer, a 14
percent rise from current levels.
    Experts says the current worldwide oil surplus could be used up by
next spring, if Iraq does not resume the production that was
interrupted by the war.
    Furthermore, by the time full domestic decontrol takes effect Oct. 1
fuel prices will be 24 percent higher than they are now.
    These factors would translate into higher gasoline and home heating
oil costs for the consumer.
SG     (MORE)
    
ny-1126 1505est
**********

a223  1224  26 Nov 80
AM-War Rdp, Bjt,640
Heavy Air Action, Agreement on Evacuating Ships Reported
Laserphoto Map NY29
    BAGHDAD, Iraq (AP) - Iran and Iraq reported carrying out some of the
heaviest air bombings of the war on Wednesday. A special U.N. envoy
said, meanwhile, he obtained an agreement in principle from the two
countries to allow commercial ships bottled up in the disputed Shatt
al-Arab waterway to leave the war zone.
    Iran said its fighter jets destroyed a pipeline complex and nine
fuel storage tanks in Kirkuk and raided six other targets. The attacks
came several days after oil industry sources said Iraq had resumed
export of about 350,000 barrels of oil a day through its Turkish
pipeline, fed by the oil fields around Kirkuk. It was unclear if the
raid affected the flow of oil.
    Iraq said its bombers hit military facilities and fuel storage tanks
in Khorramabad, a city of 500,000 people located about 200 miles
southwest of Tehran.
    Iraq said its jets also hit a military camp, power station and a
cluster of 150 military vehicles in the raid on Khorramabad. The
Iranian news agency Pars quoted the governor general of the city as
saying a hotel and several shops around the city's main square were
bombed.
    In addition to the Kirkuk raid, Iran said its fighter jets struck
six other targets in Iraq's northern provinces, damaging an airport
and an oil refinery and demolishing a helicopter base, storage bases
and missile depots.
    The Iraqi High Command confirmed the Kirkuk raid as well as earlier
attacks on Suleimaniyeh and Salaheddin provinces.
    In New York, a spokesman for U.N. Secretary-General Kurt Waldheim
said special envoy Olof Palme of Sweden, who returned Tuesday from a
week's trip to Iran and Iraq, said technical problems were being
worked out so ships in the Shatt al-Arab could be evacuated.
    The U.N. spokesman, Rudolf Stajduhar, said as far as he knew the 63
ships listed in the waterway on Oct. 14 were still there.
    Iran has said repeatedly it will not discuss a cease-fire with Iraq
until all Iraqi troops are evacuated from Iranian territory. Iraq
says it will not pull its troops back until Iran recognizes Iraqi
sovereignty over disputed border lands and the Shatt al-Arab estuary,
the southern border between the two countries and Iraq's only outlet
to the sea.
    Escalation of the air war came as the speaker of Iran's Parliament,
Hashemi Rafsanjani, said at a news conference in Beirut, Lebanon,
that the Iranian rockets that fell in Kuwait earlier this month should
be a warning to countries that help Iraq.
    His statement rekindled fears that the Persian Gulf war could spread
to other nations in the vital oil-producing region. There have been
reports that both Kuwait and Saudi Arabia have been sending fuel and
non-military supplies to Iraq.
    Iraq, Saudi Arabia and all other gulf nations vowed to go to
Kuwait's aid in the wake of the Nov. 12 and 16 rocket attacks.
    Saudi Interior Minister Prince Nayef Bin Abdul-Aziz was quoted by a
Kuwaiti newspaper as saying ''a gulf security scheme'' was being
considered by his country, Kuwait, Bahrain, Qatar, the United Arab
Emirates and Oman.
    The six nations' armies, totalling about 106,000 soldiers, are
dwarfed by those of Iraq and Iran, which number about 240,000 men
each.
    In other areas of the 300-mile-long battlefront, Iraq claimed 24
Iranian troops were killed in overnight ground operations and
helicopter gunship raids. It said seven Iraqis were killed.
    Iran said 132 Iraqis were killed in fighting in the main fronts in
oil-rich Khuzistan Province, the refining city of Abadan and the
strategically located highway town of Susangerd, 85 miles to the
north.
    Iran, which claims to have broken the five-week siege of Abadan,
said its forces were attacking Iraqi positions at the key Mashahr
highway junction northeast of the city.
    Both nations reported a six-day paratroop battle continuing for the
strategic highlands in western Iran that command main highway routes
to Baghdad.
    
ap-ny-11-26 1524EST
**********

a225  1238  26 Nov 80
AM-US-Iran, Bjt,630
Algerians Deliver Iran's Reponse to U.S. Officials
Laserphoto WX19
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - Algerian intermediaries delivered a confidential
message from Iran to the State Department on Wednesday, marking the
start of a new round in what sources said would be a ''long-haul''
effort to win freedom for the 52 American hostages.
    The State Department described the exchange as ''intensive and
useful,'' but offered no further comment.
    The three Algerian envoys were believed to be seeking clarification
of U.S. proposals that Deputy Secretary of State Warren Christopher
took to Algiers 16 days ago.
    Those proposals represented the U.S. response to four conditions
Iran has set for release of the hostages. Algeria is acting as
go-between in the effort to end the hostage crisis, now in its 13th
month.
    Christopher headed a five-member U.S. delegation that received the
Algerian envoys, who opened their meetings a little more than 12 hours
after their arrival Tuesday night. After the morning meeting
Wednesday, Secretary of State Edmund S. Muskie was host at a luncheon
for the visitors.
    State Department spokesman John Trattner said President Carter would
be kept informed of the discussions. It was not clear how long the
Algerians would remain in Washington.
    The envoys flew to the U.S. capital after several days of
consultations with Iranian officials in Tehran. Their arrival followed
a series of conflicting statements about the nature of the Iranian
response to the U.S. proposals.
    U.S. officials said the United States had been advised informally
beforehand about Iran's message, but they refused to characterize it.
    The Algerians were greeted at the State Department's diplomatic
entrance by Harold Saunders, assistant secretary of state for Near
Eastern and South Asian Affairs.
    In addition to Christopher and Saunders, the American delegation
included Deputy Treasury Secretary Robert Carswell, State Department
legal adviser Roberts Owen and Arnold Raphel, an adviser to Muskie.
    The Algerian envoys were Redha Malek, ambassador to the United
States; Abdelharim Gheraib, ambassador to Iran; and Mohammad Seghir
Mostefai, chairman of the Central Bank of Algeria.
    The talks began as the hostages were spending their 389th day in
captivity.
    Christopher's Nov. 10 message explained that restrictions on
presidential authority prevented the Carter administration from fully
meeting two of Iran's demands: cancellation of more than 300 U.S.
financial claims against Iran and confiscation of the scattered wealth
of the late Shah Mohammad Reza Pahlavi.
    The other two conditions - a pledge of non-interference in Iran's
internal affairs and the freeing of more than $8 billion in frozen
Iranian assets - do not appear to be major issues.
    The speaker of Iran's Parliament, Hashemi Rafsanjani, said at a news
conference in Lebanon on Wednesday: ''We expected that America would
not be able to meet all the conditions, but every time they move a
step forward, then we will release some of the hostages.''
    Carter has consistently rejected piecemeal release of the hostages
if any conditions were attached.
    Meanwhile, Ayatollah Mohammad Beheshti, leader of the Islamic
Republican Party that controls the Parliament, said in Tehran that the
Americans ''haven't done all that they can'' to meet the conditions.
    U.S. officials believe protracted negotiations will be required
before a breakthrough can be achieved. One reason is the additional
time required when negotiations are carried on through intermediaries
rather than face to face.
    Wednesday's talks were only the second exchange between the United
States and Iran since the Iranian Parliament set down the four
conditions for the hostages' release on Nov. 2.
    Trattner said the United States was not seeking direct negotiations
with Iran, but that it would be willing to consider that possibility
if circumstances required it.
    
ap-ny-11-26 1538EST
**********

n048  1403  26 Nov 80
 
BC-ANGELS
(Newhouse 004)
By VICTOR WILSON
Newhouse News Service
    (UNDATED) The Greek philosopher Plato wrote the following concerning
angels:
    ''The function of the wing is to take what is heavy and raise it up
into the region above, where the gods dwell; of all things connected
with the body, it has the greatest affinity with the divine.''
    But the image of angels in church history and the arts has depended
upon one's point of view.
    Writing in ''Angels'' (Pantheon Books, $29.95), Peter Lamborn Wilson
says there are as many descriptions of angels as there are
viewpoints, and proves it with a wide-ranging text and 180
illustrations, 38 in full color.
    Viewpoints range from the Hebrew prophet Isaiah to King Arthur's
Knights of the Round Table, from Dante to the prophet Ezekiel.
    ''The image of the angel in art,'' Wilson says, ''emerges from a
creative interplay between traditional canons - based on Scripture -
and the personal vision of the artist.
    ''To say that a visionary sees what the Scriptures and sacred art
have prepared him to see is not to accuse him of inauthenticity - the
vision is real, but it is also influenced by culture.''
    Wilson is a poet, translator and free-lance journalist. He has
traveled extensively in the Middle East, India, Pakistan, Afghanistan
and Nepal. He lived in Iran for several years, and was editor of
Sophia Perennis, the journal of the Imperial Iranian Academy of
Philosophy. He now lives in London.
    Isaiah saw the highest of angels as ''ancient, bearded, inspired;
yet at the same time an eternal and celestial adolescent, radiantly
beautiful.'' The seraphim each had six wings, Isaiah said, but
Ezekiel counted four wings each.
    Also, said Ezekiel, they had a man's hands under their wings. Some
had a man's face or a lion's face on the right side, and an ox's face
or an eagle's face on the left.
    When King Arthur's knights set out in search of the Holy Grail - an
oft-repeated task - they usually were confronted by ''a Loathly
Maiden'' who would invite them to behead her.
    This character wasn't a demon, but an angel in disguise, testing the
knights' will for adventure.
    If Satan is Samael, Angel of Evil, who occupies the frozen pit of
Dante's lowest hell, he also appears as elegant and sardonic in the
Bie     t
cdnh
...
(End missing.)
**********

a251  1608  26 Nov 80
AM-US-Iran, 1st Ld, a225,330
Eds: Leads with 9 grafs to update with details of meeting
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - Algerian intermediaries held ''intensive and
useful'' discussions with State Department officials on the Iran
hostage crisis Wednesday and reported that all 52 American captives
are in good health.
    State Department spokesman John Trattner refused to describe the
discussions any further except to say that the emissaries sought
clarification of ''certain aspects'' of U.S two weeks ago.
    Trattner said the three-member Algerian team authorized the chief of
the American delegation, Deputy Secretary of State Warren
Christopher, to report that all the hostages are well.
    The United States has had little reliable information recently about
the hostages' well-being, partially because of a suspension in mail
deliveries from the hostages since September. The cutoff resulted from
the outbreak of the war between Iran and Iraq.
    Trattner spoke with reporters after the Algerians had spent 5 1/2 hours
in discussions with Christopher and four other top American
officials. He said a Thanksgiving Day meeting also was planned. Other
officials said Christopher may brief President Carter at Camp David
after Thursday's session.
    ''The Algerian delegation met with the American delegation
throughout the day today to transmit and explain the Iranian position
following the U.S. reponse to the Majlis (Parliament) proposals for
the release of the hostages,'' Trattner said.
    ''The Iranian position, as conveyed by the Algerian delegation,
seeks clarification of certain aspects of the U.S. response'' to four
conditions Iran has set for the release of the hostages.
    The Algerian envoys, who have been serving as intermediaries between
the United States and Iran, opened their meetings a little more than
12 hours after their arrival Tuesday night. After the morning meeting
Wednesday, Secretary of State Edmund S. Muskie hosted luncheon for
the visitors.
    It was not clear how long the Algerians would remain in Washington.
    The envoys, 7th graf
    
ap-ny-11-26 1907EST
**********

a255  1638  26 Nov 80
AM-Arab Summit,550
Syria Moves Troops to Jordan Border
By NICOLAS B. TATRO
Associated Press Writer
    AMMAN, Jordan (AP) - Syria has up to 20,000 soldiers and 400 tanks
deployed in an area only three miles from the border with Jordan,
sources here for the Arab League summit meeting reported Wednesday.
    Jordan's information minister indirectly confirmed the Syrian
buildup at a news conference, but suggested in sarcastic tones that
the move was hopefully directed against Israeli forces.
    ''We don't know that the troop massing is directed against Jordan,
but we do hope it is meant to consolidate the Syrian troops against
the Israelis in the Golan Heights,'' Adnan Abu Aoudeh said.
    The Golan Heights, seized from Syria by the Israel in the 1967
Mideast war, are 35 miles from the area where sources said the troop
buildup was taking place.
    Sources said the Syrian buildup was directed solely at Jordan, which
reacted by placing its army on alert and canceling all leaves.
    The convening of the summit heightened tensions between Jordan's
King Hussein, the host, and Syrian President Hafez Assad, who
engineered a boycott by five Arab states and the Palestine Liberation
Organization.
    Syria has accused Jordan of trying to undermine the PLO and of
aiding Islamic fundamentalists who oppose the socialist Baath
government in Damascus. The two nations also differ on the Iraq-Iran
war, with Jordan offering support to Iraq while Syria has condemned
the Iraqi war efforts for diverting attention from the Arab-Israeli
conflict.
    Sources said Syria's troop buildup began last Thursday when Arab
foreign ministers were holding a pre-summit conference and there were
reports from Syria about mistreatment of Syrian nationals at the
Jordanian border. The buildup continued, the sources said, in an
apparent attempt to influence the summit.
    The sources said the Syrian move appeared to be ''saber-rattling''
but raised fears of a ''second front'' in the Mideast while Iraq and
Iran are battling in the oil-rich Persian Gulf area.
    Abu Aoudeh told the news conference the Arab leaders had unanimously
approved a decade-long development plan proposed by Iraq that
envisages a $5 billion fund to be financed by Saudi Arabia, Kuwait,
the United Arab Emirates, Qatar and Iraq.
    The program, aimed at non-oil Arab nations, would provide loans with
a nominal interest rate of 1 per cent and a 10-year grace period on
repayment for economic and social projects, he said.
    The aim of the economic program, the focus of the summit, is to
bring about economic integration that the leaders hope will end
feuding among Arab nations.
    The summit also approved bolstering the Arab-African Bank with $20
million from oil rich gulf states, the Jordanian minister said.
    He said the boycott by Syria and the hardliners would not affect the
summit's decision since the strategy had been outlined by all Arab
states at the 20-nation foreign ministers conference.
    Fifteen Arab leaders met for a second day of summit talks. Syria
engineered a boycott by five Arab countries and the Palestine
Liberation Organization after the majority of Arab states refused to
go along with a call by Syria to postpone the summit.
    The boycott by Syria, Libya, Algeria, Lebanon, South Yemen and the
PLO appeared to be impeding a summit agreement on permitting King
Hussein of Jordan to meet with U.S. President-elect Ronald Reagan as a
representative of the Arab countries for exploratory talks on the
Mideast, conference sources said.
    
ap-ny-11-26 1938EST
**********

n077  1650  26 Nov 80
 
AM-HOSTAGE-U.S.
U.S. Said To Be Assured Of Hostages' Good Health.
 
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - The United States said Wednesday that it had received
fresh assurances from Iran that the 52 American hostages were in good
health as talks resumed here on securing their release.
    After spending most of the day conferring with an Algerian
delegation that is serving as the go-between in resolving the hostage
crisis, Deputy Secretary of State Warren M. Christopher said that the
Algerians had conveyed the Iranian assurances on the hostages'
well-being.
    As to the latest round of talks on resolving the crisis, John H.
Trattner, the State Department spokesman, said that the discussions
were ''intensive and useful'' and would continue Thursday.
     The Algerians, who recently spent a week in Tehran conferring with
Iranian officials, presented to the United States the Iranian request
for ''clarification of certain aspects of the United States
response'' to Iran's four conditions for the release of the hostages,
Trattner said.
    He declined to elaboratel, but other officials said that the
Iranians complained about the American response to two of the four
demands.
    The Iranians had insisted, in the most controversial parts of the
document issued by their parliament on Nov. 2, that the United States
agree to canceling all claims against Iran and to confiscating and
transferring to Iran the property of the late shah.
    The American response, while portrayed as ''positive'' in tone,
reportedly pointed out legal obstacles to meeting those demands and
outlined to the Iranians alternate approaches that could be followed
within American law.
    Officials said a claims commission could be set up to handle
disputed claims, and the United States could help identify the shah's
assets, leaving it to Iran to press its case in the courts.
    Two other Iranian demands - American pledge of non-intervention in
Iranian affairs, and the unfreezing of Iran's assets - can be met and
are not believed to be in dispute.
    American officials spent most of Wednesday listening to the
Algerians, speaking through French interpreters, describe their
discussions with the Iranians. American officials refused to say
whether they were more hopeful or not about resolving the crisis
after hearing the Algerians. Officials said that they expected the
Algerians to depart Thursday night or Friday for Algiers.
    An American response to the request for ''clarification'' will then
be drawn up and sent next week to the Algerians, possibly by
Christopher, who conveyed the original American response to Algiers
on Nov. 10.
    What is unclear is whether there is much negotiating room between
the four Iranian conditions and the American response.
    Statements from some Iranian leaders have been couched in a
peremptory tone, insisting that the United States accept the Iranian
conditions as they stand, without any modification.
    If the request for ''clarification'' is a reiteration for a ''yes''
or ''no'' response, this could cause major problems for the United
States.
    The State Department regarded the assurances on the hostages' health
as a good sign, officials said and, also, a possible indication of
Iran's desire to end the crisis. The Americans have not been seen by
any outside observers since a group from the International Committee
of the Red Cross visited them in April.
    
ny-1126 1951est
**********

a261  1705  26 Nov 80
AM-War Rdp, SUB, a223,110
BAGHDAD, Iraq, to add Palme comment, SUB grafs 7 and 8: In New ...
still there.
    In New York, special U.N. envoy Olof Palme of Sweden said Iran and
Iraq had agreed that 63 commercial ships stranded in the Shatt al-Arab
because of the war would be allowed to leave under the Red Cross
flag. The former Swedish prime minister, who returned Tuesday from a
week's trip to the warring nations, said details of the operation were
being worked out.
    Palme also said he expected to return to Iran and Iraq in a few
weeks to continue his mission. He told reporters he would make his
second trip between the middle of December and the middle of January.
He added, ''It depends on my own thinking and on developments in the
area.''
    Iran has, 9th graf
    
ap-ny-11-26 2004EST
**********

a262  1716  26 Nov 80
AM-Cutler Resigns,210
Carter's Counsel To Return to Private Practice
    WASHINGTON (AP) - Lloyd N. Cutler, a prominent Washington attorney
who was counsel to President Carter for the last year, will resign at
the end of the week to return to private practice, the White House
announced Wednesday.
    The White House said that at Carter's request, Cutler will continue
to serve as an unpaid legal consultant for the remaining weeks of the
administration.
    He will work on such issues as the legal aspects of negotiations for
return of the hostages held by Iran, the disposition of the
president's papers, and Carter's actions on legislation completed by
the lame-duck session of Congress.
    The president accepted Cutler's resignation ''with deep appreciation
to you for having performed your difficult tasks so superbly and for
having helped me so much during some trying times.''
    Among other things Cutler was deeply involved in attempts to win
Senate ratification of the SALT II treaty with the Soviet Union. Those
attempts were abandoned following the Soviet military thrust into
Afghanistan last year.
    Cutler was appointed presidential counsel on Oct. 1, 1979. He said
at the time he intended to remain in the job only one year. He will
return to the law firm of Wilmer, Cutler and Pickering.
    
ap-ny-11-26 2008EST
**********

n081  1725  26 Nov 80
 
AM-IRAQ
Iranian Aircraft Bomb Reopened Iraqi Oil Pipeline
By PRANAY B. GUPTE
c.1980 N.Y. Times News Service
    BAGHDAD, Iraq - Iranian fighter-bombers carried out several raids
Wednesday on northern oilfields in the Kirkuk area in an evident
attempt to halt Iraq's newly resumed exports of oil through a
pipeline to the Mediterranean coast of Turkey.
    Only limited damage resulted, an Iraqi Information Ministry official
said. He reported that seven or eight storage tanks had been hit but
said there was no damage to such crucial targets as stations
controlling the flow of oil in pipelines.
    Iranian broadcasts said the air strikes destroyed nine tanks and
what was described as a pipeline complex. Nothing was said about
curbing the oil flow.
    Iraqi bombers, in turn, struck at Iranian installations, hitting
what official accounts described as fuel storage tanks and military
facilities in Khurramabad, a city of 500,000 about 200 miles
southwest of Tehran. The Iranian version, as distributed by the
official press agency Pars, quoted the governor of the city as saying
that the Iraqi planes struck a hotel and several shops, killing 17
people and wounding 69.
    Iraq said that two Iranian planes were downed in battles over the
Sulaimaniya area, near Kirkuk. One Iraqi plane was lost, a communique
said.
    According to official and diplomatic sources, Iraq's oil exports,
resumed last Thursday, have been limited to about half a million
barrels a day, a major drop from the more than 3.7 million barrels
exported by pipelines and tanker through the Persian Gulf before the
outbreak of widescale hostilities Sept. 22.
    The Iraqi official said the primary beneficiaries of renewed oil
exports would be customers whose friendship was important to Baghdad,
mainly France, Brazil, Yugoslavia and Turkey. He said the Turks had
shown a great deal of cooperation by repairing the pipeline put out
of action by Kurdish rebels at the end of September.
    France and Brazil supply Iraq with military equipment and, in
addition, France has been helping the Iraqis build two nuclear
reactors. Yugoslavia is a close Third World ally of Baghdad.
    While some oil is flowing to Turkey, Iraq has not been able, or
willing, to resume pumping in its other pipeline to the
Mediterranean. That line leads to the port of Banias in Syria, a
rival of Iraq that supports Iran in the Persian Gulf war, and the
Lebanese port of Tripoli.
    Despite the continued Iranian air strikes, the general feeling in
this capital appears to be that Iranian air power has sunk to a level
where it represents an insignificant threat to Iraq.
    The Iraqi general command said Wednesday that Iraqi air defense
gunners and air force jets had shot down a total of 397 Iranian jets
since the end of September. Diplomatic sources here said that even
though this figure appeared exaggerated, Iraq is believed to have
caused major damage to the Iranian air force's offensive capacity.
    Iranian air power is generally put at about 460 combat aircraft, but
it is believed that many of these planes are out of service for lack
of technical expertise and pilots.
    The sources reporting on Iraq's limited oil exports said that it was
selling its shipments at $33.50 a barrel and that the result could be
a daily income of $16 million if the exports were to hold steady.
    Iraq, which keeps its financial affairs closely guarded, is believed
by international bankers to have $20 billion in foreign currency
reserves. Such reserves, it is believed, would allow the Iraqis to
fight on for another year even if they exported no oil.
    In other developments, Iraq said 25 Iranian soldiers and seven
Iraqis were killed in fighting on various fronts Tuesday night and
Wednesday morning. Iran said that 132 Iraqis were killed in fighting
at the battered oil-refinery city of Abadan and the town of
Susangird, 85 miles to the north, and that 196 Iraqis were killed or
wounded further north at Gilan and Qasr-i-Shirin.
    
ny-1126 2028est
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n085  1804  26 Nov 80
 
AM-ARABS
Syria Deploys Troops On Jordian Border To Nettle Arab Conferees
By PRANAY B. GUPTE
c. 1980 N.Y. Times News Service
    AMMAN, Jordan - Arab officials and Western diplomats reported
Wednesday that Syria had deployed 20,000 troops and 400 tanks near
the Jordanian border in what was apparently an attempt to disturb the
Arab leaders' conference here, which Syria has been boycotting.
    The sources said Jordan had responded by placing its armed forces on
full alert, canceling all leaves and moving army units toward the
border. There was no suggestion here, however, that any miltary
confrontation was expected.
    Participants in the three-day conference, which began Tuesday and
which is being boycotted by Algeria, Libya, Lebanon, Southern Yemen
and the Palestine Liberation Organization, as well as Syria, spent
much of the day in private meetings and also paid calls on King
Hussein.
    Mohammed Abu Odeh, information minister of Jordan, said Wednesday
night that the 15 Arab nations represented here had agreed to
''reassert Arab efforts to defend Arab rights.''
    This idea, which is expected to be reflected in the final statement
to be issued at the concluding session Thursday, is regarded as
support for President Saddam Hussein of Iraq, who has sought the
backing of other Arab countries for his war with Iran.
    ''Arab rights'' is an allusion to Iraq's claim to full sovereignty
over the Shatt al-Arab waterway and to Arab claims to three islands
at the mouth of the Persian Gulf that Iran seized in 1971.
    So far only Jordan has come out with an open endorsement of Iraq's
war effort, although such countries as Saudi Arabia and Kuwait have
offered tacit backing. Jordan's enthusiastic support of Iraq has also
irked President Hafez al-Assad of Syria.
    Abu Odeh said Wednesday night that summit particpants unanimously
agreed to endorse a 10-year plan for Arab economic development. He
said that Iraq was the leading proponent of this plan, which calls
for spending more than $30 billion toward improving living standards
in Arab countries and promoting industrialization and education.
    Conference participants were also said to have agreed to back a
proposal to create a $5 billion Arab fund that would provide
no-interest or low-interest loans to poorer Arab countries.
    Several Western diplomats said Wednesday night they were puzzled by
the Syrian motives behind the troop movements, especially since they
were certain to draw the displeasure of influential countries such as
Saudi Arabia and perhaps even lead to a statement by the conference
participants. Crown Prince Fahd of Saudi Arabia, who is representing
his country at the conference, was described as ''very upset'' at
Syria.
    The Israeli radio Wednesday night quoted Prime Minister Menachem
Begin as saying that Israel would not ''stand idly by if Syria
invades Jordan.''
    This remark reportedly came after he attended a meeeting of the
Parliament's Foreign Affairs and Security Committee.
    A similar statement was made by Israeli leaders in 1970, when Syrian
troops massed at Jordan's borders following a crackdown by Jordanian
authorities against the Palestinian guerrilla movement.
    Arab sources here said the Syrian moves near the Syrian border began
almost a week ago. The Syrian forces were said to have gathered near
the Syrian town of Dera, three miles from Jordan.
    Syria and its political allies such as the Palestine Liberation
Organization have boycotted the summit because of sharp differences
with Jordan, Iraq and Saudi Arabia over the timing of the event and
over Syrian concern that Iraq and its allies might attempt to isolate
Syria politically in the Arab community because of its support of
Iran.
    
ny-1126 2107est
**********

n103  2016  26 Nov 80
 
AM-IRAQ-U.N.
c.1980 N.Y. Times News Service
    UNITED NATIONS - Olof Palme, the special United Nations envoy in the
Persian Gulf conflict, said Wednesday that he had won an ''agreement
in principle'' from Iraq and Iran for freeing 63 merchant ships
trapped in the Shatt al-Arab waterway.
    Palme, former prime minister of Sweden, called this the ''first
little ray of hope'' in the war. If carried out, he said, the accord
would imply that a limited cease-fire would have to be declared the
length of the waterway, which separates the two countries at the head
of the Persian Gulf.
    However, he acknowledged to reporters that several ''technical''
problems remained before the ships could move out. Iran must allow
Iraq to dredge the channel and clear it of mines and shells. It is
unclear whether Tehran will agree to this.
    Iraq is also insisting that the ships fly a Red Cross flag,
rejecting the blue and white flag of the United Nations. Baghdad
claims full sovereignty over the waterway and does not want any
suggestions that the channel is under international control. Until
Iraq's troops struck into Iran to back this and other claims in
September, the two countries jointly administered the waterway.
    Palme said he intended to return to Iraq and Iran on his peace
mission, probably in mid-December or January.
    
ny-1126 2319est
**********

n303  2207  26 Nov 80
 
BC-TRANSITION-11-27
    By Jerome R. Watson
     (c) 1980 Chicago Sun-Times (Field News Service)
    WASHINGTON-President-elect Reagan's chief aide in the transition to
a new administration has discounted the idea that Reagan's so-called
''Kitchen Cabinet,'' which is dominated by millionaire businessmen,
is controlling the selection of a Reagan Cabinet.
    That's not an accurate perception, Edwin Meese III told a press
conference here. ''Their task...was to develop names from which a
president could select his Cabinet. Now they did that function, and
by no means have they been influential in deciding which of a list of
names (will be chosen).''
    Meese said the list of prospective Cabinet nominees being studied by
Reagan has grown to include four to l2 names for each post, ''and in
a number of cases the president-elect himself felt there were names
that were not on that list that he put back on the list or put on the
list on his own motion.
    So, I would say that the only person who has significant influence
on the selection of the Cabinet is the president-elect himself. That
idea that any other group is manipulating that thing is totally false.
    Meese's strong comments may have reflected some embarrassment in the
Reagan entourage over a statement by one millionaire member of the
Kitchen Cabinet, Alfred S. Bloomingdale, that ''Running the
government is like running General Motors.''
    That statement by the former board chairman of the Diners Club
revived memories of the comment by former President Dwight D.
Eisenhower's secretary of defense, Charles Wilson, that what was good
for General Motors was good for the country.
    Asked whether he thought running the government was like running
General Motors, Meese rejoined facetiously that I've never run
General Motors, so I couldn't really say. But he then went on to draw
a careful distinction between GM and the federal government,
presumably to put to rest any suspicion that Reagan might not see a
difference.
    Meese said business-like approaches - concerning efficiency, cost
control, effectiveness, good organization, good staffing - could be
applied to government and in that sense there is a similarity between
running GM and the government.
    ''At the same time, I wouldn't want to say that - considering the
way some corporations are run in the United States - we would want to
use that as a model for the federal government,'' Meese said with a
touch of irony.
    ''I think there are some specific differences in terms of running
any government at any level that make it different from running a
business. . . You have people politically shooting back at you . . .
You have also a whole difference in the bureaucracy, the ability to
hire and fire and so on. So I think there are some similarities, but
also some definite differences.''
    Meese also said there is ''a lot of enthusiasm on Capitol Hill'' for
cutting the budget, and that most of the congressional advice to
Reagan has been to ''be sure that we come in with enough of an
approach to budget cutting so we can make some real inroads.''
    He said Reagan could be expected to deliver, in essence, on his
campaign pledge to seek a l0 percent tax cut early in l98l.
    ''It's highly likely that such a measure . . . as part of a
comprehensive economic program - which will all be introduced at the
same time - that that will be the first priority. . . It will be
along the lines basically of what the governor campaigned on in the
election.
    On foreign policy questions, Meese said Reagan and top aides were
receiving daily briefings from the Central Intelligence Agency on the
situation in Poland, where labor unrest has raised the specter of
Soviet intervention. He said the Reagan camp recognizes ''the
potential world danger that is present there. . . We're keeping a
very close watch on it.''
    He said Sen. Charles H. Percy (R-Ill.), prospective chairman of the
Senate Foreign Relations Committee who is in Moscow this week for
talks with Soviet leaders, was not carrying any specific messages to
the Soviets from Reagan.
    As a result of conversations Percy had with Reagan foreign policy
advisers before leaving for Moscow, Meese said, Percy will be able
''to generally reflect the views of the president-elect - but no
specific message.''
    Asked what steps Reagan will take if the American hostages remain in
Iran when Reagan takes the oath of office on Jan. 20, Meese said,
''We have people following that very closely'' but ''in all
probability, your best approach to that situation is not to in
advance talk about what you're going to do until you're ready and are
in the process of doing it.''
    Meese also proclaimed the transition process to be proceeding
''ahead of schedule,'' although he added that it was not certain
whether Reagan would announce his Cabinet choices next week, the week
after, or even during the third week of December. Earlier, Reagan
said he planned to announce his Cabinet early in December.
    The Reagan transition office here announced that a Reagan interview,
dealing with the president-elect's career in sports broadcasting,
will be aired on CBS during the halftime break in the Chicago
Bears-Detroit Lions game.
     ENDIT WATSON
    
ny-1127 0051est
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n500  2211  26 Nov 80
 
BC-EARLYSKED-11-27
    Following is an early sked of the Field News Service:
    
    WASHINGTON (Watson - Sun-Times - TRANSITION) - President-elect
Reagan's chief aide in the administration transition discounts the
idea that Reagan's ''Kitchen Cabinet,'' which is dominated by
millionaire businessmen, is controling the selection of the Cabinet.
(900) FNSPM
    
    MOSCOW (Wade - Telegraph - POLE) - As Solidarity continues to flex
its muscles, the Kremlin puts pressure on Poland's leaders-while
Western diplomats say it could switch to stronger tactics if
communist orthodoxy is further undermined in that country. (1,250)
FNSPM
    
    MOSCOW (Wade - Telegraph - PERCY) - The Soviet Union will
''co-operate as an equal partner'' with the U.S. if Washington is
ready to do the same, President Leonid Brezhnev tells Sen. Charles
Percy, chairman-designate of the Senate Foreign Relations Committee.
(400) FNSPM
    
    BAHRAIN (Copps - Telegraph - WAR) - Iran claims its planes
successfully carried out the biggest air raid of the war against Iraq
and destroyed important oil installations, while new hints are given
that some of the hostages may be released under certain conditions.
(550) FNSPM
    
    PEKING (Earnshaw - Telegraph - GANG) - On trial for her life,
Chairman Mao's widow, Jiang Qing, takes the stand for the first time
in the ''Gang of Four'' case-answering ''I don't know'' to virtually
every question. (550) FNSPM
    
    CHICAGO (Royko - Sun-Times - ROYKO) - Although some people catch and
eat pigeons, they are not recommended for Thanksgiving dinner-and if
you eat your pet cat, remember to remove the bell from its collar
before cooking to avoid making a tinkling noise every time you burp.
(900) FNSPM
    
ny-1127 0113est
**********

n504  2240  26 Nov 80
 
BC-WAR-11-27
    EDITORS: The following is from the London Telegraph and is for use
only in the United States and Canada.
     By Alan Copps
     Daily Telegraph, London (Field News Service)
     BAHRAIN-Iran claims that its planes have successfully carried out
the biggest air raid of the nine-week old war and destroyed important
Iraqi oil installations.
     The raid, on the town of Kirkuk, destroyed nine storage tanks
containing one million barrels of jet fuel, two pumping stations,
pipelines and seriously damaged a nearby air base, the Iranian
military command said Wednesday.
     The attack followed the announcement two days ago that Iraq has
resumed pumping oil from fields around Kirkuk through its pipeline
across Turkey to the Mediterranean. But an Iraqi communique said the
bombs had fallen on civilian targets in Kirkuk, killing three people
and injuring 26. It said that three Iranian aircraft were downed
during the raid and that one Soviet-built Iraqi fighter had crashed.
     Iraq said its own aircraft bombed the town of Khorramabad,
destroying storage tanks, a power station and 150 military vehicles
at a supply depot.
     Iran admitted this raid but again said civilian targets were hit.
The bombing left the town's main square littered with bodies, said
Tehran radio.
     As the air war escalated, reports of fighting on the ground
remained equally conflicting. Iran said its troops fought successful
actions near Abadan, Susangerd, Dezful, Gilan-e-Gharb and other
points along the disputed border. The total number of Iraqis said to
have been killed was more than 200.
     An Iraqi communique said enemy attacks had been blunted through the
oil-rich province of Khuzestan, which its troops invaded in September.
     One news agency calculated Wednesday that since last Sunday Iran
claimed to have killed a total of 925 Iraqis. Iraq claimed to have
killed 217 Iranians in the same period. None of thse claims and
counter-claims can be independently verified.
     Meanwhile in Beirut, Hojatoleslam Rafsanjani, speaker of the
Iranian parliament, who is on a tour of Arab states to explain Iran's
position repeated that no cease-fire would be considered until Iraqi
troops had withdrawn completely from Iranian territory.
     He accused Saudi Arabia, Jordan and Kuwait of aiding Iraq with U.S.
connivance.
     But he also repeated that if the United States meets some of the
four conditions set by the Iranian parliament, Iran will release some
of the 52 hostages held in Tehran.
     ''The United States makes a certain step, meaning, if it partially
meets the Iranian conditions, we will set free a group of the
hostages,'' he said.
     The conditions are: an American pledge not to interfere in Iranian
affairs, the unfreezing of Iranian assets, the dropping of all claims
against Iran and the return of the shah's wealth.
     Secretary of State Edmund Muskie has said that agreement on the
conditions has been reached in principle. But Iran has demanded a
straight yes or no answer.
     Rafsanjani dismissed the idea that President-elect Reagan might
stage a new raid to try to rescue the hostages.
     ''We are fully aware that he is unable to do anything against Iran.
Our people are ready to make sacrifices. If America wishes though, we
are ready. But I don't think the Americans are so insane as to drive
themselves to destruction,'' he said.
    ENDIT COPPS
    
ny-1127 0143est
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a015  2300  26 Nov 80
PM-Hostages, Bjt,450
Healthy, But Still Hostage
Eds: Meetings resume about 9:30 a.m. EST; prenoon top expected.
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - After a prolonged silence, Iranian authorities are
passing word to the United States that the 52 American hostages are
in good health despite almost 13 months in captivity. There still is
no sign, however, that their ordeal is near an end.
    The assurances about the hostages' health were conveyed to State
Department officials on Thanksgiving eve by Algerian intermediaries
who left Tehran on Sunday after meeting with Iranian officials.
    State Department spokesman John Trattner said the three-member
Algerian team authorized the chief of the American delegation, Deputy
Secretary of State Warren Christopher, to report that all the
hostages are well. He did not say, however, whether the Algerians had
seen the hostages or were merely relaying Iranian reports.
    The United States has had little reliable information about the
hostages' well-being since mail deliveries were stopped by suspension
of commercial air service out of Iran in September following the
outbreak of the war between Iran and Iraq.
    After 5 1/2 hours of meetings Wednesday with the Algerians, Trattner
was unable to offer encouragement that the hostages are any closer to
release after 390 days in captivity. Additional discussions were
planned today.
    Trattner said only that the talks were ''intensive and useful'' and
that the Algerians were seeking clarification of certain aspects of
U.S. proposals which were forwarded to Iran through the Algerians two
weeks ago.
    Wednesday's talks came 3 1/2 weeks after the Iranian Parliament
approved four conditions for the release of the American captives: a
pledge of non-intervention in Iranian affairs, release of $8 billion
in frozen Iranian assets, cancellation of more than 300 financial
claims against Iran by American banks and corporations and
confiscation of the wealth of the late Shah Mohammad Reza Pahlavi.
    The Carter administration says it is unable to fully meet the last
two conditions because of legal and political considerations.
    Although Secretary of State Edmund S. Muskie has said he expects the
long-distance negotiations to be protracted, it was clear Wednesday
that the Carter administration was approaching the problem with a
sense of urgency - and it appeared to be getting the cooperation of a
weary Algerian delegation.
    The Algerians' day-long meeting at the State Department began barely
12 hours after they flew here from Algiers. The two delegations also
decided against a Thanksgiving Day respite.
    Although direct negotiations might be quicker, U.S. officials say
the Iranians could try to use such talks for anti-American posturing.
    Trattner said while the administration is not seeking direct
negotiations with Iran, it would be willing to consider that
possibility if circumstances required it.
    
ap-ny-11-27 0200EST
**********

n507  2313  26 Nov 80
 
BC-SKED-11-27
    GOOD MORNING:
    The FIELD NEWS SERVICE daily report will resume following this
budget. The editors may be phoned at 312-321-2801.
    
    
    THURSDAY, NOV. 27, 1980
    
    
    BEHIND THE TOP HEADLINES
    
    OTTAWA (Gress - Sun-Times - CANADA) - Thousands of Canadian Indians
are to demonstrate in Ottawa against the government of Prime Minister
Pierre Trudeau. The government is trying to overhaul the Canadian
constitution, and Indians are angry at Trudeau's refusal to
incorporate in the new constitution the rights and treaties made by
the Indians with the British Crown. (1,500) FNSPM
    
    UNDATED (Drey - Sun-Times - HAITI) - The Haitian boat people risk
their lives daily in hopes of a better life in the United States. And
though this country gives aid to that impoverished island nation,
State Department officials are convinced the problem must be tackled
by striving for a permanent solution in Haiti. That, however, may
prove difficult, because the exodus often works to Haiti's advantage.
(2,350) FNSPM
    
    
    INTERNATIONAL
    
    LIONI, Italy (Schmetzer, Withers - Baltimore Sun - ITALY) - Three
days after the devastating earthquake in Italy, survivors are still
being pulled from under the rubble, and the daunting task of aiding
the homeless and burying the dead keeps growing. (650) FNSPM
    
    UNDATED (Sehlstedt - Baltimore Sun - QUAKE) - The crust of the Earth
is composed of seven or eight giant plates, and when they rub against
one another an earthquake can result. That is what happened Sunday
when the African plate and the Eurasian plate nudged one another too
rudely and caused Italy's worst quake in 65 years. (500) FNSPM
    
    MOSCOW (Wade - Telegraph - POLE) - As Solidarity continues to flex
its muscles, the Kremlin puts pressure on Poland's leaders-while
Western diplomats say it could switch to stronger tactics if
communist orthodoxy is further undermined in that country. (1,250)
FNSPM
    
    MOSCOW (Wade - Telegraph - PERCY) - The Soviet Union will
''co-operate as an equal partner'' with the U.S. if Washington is
ready to do the same, President Leonid Brezhnev tells Sen. Charles
Percy, chairman-designate of the Senate Foreign Relations Committee.
(400) FNSPM
    
    MOSCOW (Barbieri - Baltimore Sun - SUBPERCY) - As Sen. Charles Percy
visits Moscow, the Kremlin continues to send what are described as
''very positive signals'' to the incoming Reagan administration that
it would respond to moves from Washington to end the freeze in
Soviet-American relations. (700) FNSPM
    
    BAHRAIN (Copps - Telegraph - WAR) - Iran claims its planes
successfully carried out the biggest air raid of the war against Iraq
and destroyed important oil installations, while new hints are given
that some of the hostages may be released under certain conditions.
(550) FNSPM
    
    KABUL (Suzuki - Yomiuri Shimbun - AFGHAN) - A Japanese correspondent
in Afghanistan travels through guerrilla-held territory on the road
between Kabul and Jalalabad. Evidence of the guerrillas' local
control abounds: wrecked Soviet tanks and armored cars, and
''tollbooths'' where drivers and passengers willingly contribute to
the guerrillas. (750) FNSPM
    
    PEKING (Earnshaw - Telegraph - GANG) - On trial for her life,
Chairman Mao's widow, Jiang Qing, takes the stand for the first time
in the ''Gang of Four'' case-answering ''I don't know'' to virtually
every question. (550) FNSPM
    
    
    DOMESTIC
    
    WASHINGTON (Watson - Sun-Times - TRANSITION) - President-elect
Reagan's chief aide in the administration transition discounts the
idea that Reagan's ''Kitchen Cabinet,'' which is dominated by
millionaire businessmen, is controling the selection of the Cabinet.
(900) FNSPM
    
    WASHINGTON (Furgurson - Baltimore Sun - KEMP) - Rep. Jack Kemp wants
to hold Ronald Reagan to his campaign commitment to supply-side tax
policy and urges him to fix the economy before taking on existing
social programs-advice that tends to fly in the face of the
apparently growing influence of more traditional Reagan economic
advisers. (500) FNSPM
    
    WASHINGTON (Taylor - Boston Globe - STROM) - Strom Thurmond, who
will replace Edward Kennedy as chairman of the Senate Judiciary
Committee next year, may not be the monster some liberals have
perceived him to be. In the eyes of some congressional staffers,
Thurmond, no longer the ardent segregationist, is now more a creature
of Washington than South Carolina. (1,250) FNSPM
    
    SANTA BARBARA, Calif. (Lewthwaite - Baltimore Sun - REAGAN) -
President-elect Ronald Reagan put aside the cares of impending office
to send the nation a simple Thanksgiving message from his 800-acre
ranch high in the Santa Ynez Mountains. (600) FNSPM
    
    BOSTON (Mohl - Boston Globe - TSONGAS) - Calling for ''humanistic
realism'' in national politics, Sen. Paul E. Tsongas (D-Mass.) is
trying to bridge a gap he sees between traditional liberal ideology
and problems facing the nation today. (500) FNSPM
    
    
    COMMENTARY
    
    CHICAGO (Royko - Sun-Times - ROYKO) - Although some people catch and
eat pigeons, they are not recommended for Thanksgiving dinner-and if
you eat your pet cat, remember to remove the bell from its collar
before cooking to avoid making a tinkling noise every time you burp.
(900) FNSPM
    
    LYNCHBURG, Va. (Nyhan - Boston Globe - RIGHT) - Prominent leaders of
the New Right insist they intend to keep working for conservative
principles outside the Reagan administration, that their concern is
issues. As Richard Viguerie puts it, ''We're trying to put something
together to govern for 50 years.'' (800) FNSPM
    
    UNDATED (Lippman - Baltimore Sun - PENN) - John Pennington died of
cancer in St. Petersburg Sunday. He was only 56. Pennington, through
his work as a journalist, had an impact on current history most
people probably are not aware of. (450) FNSPM
    
    CHICAGO (Simon - Sun-Times - SIMON) - Cities have their own rules,
and if you follow them usually you will be all right-but not always,
as one woman learns when the Gang of Four goes into action on an
elevated train and the other riders leave her to the gang's mercy.
(950) FNSPM
    
    
    BUSINESS
    
    BOSTON (Lowery - Boston Globe - BONDS) - Raised interest rates and
lowered maturity times on federal savings bonds will, it is hoped,
boost participation in savings bond payroll plans and increase
savings generally. (550) FNSPM
    
    UNDATED (Furlong - Sun-Times - ENERGY) - A WEEKLY ENERGY MEMO:
''Worst of both worlds'' is what the synthetic fuels industry may
mean for the western United States, says Colorado Gov. Richard D.
Lamm. (700) FNSPM
    
    
    ARTS & ENTERTAINMENT
    
    UNDATED (Ebert - Sun-Times - CLIPS) - FILM CLIPS: Brief reviews of
movies in general national release. (500) FNSPM
    
    
ny-1127 0216est
**********

n513  2358  26 Nov 80
 
BC-REAGAN-11-27
    By Gilbert A. Lewthwaite
    (c) 1980, The Baltimore Sun (Field News Service)
    SANTA BARBARA, Calif.-President-elect Ronald Reagan put aside the
cares of impending office to send the nation a simple Thanksgiving
message from his 800-acre ranch high in the Santa Ynez Mountains
outside this resort city.
    Standing beside a fence with his four horses in the background,
Reagan, in Western dress and tattered cowboy boots, said Wednesday:
''It's very easy for someone to talk about Thanksgiving when they are
surrounded by this kind of beauty. I am thankful, very grateful.
    ''Maybe sometime in the day everyone should find time to appreciate
what we have in this country.''
    It was a relaxed Mr. and Mrs Reagan who greeted photographers and
one lone reporter-allowed to represent all the other reporters on
conditions that no questions would be asked-at the ranch.
    It was the second time this week that Lyn Nofziger had allowed
reporters to watch but not to question Reagan, a practice which
became frequent during the campaign when Reagan's sometimes imprudent
off-the-cuff remarks appeared to be endangering his election chances,
but less easily understandable now.
    The representative reporter found Mr. and Mrs. Reagan, their black
dog Millie, outside their modest adobe ranch, where they and other
members of their family will assemble for a Thanksgiving dinner
Thursday.
    In his message to the nation, Reagan said: ''We are reminded of the
special freedoms which make our nation the envy of the world. We are
reminded of our unique heritage, of our tremendous accomplishments as
a nation, of our commitment to world peace. And we are reminded of
our fellow Americans in Iran, and we join in the hope and prayer that
next Thanksgiving they, too, can be with their families and friends.''
    His reference was deliberately cautious, reflecting the general
posture of the Carter administration, and avoided raising any
expectations of their imminent release.
    Reagan expressed concern about the brush fires sweeping California,
which have left more than 60,000 acres charred and destroyed about
400 homes.
    ''I am beginning to think it is not going to be a pretty day until
it rains. We have never seen it in the six years we've been here as
dry and dusty.''
    While Reagan was urging people to join in Thursday's national
celebration, a group of his neighbors were expressing their own
concern about the impact of having a president live in their midst at
a meeting with local police, fire and Secret Service officers. About
100 residents of the Refugio Road, a narrow paved strip that winds
6.8 miles up the mountains before reaching Reagan's Rancho del Cielo
(Ranch of the Sky.) took part.
    It has not been decided whether the ranch will be designated an
official presidential residence, the Western White House, but already
the locals fear and invasion of their privacy. They are particularly
concerned about increased traffic.
    The meeting at Florence Brown's Circle Bar B guest ranch, was
described by the Santa Barbara News-Press as the biggest ''at least
since the days during prohibtion when the Refugio area was a haven
for liquor smuggling or the early 19th century period when pirates
harassed the citizenry.''
    ENDIT LEWTHWAITE
    
ny-1127 0300est
**********

a024  0017  27 Nov 80
PM-Thanksgiving Rdp,590
Thanksgiving a Feast of Joy and Sadness
With PM-Turkey Tasters Bjt
By DAVID GREEN
Associated Press Writer
    Thanksgiving was a cornucopia of warmth and joy as restaurateurs
dished out free meals, children lined the streets of New York for a
colorful parade and millions of Americans sat down with their loved
ones for home-cooked feasts.
    But in some homes today there was also sadness as the families of
the American hostages in Iran said prayers for their relatives
spending their second Thanksgiving in captivity and as residents of
San Franciso mourned the 1978 assassination of Mayor George Moscone
and Supervisor Harvey Milk.
    ''I'd be more thankful if I could have my brother home,'' said Carol
Elledge of Kennewick, Wash., who is the sister of hostage Joseph
Hall. ''I'll be thinking about Joe a lot.''
    In Plymouth, Mass., where Thanksgiving was first celebrated as a
harvest feast in 1621, members of the local Wampanoag Indian tribe
decided it was time to stop grieving.
    They had long observed Thanksgiving as a day of mourning for the
America they lost to colonists 300 years ago. But this year the
Wampanoag decided to celebrate a ''Day of Awakening'' for Indians to
gather for speeches and prayers at Plymouth Rock.
    ''It's a sad commentary on history that one culture usurped the
other,'' said Russell H. Gardner of the Wampanoag, who is also known
as Chief Greatmoose. But, he said, ''I don't see anything to be gained
from mourning forever.''
    On New York City's Broadway, thousands of parents and children were
expected to attend the 54th Macy's Thanksgiving Day parade and watch
huge balloons of Superman, Bullwinkle the Moose and Kermit the Frog
carried aloft.
    And in Denver, Bruce Randolph, proprietor of Daddy Bruce's
Bar-B-Que, said he expected to serve 5,000 free Thanksgiving dinners
at his restaurant.
    ''I do it every year, feed 300 or 400 people. This will be the first
time I'll be doing it on this scale,'' Randolph said.
    At Fort Chaffee, Ark., officials said they would serve the
relocation camp's 6,800 Cuban refugees their first Thanksgiving meal.
Traditional American fare - turkey, cranberry sauce and giblet gravy
- was being supplemented by Cuban-style dressing made of black beans
and rice.
    In San Francisco, a candlelight march was organized for tonight to
mark the second anniversary of the deaths of Moscone and Milk, who
were shot at city hall by former Supervisor Dan White, who was later
convicted of manslaughter.
    Milk was an avowed homosexual and the march was scheduled to begin
in the Castro district, an area where many homosexuals live.
    Spokesmen for President Carter and President-elect Ronald Reagan
said the two would spend Thanksgiving quietly with their families -
Reagan at his ranch near Santa Barbara, Calif., and Carter at Camp
David, Md.
    In Southern California, 6,000 pounds of turkey and ham were being
served up to the thousands of firefighters who spent Thanksgiving
battling destructive forest fires.
    ''They're going to have to eat outside just like the Pilgrims did,
but on paper plates with plastic silverware,'' said Charles Coval of
the U.S. Forest Service.
    Meanwhile, Thanksgiving was a double celebration for Minnie
McSpadden of Wichita Falls, Texas, who turned 105 today.
    ''I am very thankful for life, and life is good. Not very many
people live to be 105,'' she said, adding she grew up on a farm in
central Texas where her family dined at Thanksgiving on home-grown
turkey, corn bread dressing and spiced peaches.
    Miss McSpadden said she mostly stays in her home these days and is
''never lonesome.''
    ''For one thing, I watch my little TV and then I can hardly sleep at
night for going over old times . . . the good old times. And we had
good times.''
    
ap-ny-11-27 0317EST
**********

a028  0109  27 Nov 80
PM-Arabs, Bjt,430
Syria Masses Troops on Jordanian Border
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan (AP) - Tension between Syria and Jordan rose today as
Syria massed 20,000 troops and 400 tanks on their border and Jordan's
King Hussein put his armed forces on the alert.
    The buildup was reported by well-informed diplomatic sources and a
Western reporter just returned from Syria. Jordan's information
minister sarcastically confirmed it at a press conference.
    ''We don't know that the troop massing is directed against Jordan,
but we hope it is meant to consolidate the Syrian troops against the
Golan Heights,'' Adnan Abu Aoudeh said.
    Sources said the buildup was taking place 35 miles from the Golan
Heights, which Israel captured from Syria in the 1967 Middle East war.
    They said the action was directed solely against Jordan, which
reacted by putting its armed forces on alert and canceling all
military leaves.
    One official said the Syrian action was intended to ''intimidate''
the 15 Arab leaders attending the three-day Arab summit in Amman.
    ''It may be merely saber-rattling, but the troop massing is making
everyone nervous,'' he said. ''It raises fears of a second front in
the Middle East.''
    Syria led a boycott of the summit by five Arab states and the
Palestine Liberation Organization. Sources said Syrian President Hafez
Assad feared the summit would be used to legitimize the claims of
Iraq, Syria's archrival, in its war with Iran.
    Jordan has openly backed Iraq in the war, which Syria and the PLO
say is diverting attention from the Arab struggle against Israel.
    Syria also has accused Jordan of harboring Moslem Brotherhood
terrorists who have claimed responsibility for numerous bomb attacks
and assassinations in abortive attempts to topple the Syrian regime.
    The Syrian state-run newspaper Al Thawra on Wednesday reiterated
claims that Jordan was trying to pre-empt the PLO, which the Arab
League calls the sole representative of the Palestinian people.
    Relations between Hussein and the PLO have been strained since 1971,
when Jordan expelled Palestinian guerrillas from its territory
because they were using it as a base for attacks against Israel.
    The guerrillas currently base their military operations against
Israel in southern Lebanon, which is under Syrian military control.
    ''The Arab world has never been more disunited,'' a summit official
complained. ''There are deep differences between Syria and Iraq, and
tension is mounting between Syria and Jordan.
    '' It is shameful that an Arab country should think of carrying arms
against another Arab country and still raise slogans of brotherhood
and unity.''
    
ap-ny-11-27 0409EST
**********

a047  0309  27 Nov 80
PM-War Rdp,350
Iran, Iraq Agree To Let Stranded Ships Out
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran and Iraq have agreed to let 63 stranded
foreign ships sail out of the Shatt al-Arab waterway under the Red
Cross flag, U.N. special envoy Olof Palme says.
    The Swedish Socialist Party leader, fresh from a week-long trip to
Iraq and Iran, told reporters in New York Wednesday that details of
the evacuation operation were being worked out. He did not elaborate.
    Sources close to the Iraqi leadership in Beirut said a temporary
cease-fire limited to the 120-mile-long Shatt al-Arab area on the
northern rim of the Persian Gulf would be proclaimed by both sides to
allow the ships out.
    U.N. Secretary-General Kurt Waldheim proposed the partial standdown
in mid-October. Iran quickly accepted it but Iraq initially was
non-committal. Palme apparently got Iraq's approval on his latest
mission.
    Most of the ships are stranded in the 10-mile strip of the waterway
between Iran's besieged oil refining city of Abadan and the port of
Khorramshar, most of which has been taken by invading Iraqi forces.
    Many of the ships have been damaged by shell-fire and sniper's
bullets. Some crewmen have swum to shore and others have fled in
daring nighttime escapes, but most ships are still manned.
    Iraq invaded Iran Sept. 22 to establish full control over Shatt
al-Arab, Iraq's only waterway to the Persian Gulf. Abadan is Iran's
last major stronghold on the eastern bank of the estuary.
    Iran's official Pars news agency said the heaviest fighting
Wednesday night raged at the Mahshahr highway juncture northeast of
Abadan and at the northern, eastern and southern approaches of
Susangerd, 85 miles to the north.
    Pars claimed 390 Iraqis were killed in raids against Iraqi lines
around Abadan and on the outskirts of Susangerd, which is 35 miles
from Ahwaz, capital of Iran's oil-rich Khuzistan province.
    Western military observers believe Iran's claims are exaggerated,
and that Iraq has more or less maintained the same positions it seized
when it invaded more than two months ago.
    
ap-ny-11-27 0608EST
**********

a048  0312  27 Nov 80
PM-Quotes,130
Current Quotes
By The Associated Press
    ''I'd be more thankful if I could have my brother home.'' - Carol
Elledge of Kennewick, Wash., commenting as her brother, Joseph Hall,
went through his second Thanksgiving as a hostage in Iran.
    ---
    ''There's not one person killing little children in Atlanta. I'm
absolutely certain of that. I would stake my professional reputation
on that.'' - Former Los Angeles Police Capt. Pierce Brooks who has
gone to Atlanta to help solve the deaths and disappearances of 15
black children.
    ---
    ''After eating turkey every day, they'll still be eating it with
their families on Thanksgiving Day. They don't lose their love for
turkey.'' - Nancy Rodriguez of Swift and Co. discussing the work of
about a dozen Swift employees who work part-time as turkey tasters in
Oak Brook, Ill.
    
ap-ny-11-27 0611EST
**********

n554  0528  27 Nov 80
 
BC-SUMMARY-3takes-11-27
     Editors:
     Following is a complete summary of today's FIELD NEWS SERVICE
report. The editors can be reached at (312) 321-2801.
    
    
    THURSDAY, NOV. 27, 1980
    
    
    BEHIND THE TOP HEADLINES
    
    OTTAWA (Gress - Sun-Times - CANADA) - Thousands of Canadian Indians
are to demonstrate in Ottawa against the government of Prime Minister
Pierre Trudeau. The government is trying to overhaul the Canadian
constitution, and Indians are angry at Trudeau's refusal to
incorporate in the new constitution the rights and treaties made by
the Indians with the British Crown. (1,500) FNSPM
    
    UNDATED (Drey - Sun-Times - HAITI) - The Haitian boat people risk
their lives daily in hopes of a better life in the United States. And
though this country gives aid to that impoverished island nation,
State Department officials are convinced the problem must be tackled
by striving for a permanent solution in Haiti. That, however, may
prove difficult, because the exodus often works to Haiti's advantage.
(2,350) FNSPM
    
    BOSTON (Richman - Boston Globe - CPUSA) - A COMMENTARY feature: The
Communist Party of the USA threw itself a 61st birthday party
recently, but after those 61 years it is harder than ever to see why
the party, which really does not seem to understand America, has a
hold on otherwise intelligent people. (800) FNSPM
    
    WASHINGTON (Curry - Newhouse - SUPPLYSIDE) - Reagan is promising a
supply-side income tax cut in 1981. What is supply-side economics and
what does it mean to the average American? (900) FNSPM
    
    
    INTERNATIONAL
    
    LIONI, Italy (Schmetzer, Withers - Baltimore Sun - ITALY) - Three
days after the devastating earthquake in Italy, survivors are still
being pulled from under the rubble, and the daunting task of aiding
the homeless and burying the dead keeps growing. (650) FNSPM
    
    CHICAGO (Sun-Times - RELIEF) - Famed tenor Luciano Pavarotti will be
featured in a benefit concert by the Chicago Lyric Opera on Dec. 7 to
help raise funds for survivors of last weekend's earthquake in his
native Italy. (200) FNSPM
    
    UNDATED (Sehlstedt - Baltimore Sun - QUAKE) - The crust of the Earth
is composed of seven or eight giant plates, and when they rub against
one another an earthquake can result. That is what happened Sunday
when the African plate and the Eurasian plate nudged one another too
rudely and caused Italy's worst quake in 65 years. (500) FNSPM
    
    MOSCOW (Wade - Telegraph - POLE) - As Solidarity continues to flex
its muscles, the Kremlin puts pressure on Poland's leaders-while
Western diplomats say it could switch to stronger tactics if
communist orthodoxy is further undermined in that country. (1,250)
FNSPM
    
    MOSCOW (Wade - Telegraph - PERCY) - The Soviet Union will
''co-operate as an equal partner'' with the U.S. if Washington is
ready to do the same, President Leonid Brezhnev tells Sen. Charles
Percy, chairman-designate of the Senate Foreign Relations Committee.
(400) FNSPM
    
    MOSCOW (Barbieri - Baltimore Sun - SUBPERCY) - As Sen. Charles Percy
visits Moscow, the Kremlin continues to send what are described as
''very positive signals'' to the incoming Reagan administration that
it would respond to moves from Washington to end the freeze in
Soviet-American relations. (700) FNSPM
    
    MOSCOW (Barbieri - Baltimore Sun - POET) - A Leningrad poet is
arrested and sentenced to 15 days in jail about a week after she
participated in one of the opening programs of a projected year-long
series of unofficial cultural events. (200) FNSPM
    
    BAHRAIN (Copps - Telegraph - WAR) - Iran claims its planes
successfully carried out the biggest air raid of the war against Iraq
and destroyed important oil installations, while new hints are given
that some of the hostages may be released under certain conditions.
(550) FNSPM
    
    KABUL (Suzuki - Yomiuri Shimbun - AFGHAN) - A Japanese correspondent
in Afghanistan travels through guerrilla-held territory on the road
between Kabul and Jalalabad. Evidence of the guerrillas' local
control abounds: wrecked Soviet tanks and armored cars, and
''tollbooths'' where drivers and passengers willingly contribute to
the guerrillas. (750) FNSPM
    
    PEKING (Earnshaw - Telegraph - GANG) - On trial for her life,
Chairman Mao's widow, Jiang Qing, takes the stand for the first time
in the ''Gang of Four'' case-answering ''I don't know'' to virtually
every question. (550) FNSPM
    
    PEKING (Earnshaw - Telegraph - WARN) - Communist Party Secretary
General Hu Yaobang says a third world war can be postponed or ''even
prevented'' if peace-loving countries move to stop Soviet
expansionism. (100) FNSPM
    
    LONDON (Glover-James - Telegraph - CHARLES) - Buckingham Palace and
the Australian government deny reports that plans have been made for
Australian Prime Minister Malcolm Fraser to attend a wedding between
Prince Charles and Lady Diana Spencer next year. (500) FNSPM
    (MORE)
    
ny-1127 0830est
**********

a074  0601  27 Nov 80
PM-Arab Insert, a028,50
AMMAN, Jordan Insert after 9th graf: Jordan has xxx against Israel
    One summit resolution called on the warring countries to cease fire
immediately and seek a settlement ''based on the restoration of
Iraq's rights to its land and waters.'' The resolution did not go as
far as to support Iraq's war efforts against Iran, and the cease-fire
call was based on ''a keenness to preserve Arab-Islamic ties.''
    Syria also: 10th graf
    
ap-ny-11-27 0900EST
**********

a075  0604  27 Nov 80
PM-Arab 1st-Ld, a028,150
Eds: New grafs 2,3, on summit, Hussein says boycotters ''trying to
stab Iraq in the back''
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan (AP) - Tension between Syria and Jordan rose today as
Syria massed 20,000 troops and 400 tanks on their border and Jordan's
King Hussein put his armed forces on the alert.
    Hussein, hosting the 15-nation Arab summit here, addressed the
closing session today accusing Syria, Libya and other boycotting
states of ''shamefully trying to stab Iraq in the back'' by siding
with ''non-Arab'' Iran in the Persian Gulf war.
    In his speech, the 44-year-old Jordanian monarch warned against
deepening the Arab split over the two-month-old gulf war, exhorting
the Arabs to patch up their differences and avert further
deterioration in their relations.
    The Syria-Jordan border military buildup was reported by
well-informed diplomatic sources and a Western reporter just returned
from Syria. Jordan's information minister sarcastically confirmed it
at a press conference.
    ''We don't: 3rd graf
    
ap-ny-11-27 0904EST
**********

a078  0703  27 Nov 80
PM-Queen's Father,250
Father of Freed Hostage Injured
    WINTHROP, Maine (AP) - Harold Queen, father of freed hostage Richard
Queen, was injured in an automobile accident while driving to a
holiday get-together with his son, authorities said today.
    The elder Queen, 64, was hospitalized in satisfactory condition
Wednesday after he suffered head cuts, fractured ribs and bruises when
his 1974 Peugeot slid off an icy road, plowed through a fence and
struck several small trees, Winthrop police said.
    ''He was on his way to Burlington, Vermont, to spend Thanksgiving
with his son Richard and a few close friends,'' said Kennebec Valley
Medical Center spokesman Bryant Jones.
    A passing motorist took him to Winthrop Area Medical Center and he
was transferred by ambulance to Augusta.
    His son was notified in Washington late Wednesday afternoon, just
before he was to leave for Vermont, but Jones did not know whether
Queen planned to visit his father in the hospital.
    ''His father asked him not to,'' Jones said.
    Queen's father is expected to remain in the hospital until at least
Friday. Queen's mother is traveling in Europe, Jones said.
    Queen spent his last Thanksgiving holiday in Iran with the 52
Americans still being held hostage in Tehran. He was released in July
when his captors were unable to diagnose what American doctors later
said was multiple sclerosis.
    Queen has since returned to work in Washington, and his father said
this week that his son plans to return to embassy duty in Western
Europe sometime next summer. ''A country where the chance of an
embassy takeover is nil,'' the elder Queen said.
    
ap-ny-11-27 0948EST
**********

a212  1100  27 Nov 80
AM-Hostages,600
URGENT
Iranian Government Sources Say Preparations Stepped up to Transfer
hostages to Government Control
By The Associated Press
    Iranian government sources said Thursday that preparations have been
stepped up for transferring the 52 American hostages from the custody
of the U.S. Embassy militants to the Iranian government but denied
reports the transfer had occurred.
    Details of the transfer, agreed to earlier this month by government
authorities and the militants, were discussed in renewed talks during
the past several days, the government sources said.
    A man at the official Pars news agency who declined to be identified
by name also denied reports the transfer had taken place. He said in
a telephone interview from The Associated Press in Beirut that he had
received dozens of calls on the report, adding ''If such a thing did
occur Pars should be the first to know. But Pars has heard of no such
thing.''
    The proposed transfer, endorsed by revolutionary leader Ayatollah
Ruhollah Khomeini, is said to be in the hands of Prime Minister
Mohammad Ali Rajai and his officials.
    Rajai and his top aides were out of Tehran on Thursday and spokesmen
for the embassy militants also were unavailable for comment.
    Rajai has said the government will take over responsibility for the
hostages in accordance with the Nov. 2 decision of the Iranian
Parliament, the Majlis, in placing the matter in the hands of the
government.
    The Majlis adopted four conditions to be met by the United States to
win release of the captives and delegated final authority in the
affair to the government. The four conditions are: returning the
wealth of the late Shah Mohammad Reza Pahlavi; unblocking $8 billion
in Iranian assets in U.S. banks; abrogating all lawsuits against Iran
and pledging non-interference in Iranian affairs.
    The embassy militants subsequently met with Khomeini to seek his
approval for the transfer. They told Khomeini they intended to obey
the decision of the Majlis and wanted to take part in the continuing
war with neighboring Iraq.
    U.S. officials called the transfer decision a major breakthrough,
although Secretary of State Edmund S. Muskie cautioned at the time
that the release of the captives ''will require time, patience and
diplomacy.''
    Since then, no details have been released on the timing of the
proposed transfer or the location of the hostages.
    On Nov. 9, a spokesman for Rajai said the militants still had not
turned over custody of the Americans to the government. He said then
he did not know what was behind the delay.
    A delegation of Algerian diplomats met with U.S. officials in
Washington on Thursday as negotiations continued over terms of the
proposed conditions.
    There has been no confirmation of the whereabouts of the hostages
since the unsuccessful U.S. rescue attempt in April. Iranian
authorities have claimed the Americans were transferred to several
locations throughout the country following the abortive rescue
attempt.
    Barricades used for crowd control outside the embassy compound have
been removed in recent days while signs proclaiming ''Death to
Reagan'' (President-elect Ronald Reagan) have appeared alongside those
of outgoing President Jimmy Carter.
    There also has been a decrease in the number of revolutionary guards
on patrol outside the embassy walls and a chain around iron gates at
the embassy's main entrance has been removed.
    However, activity is still in evidence within the grounds of the
complex of buildings and it is impossible to determine whether the
hostages remain under guard inside.
    Rajai has also suggested the militants may be asked to continue to
guard the hostages on behalf of the government.
    The government sources stressed the close relationship between the
militants and leading members of the Rajai administration unlike the
strained relations between the militants and President Abolhassan
Bani-Sadr.
    
ap-ny-11-27 1359EST
**********

a220  1200  27 Nov 80
AM-Arab Summit,Bjt,700
Jordan's Hussein Condemns Iran's Arab Allies
Laserphoto Map NY30
By NICOLAS TATRO
Associated Press Writer
    AMMAN, Jordan (AP) - With 20,000 Syrian troops massed near his
border, Jordan's King Hussein closed the Arab summit Thursday with a
condemnation of Syria and other Arab states for siding with Iran in
the war with Iraq.
    Iraqi President Saddam Hussein, speaking with publishers after the
meeting, accused the United States of causing the conflict. Both Iran
and Iraq have accused the United States of helping the other.
    The conference failed to meet its main stated goal - developing an
alternative to the U.S.-sponsored Camp David accord between Israel and
Egypt, which left the Arab League after signing a peace treaty with
Israel in 1979.
    The 15-nation conference, while not going so far as openly to
support Iraq's war efforts against Iran, adopted a final communique
that recognized Iraq's ''rights to its land and waters.'' It called
for a cease-fire based on ''a keenness to preserve Arab-Islamic
ties.''
    In his address to the closing summit session, the Jordanian king
said ''It is a disgrace that while Iraq is fighting today to recover
its rights and sovereignty over its land and waters . . . Iraq is
being stabbed in the back by an Arab hand.''
    The 46-year-old Jordanian monarch added that support for
''non-Arab'' Iran was a ''new and dangerous trend'' and urged
''resolving our differences in a rational and sensible manner.'' Iraq
is an Arab, Moslem country; Iran, while Moslem, is Persian.
    King Hussein said the meeting's ''crucial accomplishment is the
assertion of the inadmissibility of inter-Arab wars and that no Arab
weapon should be raised against any Arab power irrespective of
motives.''
    He made no direct reference to the 20,000 Syrian troops and 400
tanks moved near the Syria-Jordan border.
    Sources here said the action was directed solely against Jordan,
which reacted by putting its armed forces on alert and canceling all
military leaves. One official said the Syrian action was intended to
''intimidate'' the 15 Arab leaders attending the summit.
    Syria led a drive to boycott the three-day session and was joined by
Libya, Algeria, South Yemen, Lebanon and the Palestine Liberation
Organization. All but Lebanon, which is neutral, side with Iran in the
67-day-old war.
    ''It may be saber-rattling, but the troop massing is making everyone
nervous,'' the official said. ''It raises fears of a second front in
the Middle East.''
    Iraqi President Hussein, speaking with Jordanian publishers after
the close of the conference, said ''There are powers, mainly America,
that pushed the situation to war. These powers meant to hurt Iraq and
Iran, because this serves their own interests . . .
    ''The obnoxious Iranian attitude (in the war) cannot be attributed
to ignorance. It is the result of American machinations.'' The Iraqi
leader added that Baghdad had ''proof'' that Israel was helping Iran
to purchase arms on black markets around the world.
    President Hussein reiterated his offer to remove his troops from
Iran if Tehran recognizes Baghdad's control of the Shatt al-Arab
estuary, Iraq's only link to the Persian Gulf. Iran has repeatedly
refused. A line down the middle of the waterway served as the border
before the war erupted Sept. 22.
    The conference condemned the United States for branding the PLO as a
group of terrorists and rejected as ''inadequate'' U.N. Security
Council Resolution 242.
    The 1967 U.N. document, which serves as the basis of negotiations
for Arab-Israeli peace, refers to ''a just settlement of the refugee
problem'' and not to the Palestinians by name.
    For that reason it is rejected by the PLO, which is recognized by
the Arab League as the legitimate representative of the Palestinian
people.
    The other summit goal was finding an economic plan to narrow the gap
between wealthy Arab oil states and impoverished Arab nations. The
summit adopted proposals drafted by a 20-nation foreign ministers'
meeting last week for economic development of the region and creation
of a European-style cooperation.
    But the final figure on Arab aid by the oil-rich states was $5
billion over the next 10 years, a third of the figure initially
suggested - a possible indication that Persian Gulf states were
dissatisfied over the summit boycott.
    
ap-ny-11-27 1459EST
**********

a221  1212  27 Nov 80
AM-Thanksgiving Rdp, Bjt,630
Snoopy Misses Parade, Thanksgiving Festivities Abound
Laserphoto NY29
By LORRAINE CICHOWSKI
Associated Press Writer
    Snoopy missed the parade, but an airborne Superman was there to take
his place as millions across the nation settled back on Thursday to
watch marches and football games, feast on turkey with stuffing and
enjoy other Thanksgiving Day festivities.
    Thousands of youngsters and adults who lined Manhattan's Broadway
for the 54th annual Macy's parade heralded the debut of a
helium-filled Superman, one of eight giant balloons that drifted over
the march route. But - Good Grief! - for the first time in 12 years,
Snoopy was missing.
    The popular balloon character was dropped from the program Wednesday
night when it burst an arm as the balloon was being inflated.
    Gimbel's 61st annual parade in Philadelphia also was marred when a
van pulling a float collided with the back row of a marching band from
Tipton, Ind. Two unidentified girls were hospitalized.
    Descendants of the Pilgrims, meanwhile, gathered in Plymouth, Mass.,
for the traditonal walk from the waterfront to the First Church for a
worship service. The 52, dressed in Pilgrim garb, represented the
survivors who reached the shores of Plymouth in late 1620.
    Thanksgiving Day was greeted with snow in some parts of the country.
A storm blanketed Illinois and Missouri, with as much as 10 inches
reported in some areas. The National Weather Service said many roads
in Illinois were snow-packed and hazardous.
    By midafternoon, 43 people had died in traffic accidents on the
nation's highways.
    Thanksgiving Day feasts were planned everywhere, for the rich and
for the poor, for meat-eaters and vegetarians.
    Volunteer groups, with money raised by bell-ringing Santas, prepared
turkey dinners in Manhattan for needy families in Harlem, derelicts
on the Bowery and even 50 members of the Guardian Angels, a teen-age
squad who patrol dangerous subways and neighborhoods. One group
offered a turkey-less dinner for vegetarians.
    Once again, in West Jordan, Utah, Chris Ritzakis opened his
restaurant to anyone wanting a free meal. Ritzakis said he expected
600, including some people he planned to bus in from Salt Lake City.
Ritzakis said he also arranged to deliver dinners to shut-ins. 
    ''I started this for the needy ones,'' Ritzakis said. ''I think
that's what I get in here. I don't think I get any greedy ones.''
    Cooks at a mountain command post above California's San Bernardino
National Forest had a hefty order to fill as they cooked tons of
turkey and ham for 2,000 firefighters battling a devastating blaze.
    They also prepared bread, salads, vegetables, cranberries and
pumpkin pie for the weary firefighters, forced to spend the holiday in
the Pilgrim tradition of eating under the trees.
    Also in California, President-elect Ronald Reagan, relaxing at his
Santa Barbara ranch, said he hopes the American hostages in Iran will
not have to spend another Thanksgiving away from their families.
    ''We are reminded of our fellow Americans in Iran and join in the
hope and prayer that next Thanksgiving they too can be with their
families and friends,'' Reagan said.
    President Carter spent Thanksgiving at Camp David, Md.
    The families of the 52 hostages, meanwhile, were looking for things
for which to be thankful as they spent a second Thanksgiving without
their loved ones.
    ''We're assuming he's well, and we're thankful for that,'' said Pat
Lee, wife of Gary Lee, 37, a general services officer. Mrs. Lee and
her daughter planned to visit relatives in West Virginia.
    One former hostage family got bad news. Harold Queen, father of
freed hostage Richard Queen, was injured in an Winthrop, Maine,
automobile accident while driving to a holiday get-together with his
son. Queen, 64, was hospitalized in satisfactory condition.
    For some merchants and shoppers, Thanksgiving Day also meant the
official opening of the Christmas season.
    About 250,000 were expected at Atlanta's traditional ''lighting of
the great tree'' atop a downtown department store. And about 100,000
were expected to jam Kansas City's mid-town shopping center for a
tree-lighting ceremony.
    
ap-ny-11-27 1512EST
**********

a227  1306  27 Nov 80
AM-US-Iran, Bjt,610
Algerian Intermediaries End Talks with U.S. Officials
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - Algerian intermediaries and senior U.S. officials
ended two days of talks on the Iranian hostage crisis Thursday with
no sign that the 52 American captives are any closer to freedom.
    State Department spokesman John Trattner said the next step would be
for the United States to prepare responses to clarifications the
Iranian government has been seeking to American proposals for
negotiating a settlement.
    Trattner said he had no information on reports that preparations are
under way in Iran for the transfer of the hostages from the custody
of the militant Islamic students to the revolutionary government of
Ayatollah Ruhollah Khomeini.
    The U.S. spokesman added, however, that the Carter administration
has said from the start that such a step ''would be helpful and we
hope that it's true.''
    Iranian government sources said Thursday that preparations for
transfer of the hostages to the custody of the government have been
stepped up, but they denied reports that the transfer had occurred.
    At the State Department, meanwhile, the three Algerian
intermediaries spent four hours with Deputy Secretary of State Warren
Christopher and other top American officials. The Thanksgiving Day
session followed 5 1/2 hours of meetings on Wednesday.
    The Algerians, carrying heavy briefcases, had no comment for
reporters as Christopher bade them farewell after the talks.
    Trattner said Algeria's Ambassador to Iran, Abdelharim Gheraib, and
the chairman of the Central Bank of Algeria, Mohammad Seghir
Mostafai, planned to return to Algiers. The third envoy, Rehda Malek,
Algeria's ambassador to Washington, planned to remain here.
    Trattner held out the possibility that Christopher may make a return
trip to Algeria with a new message for Iranian authorities in the
coming days. He said Christopher briefed President Carter by telephone
Wednesday on the talks and planned to do the same on Thursday. Carter
was spending the holiday at his Camp David, Md. mountaintop retreat.
    Christopher flew to Algeria on Nov. 10 carrying the American
response to Iran's four conditions for releasing the captives.
    Trattner repeatedly refused to be drawn into a discussion of whether
the gap between the two countries has narrowed, although at one point
he said the Iranians have ''taken pains to examine our response to
their proposals very carefully.''
    The office of Prime Minister Mohammad Ali Rajai said last weekend
the Iranian government would seek a ''yes'' or ''no'' answer from the
United States to its four conditions. But Trattner said, ''I would
like to steer you away from assuming there is a 'yes' or 'no'
situation existing here. All the signs indicate that it is rather the
other way.''
    Trattner was asked whether he had a Thanksgiving Day message of hope
that the crisis, now in its 390th day, might soon be resolved.
    ''Even though it is Thanksgiving, I would like to refrain from
projecting a hopeful attitude. It's not that I want to project an
unhopeful attitude. I'm not pessimistic. I'm not optimistic. We are
simply approaching it seriously. They are approaching it seriously and
we are going to work for a resolution of the problem as soon as it
can be brought about.''
    The Algerians had sought clarification as to why the United States
was not able to comply fully with Iran's demands for the return of the
wealth of the late shah, Mohammad Reza Pahlavi, and for cancellation
of some 300 claims against Iran by American banks and corporations.
    It is assumed that the other two demands - a U.S. pledge of
non-interference in Iran's internal affairs and the unblocking of more
than $8 billion in frozen Iranian assets - are not major issues.
    
ap-ny-11-27 1605EST
**********

n037  1355  27 Nov 80
 
AM-IRAQ-DELEGATION
By WILLIAM BORDERS
c.1980 N.Y. Times News Service
    London - An Iranian government delegation is expected in London
Friday, on a tour of European capitals to explain Tehran's position
in the Middle East war.
    The Foreign Office, announcing the visit Thursday, said that Lord
Carrington, the foreign secretary, would meet with the Iranians, and
that he would also use the occasion to press for the release of four
British citizens - three Anglican missionaries and a businessman -
who have been held in Iranian prisons for several months.
    Diplomatic sources here said it was unlikely that the subject of the
American hostages in Iran would come up, since the British are wary
of intruding into what appear to be delicate negotiations between the
Iranians and the Americans.
    ''But we really haven't an idea how it will go, or precisely who
will be at the meeting,'' a British diplomat said.
    The Iranians have told the British that the delegation coming here
Friday will be headed by Deputy Agriculture Minister Mohammed
Rafsanjani. But he was also supposed to be at a meeting Tuesday in
Bonn, the first stop on the diplomatic tour, and he did not turn up.
    The Iranian delegation at that meeting, with West German Foreign
Minister Hans-Dietrich Genscher, was instead headed by Mehdi Navab,
the charge d'affaires in Bonn, who is also expected here Friday,
along with a man named Khatemi, about whom the British know nothing
further. It was thought here that the Iranians are also planning to
visit France, Yugoslavia and Italy.
    Rafsanjani's brother, Ayatollah Hashemi Rafsanjani, who is the
speaker of the Iranian Parliament, is making a similar tour of Middle
Eastern countries. He met with officials in Lebanon earlier this
week, and in Syria before that.
    Through these diplomatic channels, the Iranians have been protesting
that a good deal of international public opinion on the war has sided
with Iraq even though the Iraqis, they say, were the aggressors.
    One reason why, they are said to feel, is that Iraq has been
relatively welcoming to Western journalists, most of whom are still
barred from Iran. On Nov. 16, a government spokesman in Tehran said
that the ban on journalists working for American and British
organizations had been lifted and they were welcome to apply for
visas. But Iranian diplomats based in London, and elsewhere, have
said subsequently that they know nothing about any change in the
rules.
    The deterioration in relations between Britain and Iran culminated
in the decision in August to close the British Embassy in Tehran, and
then, in September, to bring back all but one of its diplomats there.
The one remaining is working out of the Swedish Embassy. The move,
which was caused by fears for the safety of diplomats and diplomatic
property in Iran, stopped short of a formal break, and the Iranian
Embassy here is still functioning normally.
    
ny-1127 1658est
**********

a235  1406  27 Nov 80
AM-Percy-Soviets,580
Sen. Percy Meets With Soviet Defense Chief
By THOMAS KENT
Associated Press Writer
    MOSCOW (AP) - Sen. Charles Percy met with the Soviet defense
minister and other members of the Kremlin military establishment
Thursday and said he delivered blunt warnings on Poland, the Persian
Gulf and a Soviet military buildup. The Soviets had no immediate
comment on the meeting.
    The Illinois Republican, expected to become chairman of the Senate
Foreign Relations Committee when the new Congress meets in January,
said he told Soviet Defense Minister Dmitri F. Ustinov and several of
his top aides that a Soviet military intervention in Poland would
have a ''castastrophic effect'' and destroy any chance of U.S.-Soviet
cooperation ''in our lifetime.''
    Ustinov, who almost never receives Westerners, ''eloquently and
forcefully'' defended Soviet policies during the three-hour session,
Percy said. He declined to say what Ustinov told him, saying he had to
report first to Washington.
    Percy said the meeting and one the day before with Soviet President
Leonid I. Brezhnev were not part of an official mission on behalf of
President-elect Ronald Reagan, but that he had closely coordinated
his trip with Reagan.
    Brezhnev's meeting with Percy was the Soviet leader's first with a
prominent U.S. political figure since five months before the Soviet
intervention in Afghanistan last December.
    In the meeting Thursday, ''I discussed the catastrophic effect that
military intervention in Poland would have, for it would destroy the
foundation of any effort at cooperation,'' Percy said.
    He said he praised the Soviet and Polish governments for their
''restraint'' so far in handling the Polish crisis, which began with a
nationwide strike last summer. The initial labor unrest ended when
the Warsaw regime agreed to strikers' demands that they be allowed to
form independent trade unions free of government control.
    ''If, for instance, anything happened in Poland with the use of
force, probably in our lifetime no major (U.S.-Soviet) agreements
would be possible,'' Percy added.
    Percy said he also told the Soviet defense officials that the
security of the West's Mideast oil supply ''is crucial to us and to
our allies.''
    He added that he would raise the Iran-Iraq war and other Persian
Gulf issues in a meeting scheduled Friday with Soviet Foreign Minister
Andrei A. Gromyko.
    Percy said he cited a series of new Soviet weapons programs,
including the new ''Typhoon'' submarine and SS20 medium-range
missiles, as subjects of concern to the United States.
    ''I explained that the United States must and will increase its
defense spending substantially to avert falling into any inferior
position by the mid-1980s, and that the United States, by its mandate
to Gov. Reagan, has shown that it is fully prepared to support
whatever measures are necessary to that end,'' Percy told reporters.
    ''If we cannot reach agreement on a (strategic arms) treaty, more
effective than SALT II, I said the American mood and the public and
the Congress are prepared to deploy as many strategic systems as
necessary to maintain a balance at any cost,'' Percy said.
    But he added: ''I did mention that in my judgement the Reagan
administration is not eager for a new arms race. We would prefer to
spend our money on other needs.''
    Percy indicated he and the Soviets discussed the prospect that the
provisions of SALT II could be observed in the future - even without
ratification - if talks began on finding a new, mutually acceptable
arms limitation accord.
    
ap-ny-11-27 1706EST
**********

a239  1444  27 Nov 80
AM-War Rdp,660
Laserphotos BAG1, IST6,8, STO1
By STEVE HINDY
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran claimed extensive air strikes against
northern Iraq Thursday and both combatants reported renewed fighting
and heavy casualties in the southwestern Iranian cities of Abadan and
Susangerd.
    Iran said its U.S.-made jetfighters hit five targets in northern
Iraq, destroying a factory, ammunition depots, a radar antenna and
power generating facilities.
    The reported air strikes came days after Iraq was said to have
resumed oil exports through its 700,000 barrel-a-day capacity Turkish
pipeline, which snakes north and then west from the Iraqi oil center
of Kirkuk.
    The northern Iraqi areas, the staging ground for anti-Iranian
Kurdish rebels, have been a frequent target of Iranian raids in recent
weeks.
    Iranian jets have also struck at petrochemical and refinery
construction projects in northwestern Iraq. Yugoslavia's Tanjug news
agency said three Yugoslavs working there were killed Tuesday.
    The official Iranian news agency Pars reported a total of 440 Iraqi
troops were killed in fighting near Susangerd, 30 miles northwest of
the Khuzistan capital Ahwaz, and Abadan, the Iranian oil refining
city 85 miles south of Susangerd.
    Both countries reported heavy fighting on the eastern and northern
approaches of Abadan. Iran claims to have pushed the Iraqis up to six
miles away from the besieged city in the past week's fighting.
    Iran has said Iraqi troops must pull out of war-conquered Iranian
territory before a cease-fire can be discussed.
    Abadan is located on the 120-mile-long Shatt al-Arab waterway,
Iraq's only outlet to the Persian Gulf. Shortly before the war erupted
Sept. 22, Iraq abrogated a 1975 treaty that put the Iraq-Iran border
midstream in the Shatt and demanded that Iran recognize Iraqi
sovereignty over the entire waterway along with about 125 square miles
of disputed border lands.
    The combatants reported helicopter gunship raids on each others'
positions near Abadan and Susangerd. Iran claimed it repulsed two
Iraqi assaults on Susangerd last week in some of the fiercest street
battles in the war. Iraqi capture of Susangerd would open a bridge
over the rain-swollen Karkheh River and a highway to Ahwaz.
    In the fight for the strategic Zagros mountain foothills that
command highway routes west to Baghdad, Iran claimed 30 Iraqis were
killed in a paratroop assault in the Gilan-Gharb area as Iraqi
jet-fighters swooped over the area.
    Despite claims of success by both sides in the seven-day northern
battle, neither appeared to be gaining or losing ground.
    Iran has claimed 1,407 Iraqi deaths in the war since Sunday and Iraq
has claimed 317 Iranian fatalities.
    There were these other war-related developments:
    - In Stockholm, Sweden, U.N. peace envoy Olof Palme, the former
Swedish prime minister, told a news conference that chances for a
quick settlement were ''dim.'' But he added: ''Everything can be
changed overnight as both sides are very conscious of the risks
involved in a prolonged war.''
    - Iraqi President Saddam Hussein, speaking with Jordanian publishers
at the end of the Arab summit in Amman, Jordan, accused America of
causing the conflict and Israel of helping Iran to buy arms on black
markets around the world.
    - Jordan's King Hussein, with 20,000 Syrian troops massed near his
border, closed the three-day Arab summit with a condemnation of all
inter-Arab wars. He said support for Iran, which is Moslem but not
Arab, from Syria and other Arab states boycotting the Arab summit
meant Iraq was ''being stabbed in the back by an Arab hand.''
    - The 15-nation conference, while not going so far as to openly
support Iraq's war effort, adopted a final communique which recognized
Iraq's ''rights to its land and waters.'' It called for a cease-fire
based on ''a keenness to preserve Arab-Islamic ties.''
    
ap-ny-11-27 1743EST
**********

a250  1541  27 Nov 80
AM-Arab Summit, 1st Ld, a220,210
Eds: Recasts lead, updates
Laserphoto Map NY30
By NICOLAS TATRO
Associated Press Writer
    AMMAN, Jordan (AP) - Jordan's King Hussein condemned Syria and other
Arab states that have supported Iran in its war with Iraq, and vowed
Thursday that his country would defend itself to the ''utmost'' if
attacked by Syrian forces reported massed along the Jordanian border.
    His declaration came at the end of a three-day summit conference of
15 Arab nations. The meeting failed to attain its main stated goal -
developing an alternative to the U.S.-sponsored Mideast peace effort
that led to the Egyptian-Israeli treaty and Egypt's suspension from
Arab League membership.
    The summit, while not openly supporing Iraq's war efforts against
Iran, adopted a final communique that recognized Iraq's ''rights to
its land and waters.'' It called for a cease-fire based on ''a
keenness to preserve Arab-Islamic ties.''
    Iraqi President Saddam Hussein, speaking with Jordanian publishers
after the meeting, accused the United States of causing the Persian
Gulf conflict. Both Iran and Iraq have accused the United States of
helping the other.
    In his address to the closing summit session, Hussein said, ''It is
a disgrace that while Iraq is fighting today to recover its rights
and sovereignty over its land and waters ... Iraq is being stabbed in
the back by an Arab hand.''
The 46-year-old, 6th graf
    
ap-ny-11-27 1841EST
**********

a262  1624  27 Nov 80
AM-War Rdp, INSERT, a239,60
BEIRUT, Lebanon, new graf after 13th with court to deal with Iraqi
sympathizers: Iran has claimed xxx Iranians killed.
    Tehran Radio said Iranian authorities are setting up a special court
to deal with Iranians suspected of aiding the Iraqi war effort. The
broadcast called on all loyal citizens to inform upon and cooperate in
the prosecution of ''the enemy's internal mercenaries.''
    There were, 5th from end.
    
ap-ny-11-27 1923EST
**********

a266  1646  27 Nov 80
AM-Iran-OPEC,340
Iran to Attend Next OPEC Meeting
By The Associated Press
    Iran will attend next month's meeting of the Organization of
Petroleum Exporting Countries in Indonesia and will press Iraq to
release Iranian Oil Minister Mohammed Tondgoyan, seized by Iraqi
troops several weeks into the war between the Persian Gulf neighbors,
Tehran radio reported Thursday.
    The state radio also quoted Oil Ministry officials as saying Iran
would soon send a delegation to Vienna for preparatory talks on the
summit, which opens Dec. 15 in Bali.
    The announcement contradicted an earlier report by the Indonesian
government that Iran did not plan to attend the meeting.
    The OPEC session was originally scheduled to be held in Baghdad, but
was postponed as fighting continued between the neighboring oil-rich
countries. The war erupted Sept. 22 after months of sporadic border
clashes. Iraq has offered to withdraw if Iran agrees to recognize
Iraqi sovereignty over the Shatt al-Arab estuary, its only outlet to
the Persian Gulf. Iran has refused and vowed to continued fighting
until all Iraqi troops are driven from the oil-rich province of
Khuzistan in west Iran, site of most of the fighting.
    The Baghdad defense command has said the Iranian oil minister was
seized Oct. 31 by invading Iraqi forces while he was traveling through
Khuzistan.
    He was taken to Baghdad and first appeared in good health.
    However, Iraqi broadcasts later said he was suffering from ''serious
wounds'' and Iran promptly charged that he had been tortured.
    Iran's revolutionary government, which has held the 52 U.S. hostages
for more than a year, accused Iraq of violating international law and
appealed to the world community to demand the return of the oil
minister.
    But there has been no change in the situation and Tehran radio said
Iran will raise the matter again at the OPEC summit.
    Since the outbreak of fighting, both Iran and Iraq have said they
resumed limited oil exports.
    Iran, formerly the second largest exporter after Saudi Arabia,
depends almost entirely on oil exports for revenue.
    
ap-ny-11-27 1946EST
**********

a272  1707  27 Nov 80
AM-US-Iran, INSERT,130
WASHN: SUBS 5th graf pvs with 3 grafs, reports on hostage transfer:
Iranian government xxx had occurred.
    Network news reports Thursday evening quoted foreign sources as
saying the transfer had occurred. CBS News quoted the militants as
saying the hostages had been turned over to the government in the past
three weeks. The network quoted ''usually reliable sources'' as
saying most of the captives were in Tehran's Evin prison with some of
the embassy militants agreeing to serve as guards.
    Questioned about those reports, State Department duty officer Sondra
McCarty reiterated that the department had ''nothing to confirm that
the (Iranian) government has taken over responsibility for them.''
    Iranian government sources said earlier Thursday that preparations
for transfer of the hostages to the custody of the revolutionary
government have been stepped up, but they denied reports that the
transfer had occurred.
    At the State Department, 6th graf
    
ap-ny-11-27 2007EST
**********

n065  1826  27 Nov 80
 
BC-PEOPLE-IN-THE-NEWS Undated
c.1980 N.Y. Times News Service
    Last month in London, Lady Antonia Fraser, the historian and
biographer, and Harold Pinter, the playwright, announced that they
had married and held a wedding reception. But it turned out no
ceremony had actually occurred, because Pinter's wife, the actress
Vivien Merchant, had held up the Pinters' divorce decree.
    Now, seven weeks later, Lady Antonia and Pinter were married
privately Thursday. Following the ceremony, Griffith Williams, a
registry official, came out of his office and told reporters: ''They
kissed as the ring was placed on Lady Antonia's finger. It went very
well.''
    The couple had lived together for five years, in a much-publicized
relationship that began when Lady Antonia left Sir Hugh Fraser, her
husband of 21 years and father of their six children.
    Miss Merchant, who at one point said she thought her husband had
been ''possessed'' by Lady Antonia, bitterly refused for years to go
along with a divorce. The divorce became final Monday, clearing the
way for the Thursday wedding.
    Lady Antonia is the author of several historical biographies,
including ''Mary Queen of Scots,'' ''Royal Charles'' and ''Cromwell:
The Lord Protector.'' Pinter's plays include ''The Birthday Party''
and ''The Caretaker.''
 
    As a promotion gimmick, radio station KRLY in Houston each day picks
a name of a local resident and mentions it on the air. If the person
calls the station, it sends $94 and a case of a popular soft drink.
    The resident chosen Wednesday was George Bush, the vice
president-elect. He wasn't listening to the station, which plays
disco music almost exclusively, but when he got to his office
employees told him his name had been chosen.
    Bush called the station and said he'd have to pass on the prize, but
the station received its own reward from him.
    ''We kind of thought it would be a nice gesture for him to call and
wish listeners a happy Thanksgiving,'' said a spokesman for Bush,
''and he did.''
 
    As part of the continuing festivities celebrating the 80th birthday
of Queen Mother Elizabeth of Britain, a couple of her fellow
octogenarians have been invited to a gala Monday at Buckingham Palace.
    They are James Cagney, who turned 81 on July 17, and Pat O'Brien,
whose 80th birthday was Nov. 11. The two actors have come out of
retirement to appear in the screen version of E. L. Doctorow's novel
''Ragtime,'' which is being filmed at Shepperton Studios outside
London.
    In the 1940s, Cagney, often typecast as a gangster, and O'Brien, who
specialized in Irish priest roles, made several movies together when
they were stars at Warner Brothers.
    A spokesman said Thursday that it was possible the actors would be
asked to perform during their visit to the palace. O'Brien was in a
command performance for Elizabeth in 1946, when her husband, King
George VI, was on the throne.
 
    Cherlynn Hall, wife of an Army warrant officer who is one of the 52
American hostages in Iran, is entitled to unemployment compensation,
a county judge in Ohio has ruled, based on her claim that she lost
her government job because her husband was sent to Iran.
    Judge Floyd D. Harris, in Elyria, Ohio, on Wednesday reversed a
ruling of the State Bureau of Employment Services against Mrs. Hall,
whose husband is Joseph Hall. She filed for compensation in Elyria
last August, when she was staying with her parents, but has since
moved to Silver Spring, Md.
    Mrs. Hall was employed by the Defense Intelligence Agency from 1975
to 1979 in Athens, where her husband was stationed. When he was
transferred to Iran, she was unable to go with him to accept another
government job because President Carter had banned civilian travel to
Iran.
    Ohio unemployment officials denied her request for compensation, on
the ground that a person who leaves a job because of marital
obligations is not entitled to benefits.
    With that ruling reversed, Mrs. Hall is entitled to an as yet
undetermined amount of back compensation.
 
    The National Institute of Social Sciences will present its Gold
Medal, ''for distinguished services to humanity,'' to five Americans
this year. The recipients will be honored Thursday at a dinner at the
St. Regis-Sheraton Hotel in New York City.
    Receiving the medals will be Alexander M. Haig, Jr., the retired
Army general who was commander of NATO forces in Europe; Henry R.
Labouisse, who has headed the United Nations Children's Fund and
Cambodian relief operations; Dr. William J. McGill, the retired
president of Columbia University; William McChesney Martin Jr.,
former chairman of the Export-Import Bank and former chairman of the
Federal Reserve System, and Iphigene Ochs Sulzberger, widow of Arthur
Hays Sulzberger, former publisher of The New York Times and mother of
the current publisher, Arthur Ochs Sulzberger.
    The National Institute of Social Sciences has been awarding its gold
medals for almost 60 years to persons who, according to a brochure,
''have shared one common bond - they have served both their country
and humanity in an effort to bring reality to the American Dream.''
    
ny-1127 2128est
**********

a595  2017  27 Nov 80
BC-Turkish Kurds, Adv 30,800
$adv 30
For Release Sun Nov 30
Turkish Kurds Peaceful But Restive
By STEVEN R. HURST
Associated Press Writer
    YUKSEKOVA, Turkey (AP) - As their tribal brothers in neighboring
Iran and Iraq fight secessionist battles, Turkish Kurds are at peace
with the Ankara government, but growing restive.
    The disillusioned young men in dreary towns like this, where Kurdish
is the first language and Turkish is learned at school, say they feel
mired in the poverty of the region and think the central government
is conspiring to keep them down.
    The Kurds are an ancient people pushed into the mountains of
Mesopotamia by the Assyrians and Persians 3,000 years ago. They now
inhabit areas of Turkey, Iran and Iraq and small corners of Syria and
the Soviet Union but have no nation of their own.
    While uprisings by Kurds seeking home rule in Iran and Iraq have
been frequent in recent years, an estimated 7.5 million Kurds in
Turkey have been relatively quiet since revolts in 1925 and 1930.
    The growing cadres of young Kurds in Turkey meet secretly to talk
about an independent Kurdistan. They lean heavily toward Marxist
ideals, but they are amateurishly organized and deeply divided.
    Some groups say they are pro-Albanian, others pro-Peking, still
others pro-Moscow. The labels are meaningless except to show a general
ideological trend. Many nationalist Kurds would be hard pressed to
explain the difference between the brands of communism they say they
believe in.
    Such labels, however, are an anathema to the central government 700
miles away in Ankara, which is avowedly anti-communist and extremely
sensitive about expanding Kurdish nationalism.
    A sign of the Turkish authorities' sensitivity about the Kurdish
issue showed itself when two Western reporters visiting the area
recently were detained by the military for more than an hour.
    The commander of the military garrison near Yuksekova questioned the
reporters thoroughly. In a phone call to his superior, the captain
said the reporters had been accused by the townspeople of spreading
Kurdish propaganda.
    The reporters had, in fact, only questioned the locals about Kurdish
events in nearby Iran.
    Yuksekova is a one-street town in the southeast corner of Turkey and
has the raw feel of American frontier villages of a century ago. It
lies about 20 miles from the borders of both Iran and Iraq. Those
porous frontiers handle a bustling smuggling trade and Iranian and
Iraqi Kurds visit during periods of calm in the battles at home.
    Townspeople openly asked visitors if they wished to make clandestine
border crossings. ''It's easy to arrange,'' one of them said.
    Two independent Kurdish sources said young Kurds from Turkey
regularly were crossing into Iran and Iraq for training and to carry
supplies such as medicine.
    Turkish politicians, before they lost power in the Sept. 12 military
coup, were inclined toward an easy explanation of Kurdish
nationalism. They blamed communist agents and leftist ideologues.
    Nationalist Kurds see it differently and say they have always gotten
the short end of the contral government's spending.
    Both explanations contain some truth. Poverty is the outstanding
feature in many Kurdish towns and villages and that makes restless
young men ripe for the promises of leftist and Marxist propaganda.
    Unemployment is high, even by Turkish standards. The muddy streets
swarm with men strolling from dingy tea house to dingy tea house.
    People buy just enough wood or coal to burn each day. Living
conditions are cramped and oppressive.
    Turkey's new military regime seems aware of the problems in the
area. One of coup-leader Gen. Kenan Evren's first trips out of Ankara
after he took over was to eastern Turkey. Prime Minister Bulent Ulusu
recently returned to Ankara from the Kurdish region where he reminded
residents the state was spending the equivalent of nearly $12 million
in Van province alone this year.
    The governors of 10 provinces in eastern Turkey met recently to
discuss ''urgent solutions'' for the region. The governor of Van
province told a visiting reporter there are plans to build a college
in the town of Van. The closest university now is in Erzurum, 200
miles northwest.
    The governor, who had been on the job less than two weeks, said the
new military government is doing everything it can ''to speed up
investments'' by the state in the region.
    But angry young Kurds are not satisfied. They also are reported to
have become disenchanted with Turkish leftists. Local Kurdish
intellectuals say the Kurdish nationalists no longer look for guidance
to Marxists in Ankara and Istanbul.
    A long-term solution to the Kurdish time bomb seems possible. But
Turkey must become a much healthier place both politically and
economically before Ankara can be expected to have the moral or
material resources to quell the brewing unhappiness among many of the
young Kurds.
    End Adv for Sun Nov 30
    
ap-ny-11-27 2317EST
**********

a013  2244  27 Nov 80
PM-Hostages, Bjt,610
Hostages Reported in Hands of Iranian Government
Laserphoto WX1
By KEVIN M. COSTELLOE
Associated Press Writer
    WASHINGTON (AP) - Amid reports that Islamic militants have turned
the American hostages over to the Iranian government, the State
Department says its No. 2 man may return to Algeria soon with the next
U.S. response to Iran's demands for ending the 13-month standoff.
    Spokesman John H. Trattner held out the possibility of a return trip
by Deputy Secretary of State Warren Christopher after two days of
talks with Algerian intermediaries ended Thursday apparently without
bringing the 52 hostages any closer to freedom.
    Christopher flew to Algeria earlier this month to deliver the first
U.S. response to Iran's four conditions for releasing the Americans.
    CBS News and NBC News, meanwhile, quoted foreign sources Thursday
night as saying the Iranian government has taken custody of the
hostages from the militants who seized them 391 days ago.
    CBS, quoting ''usually reliable sources,'' said most of the hostages
have been moved from the U.S. Embassy to Tehran's Evin Prison, which
once held some of the late Shah Mohammad Reza Pahlavi's foes.
    NBC said the militants at the embassy claim they no longer are
involved in the hostage matter.
    Iranian government sources denied that a hostage transfer had taken
place, and State Department duty officer Sondra McCarty said U.S.
officials had ''nothing to confirm that the (Iranian) government has
taken over responsibility for them.''
    Trattner said such a move ''would be helpful,'' but he emphasized
that there is no sign the hostages will be released in the near future
and said he is neither optimistic nor pessimistic at this point.
    ''We're just beginning a process that we hope will result in the
release of the hostages, and at the beginning of a process like that
it's not advisable to project any kind of feelings of up or down,'' he
said.
    Trattner said the clarification requested by the Iranians was at
least more than a demand for a yes-or-no answer to their conditions.
    ''I would like to steer you away from assuming there is a yes-or-no
situation existing here,'' he said. ''All the signs indicate that it
is rather the other way.''
    Trattner said the next step is for the United States to respond to
the Iranian demands for clarifications.
    Those responses presumably would be contained in any message
Christopher might take to Algeria for delivery to the Iranians.
    The conditions set by the Iranian Parliament on Nov. 2 were return
of the wealth of the late shah, dismissal of U.S. legal claims against
Iran, a pledge of U.S. non-interference in Iranian affairs and
release of more than $8 billion in Iranian assets frozen in this
country.
    The Algerians in their talks here had been seeking a clarification
of why the United States says it cannot comply fully with the first
two demands. The second two - a pledge of non-interference and freeing
the assets - are not believed to be in dispute.
    The three Algerian intermediaries spent four hours with Christopher
and other top American officials on Thursday, following 5 1/2 hours of
meetings on Wednesday. The Algerians had no comment for reporters
following the talks.
    Trattner refused to say whether the gap between the United States
and Iran has narrowed, although at one point he said the Iranians have
''taken pains to examine our response to their proposals very
carefully.''
    There has been no confirmation of the whereabouts of the hostages
since the unsuccessful U.S. rescue attempt in April. Iranian
authorities have claimed the Americans were transferred to several
locations throughout the country following the aborted mission.
    
ap-ny-11-28 0144EST
**********

a018  2320  27 Nov 80
PM-Names,550
Names in the News
Laserphoto NY14
    LOS ANGELES (AP) - Mary Crosby takes her leave of ''Dallas'' tonight
after shooting oil tycoon J.R. Ewing in a celebrated whodunit that
boosted the TV show's ratings and her own career.
    Miss Crosby says she's not afraid to be leaving the show, even
though she has probably become one of the more famous TV criminals as
Kristin Shepard, J.R.'s former lover.
    Miss Crosby has made one movie since ''Dallas'' and is working on
another.
    She said she has no fear of being typecast as ''the woman who shot
J.R.'' She said: ''It hasn't hurt me yet, so I don't think it's going
to hurt me in the future. I don't know where it's going to take me,
but I guarantee it's not going to hurt.''
    She said she thinks her father, the late Bing Crosby, would be proud
of her.
    ''He never gave me advice,'' she said. ''But he did say do whatever
you can and learn. And I did learn doing Kristin. I think he would
have been proud - because I took a role that was against my type and I
did a good job.''
    ---
    PONTIAC, Mich. (AP) - President-elect Ronald Reagan says he was
doing instant replays as a radio sportscaster long before the days of
television.
    Reagan was a sports announcer from 1932 to 1937 and the replay he
described occurred sometime during that period when he was calling the
Drake Relays, a major track and field event, Reagan said in a taped
interview broadcast by CBS on Thursday.
    ''All day, I'd been talking about the quarter-mile, the 440; this
was going to be the biggest event,'' Reagan said.
    ''Just between events, a public relations man brought the president
of Drake University into the broadcasting booth to say a few words to
the audience, and I sat there and listened to him speak into our
microphone while I watched the quarter-mile event I'd been talking
about all day go by,'' Reagan said.
    ''And when he signed off . . . I just couldn't tell the audience it
was all over, so I just said, 'We're just in time for that event I've
been telling you about.'
    ''And of course I got my watch and I knew that it had to take about
48 seconds and I took them off and around the track and brought them
in 1, 2, 3 with no problem at all in about the required time.
    ''But there was no roar from the crowd,'' Reagan said, ''so I
explained that that was because they were stunned by the sheer
drama.''
    ---
    NEW YORK (AP) - Author Jerzy Kosinski says he has but one wish for a
Christmas gift: to play polo in the Dominican Republic.
    Actress Phyllis Diller says her dream gift would be actor Warren
Beatty.
    And as for director Bob Fosse, who is feeling his age a bit, the
best gift would be ''to get a couple of Christmases back.''
    All three were among celebrities interviewed by the New York Daily
News in an article published Friday about what they were giving for
Christmas and what they would like to get.
    Like several others, actress Ann Miller said the best Christmas gift
would be freedom for the American hostages in Iran.
    ''I won't say what I'm giving,'' Miss Miller said, ''but since I'm
always afraid nobody will buy me anything, I've already bought a new
scarf, a Gucci purse and an amethyst pin, which I will wrap up and put
under the tree and write, ''To Ann, Love Ann.''
    
ap-ny-11-28 0220EST
**********

a020  2338  27 Nov 80
PM-National Briefs,480
    LUMBERTON, N.C. (AP) - A 47-year-old woman has been scheduled to die
in the state's gas chamber Dec. 12 on a conviction of killing her
boyfriend with rat poison.
    Superior Court Judge E. Maurice Braswell rejected Wednesday a
request from Velma Margie Barfield that he overturn her conviction.
The request alleged Mrs. Barfield did not receive adequate legal help
during her trial two years ago.
    James Little, a Fayetteville attorney who has taken up Mrs.
Barfield's defense, said after Braswell's ruling that he would appeal
to the state Supreme Court.
    ---
    ATLANTA (AP) - Health researchers are stepping in where detectives
have failed in an effort to solve the deaths and disappearances of 15
black children in Atlanta.
    The researchers, from the Fulton County Health Department and the
national Center for Disease Control, will meet Monday with police to
try to find a common thread among the cases of the 11 slain children
and the four missing ones, officials said.
    Officials did not elaborate on the techniques the medical sleuths
might use. Police have been stumped by the case.
    ---
    OAKLAND, Calif. (AP) - There were no leads to help solve the
shooting death of a teen-ager and the robbery of at least 10 other
people who attended a rock concert at Oakland Auditorium, police said.
    Sgt. Dan Murray said Thursday that Steven Bucol, 19, of Newark,
Calif., was found shot to death and robbed in a walkway on the third
floor of the auditorium after Wednesday's concert by Kool and the
Gang.
    ''There was a series of robberies of patrons by other patrons,''
Murray said. ''We're not sure what the motive was. There was a lot of
jewelry being snatched, gold chains being ripped off.''
    ---
    OAKLAND, Calif. (AP) - The U.S. Army says it has found that a
civilian security firm can guard Oakland Army Base at less cost than
the military, and has signed a three-year contract with the concern.
    The Army said Wednesday it will pay Stovall's Security Services Inc.
$3.5 million to provide security at the base. It would have cost more
than $6.5 million if the Army continued to use its 24 civilian guards
and 41 military police, officials said.
    The decision to hire private security guards was made following a
year-long study, the Army said.
    ---
    WINTHROP, Maine (AP) - Harold Queen was in satisfactory condition at
a hospital after being injured in a car wreck on his way to a holiday
celebration with his son, Richard Queen, who was freed after being an
American hostage in Iran.
    The elder Queen, 64, suffered cuts, bruises and broken ribs when his
car slid off an icy road and hit several small trees Wednesday,
Winthrop police said.
    He and his son were to meet in Burlington, Vt., to celebrate
Thanksgiving, authorities said.
    
ap-ny-11-28 0238EST
**********

n531  0120  28 Nov 80
 
BC-EDITS-2ndadd-11-28
    x x x receive from outside.
    
    Moscow's diplomatic setback in the U.N. and its loss of face at the
East-West conference in Madrid, which was also partly over the Afghan
invasion, have underscored the Soviet Union's determination to
weather the storm of international outrage in the interest of
strengthening its geo-strategic positions in a very vital but
unstable region. The Russians have not yet succeeded in their
historic goal to gain a warm water port. But there can be no denying
that they are a stepstone away from that dream. Also, with
Afghanistan sufficiently subdued, they are assured of a satisfactory
staging area to further their interests, whether it is in a weakened
Iran, elsewhere in the Persian Gulf region or further south along the
African salient down to the Cape of Good Hope.
    But Moscow's dream is not yet a reality. And having reminded Islamic
and African nations of its determination to trample on Third World as
well as East European nations, Moscow could have miscalcuated. Third
World nations, which Moscow has been assidiously courting, are now on
guard that they too could be victims in the Soviets' geo-strategic
advance.
    
    Germany should boost its NATO share
    (c) 1980 Chicago Sun-Times (Field News Service)
    From this side of the Atlantic, West Germany's economic troubles
look piddling. But while we gird for greater military spending, Bonn
mostly fudges on its pledge to NATO-adding to the friction between
the two.
    Instead of increasing defense outlays 3 percent a year above
inflation, West Germany said it could raise its ante for the common
defense pot only about 1.8 percent in 1981.
    Or it did until Chancellor Helmut Schmidt's recent visit to
Washington. Then came word Schmidt would push to increase arms
spending close to the 3 percent target.
    If so, that's good news. It will hit German pocketbooks-for example,
fuel and liquor taxes will rise-but a higher defense burden should be
bearable. Social spending will still rise about 4 percent.
    Schmidt's motive may be a desire to start on the right foot with
President-elect Ronald Reagan. Fine. Strains with President Carter
worked against harmony in NATO. Now, with Soviet threats to Poland
and elsewhere, warmer relations will be welcome.
    
    Catharsis in China
    (c) 1980 The Baltimore Sun (Field News Service)
    During much of the decade since China began to rein in Chairman Mao
Tse-tung's Great Proletarian Cultural Revolution, the Chinese
Communist Party has been preoccupied with rebuilding the leadership
corps and technical skills the Great Helmsman deliberately smashed.
But history did not wait while Chairman Mao tore his country apart
from the top, and it has not waited while his successors have
rebuilt. With barely a score of years left before the 21st century,
China is in many ways still groping its way to the 20th, a search to
which some Chinese leaders first gave attention a century and more
ago.
    Chairman Mao's successors are like him in being Marxists and in
being no more sure than he was of the detailed route to a stronger
China. They differ from him in their motivating obsession: his was to
make a new human nature; theirs is to make a modern China. Their
method is to stress expertise, at considerable expense to the
political concerns he gave top priority.
    But they do not ignore politics, as they make clear in their
elaborate show trial of the Gang of Four and their sometime allies in
the military. Many now in charge, most particularly Deng Xiaoping
himself, were humiliated and hounded victims of the Cultural
Revolution; a scent of score-settling permeates the trial's
preparations, though the ostensible purpose is to provide a national
catharsis. History has important unanswered questions about the
workings of that turbulent alliance of radicals and army commanders
that marked the early years of the Cultural Revolution.Even more
questions remain about what happened to that alliance as the 1970s
began, and why the general who was Chairman Mao's designated
successor died violently.
    The trial is already offering some of the current leadership's
answers, which promise to be the most comprehensive yet put forth.
Answers will be of great interest to a world still curious about
those Draconian years. But what matters more is whether the trial
will also accomplish what the current leaders say is its broader
goal-to purge the New China of what they count as its founding hero's
greatest error, an attempt to make revolutionary turmoil a permanent
feature of national life. Whether it helps to do that, or proves
merely the high-water mark of Mr. Deng's ascent, will tell much about
whether he and his associates can at last fix China's attention on
the 20th century.
    
    Caution on a weed killer
    (c) 1980 Chicago Sun-Times (Field News Service)
    There's still no formal consensus about the health effects of the
weed killer 2,4-D. The chemical, one of the constituents of Agent
Orange, is still under study by the Environmental Protection Agency
for potential ill effects on human health.
    However, some environmental groups cite medical literature showing
that exposure to 2,4-D can cause spontaneous abortions, fetal
bleeding and birth defects. They've asked the government to take
precautions with the chemical-to prevent potential suffering-even
before the EPA's verdict is in.
    On the theory that exposure to any suspicious chemical should be
minimal, we're heartened that the National Park Service has taken a
first step. Its director has ordered all U.S. park superintendents to
stop using 2,4-D immediately. They can resume its use, in selected
cases, only if no alternate method of weed control is available.
    One can wonder, of course, how many times controlling weeds is a
life-saving process. And note that one person's weed is another's
trailing arbutus. And that billions of pounds-literally billions-of
herbicides, pesticides and other funky chemicals are sprayed,
sprinkled and dumped every year.
    Even so, Dow Chemical Co., one of 2,4-D's chief manufacturers, says
the Park Service decision is distressing. Doubtless it is, from a
corporate standpoint.
    But in the interest of cutting even slightly the volume of gunk we
spread around in the name of progress, it's a good little step.
    Breathe easier, weeds. And people.
    MORE
    
ny-1128 0423est
**********

a036  0129  28 Nov 80
BC-Hostage Denial,80
URGENT
Denies Hostages Delivered to Iranian Govt
    BEIRUT, Lebanon (AP) - One of the Islamic militants occupying the
U.S. Embassy in Tehran denied today that the 49 American hostages
seized in the embassy nearly 13 months ago had been delivered to the
Iranian government.
    ''We have not delivered the hostages to the government yet, and when
we do we will issue a statement announcing it,'' said the militant,
who was reached by telephone from Beirut.
    
ap-ny-11-28 0428EST
**********

n540  0244  28 Nov 80
 
BC-TEMPS-11-28
    TRAVEL
    By John Justin Smith
    (c) 1980 Chicago Sun-Times (Field News Service)
    You don't need to be a weather forecaster or a witch doctor to know
that next Jan. 15 the high temperature in the northern United States
is most apt to be in the 30s and the low is likely to be in the
teens. And the odds are about 1 in 6 it will snow that day.
    With a little luck (bad luck, that is), it will be much colder and
it will snow like the dickens.
    Those statistics are not guesswork. They're from a compilation of
statistics kept over the years and recorded by the International
Association for Medical Assistance to Travelers.
    Then we must agree that a good idea would be to get out of town.
    And we can take the statistics below to show you what kind of
weather you're most likely to find in various warm-weather winter
vacation places. Take a look:
    FLORIDA. Miami has a daily average high of 76 in January and an
average low of 63 and there's rain on five days during the month. The
northern part of Florida can be cool to chilly in January.
Jacksonville, for example, has a January average daily high of 65 and
a low of 47.
    THE BAHAMAS TO THE CARIBBEAN AND BEYOND. Here are some January
average highs, lows and average number of days with precipitation in
a variety of places:
    Nassau, the Bahamas: 77, 66 and six days with measurable rain.
    Negril Beach, Jamaica: 86, 70 and 6.
    Oranjestad, Aruba: 85, 74 and 3.
    Fort de France, Martinique: 83, 70 and 19.
    San Juan, Puerto Rico: 81, 70 and 20.
    Hamilton, Bermuda: 68, 58 and 11.
    St. Thomas, U.S. Virgin Islands: 83, 72 and 7.
    Petitionville, Haiti: 85, 63 and 2.
    MEXICO. The January weather is generally good for the entire
country, with, of course, cooler temperatures in higher places. A
sampling of those January averages for some Mexican places:
    Mexico City: 70, 41 and 2.
    Acapulco: 88, 72 and 1.
    Cozumel: 82, 68 and 8.
    Puerto Vallarta: 84, 63 and 1.
    Oaxca: 77, 47 and zero.
    CALIFORNIA. The state varies widely in January. Let's just sample
those average highs, lows and days with rain for a couple of popular
destinations:
    Los Angeles: 64, 46 and 6.
    San Francisco: 55, 41 and 7.
    San Diego: 62, 46 and 5.
    Palm Springs: 69, 39 and 3.
    THE WEST AND SOUTHWEST. A sampling of average highs, lows and rainy
days:
    Las Vegas: 60, 28 and 1.
    Phoenix: 64, 39 and 2.
    Tucson: 64, 37 and 2.
    Corpus Christi: 67, 49 and 4.
    ELSEWHERE IN THIS BIG WORLD:
    Dakar, Senegal: 79, 64 and zero.
    Nairobi, Kenya: 77, 54 and 5.
    Cairo, Egypt: 65, 47 and 1.
    Marrakech, Morocco: 65, 40 and 7.
    Jerusalem: 56, 41 and 8.
    Caracas, Venezuela: 75, 56 and 6.
    Rio de Janeiro: 84, 73 and 13.
    Buenos Aires: 85, 63 and 7.
    Lima, Peru: 82, 66 and 1.
    Honolulu: 81, 63 and 2.
    Papeete, Tahiti: 90, 72 and 16.
    Hong Kong: 65, 56 and 4.
    Bangkok: 98, 68 and 1.
    Manila: 86, 70 and 6.
    Sydney: 79, 65 and 14.
    Suva, Fiji: 86, 74 and 18.
    And, just for fun, a smattering of January temperatures in places
not known for warm weather in the winter:
    French Riviera: 54, 37 and 9.
    Tehran: 45, 27 and 4.
    Montreal: 21, zero and 17.
    Moscow: 16, 4 and 18.
    Rome: 52, 41 and 8.
    Paris: 43, 34 and 17.
    Athens: 55, 43 and 16.
    Copenhagen: 36, 28 and 17.
    Vienna: 34, 25 and 15.
    Madrid: 48, 36 and 8.
    London: 45, 36 and 6.
    Finally, our annual report on the place you'd truly, truly want to
avoid in January. That month in Eureka in Canada's Northwest
Territory has a daily average high of 27 below zero and an average
low of 40 below.
    ENDIT SMITH
    
ny-1128 0541est
**********

a053  0311  28 Nov 80
PM-War Rdp,600
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq has almost completed building a
57-mile-long wall in Iran's oil-rich Khuzistan Province to protect
Iraqi forces against winter floods and possible attempts by Iran to
''drown'' the invaders by letting loose irrigation dams, an Iraqi
newspaper said today.
    The government-controlled, English-language, Baghdad Observer also
quoted Iraqi engineering corps officers as saying other embankments
were under construction to protect the roads and communication routes
of the Iraqi forces from being inundated by flooding from the Karun
and Karkheh Rivers.
    The Karun runs by the port of Khorramshahr, which the Iraqis seized
last month, and the Kharkheh by Susangerd, about 75 miles to the
north, which both sides have been fighting for the last two weeks. The
report of the wall construction indicated Iraq plans a long siege in
Khuzistan.
    Both Iran and Iraq reported attacking each other's positions
Thursday near Susangerd, which is 35 miles northwest of Ahwaz, the
Khuzistan capital, and near Abadan, the refinery city 10 miles south
of Khorramshahr.
    Iran claimed it killed 440 Iraqis near Susangerd and Abadan and that
its jets destroyed ammunition dumps, power stations, a radar antenna
and a factory in raids on northern Iraq.
    Iran also said its forces killed 30 Iraqis in the Gilan Gharb area,
at the northern end of the invasion front in the foothills of the
Zagros Mountains overlooking highway routes west to the Iraqi capital
of Baghdad.
    Iraq reported killing 76 Iranians and suffering 16 dead along its
300-mile invasion front, but said nothing of Iran's claims, which
military observers believe have been exaggerated since the war began
nearly 10 weeks ago.
    Iraq invaded Sept. 22 aiming to gain sovereignty over the Iranian
east side of the Shatt al-Arab estuary, which divides the two nations
at the southern end of the front and is Iraq's only waterway to the
Persian Gulf.
    Swedish Socialist leader Olof Palme, special envoy of U.N.
Secretary-General Kurt Waldheim, said he got the two sides to agree to
let 63 stranded foreign ships out of the waterway under Red Cross
flags.
    But he said on returning to Stockholm Thursday, ''Neither side
showed any willingness to make peace and took very tough bargaining
positions.
    ''Public opinion is not responsive in either of the nations and
consequently the political conditions for peace are not particularly
good.
    ''But the situation might change overnight. Both sides fear a
head-on collision between the superpowers in the strategically and
economically important area.
    ''But even more they fear a deal between the superpowers, dividing
the area between themselves and this might bring about a change in
their attitude.''
    Today was the 391st day in captivity for the 52 American hostages in
Iran, and the State Department said its No. 2 man, Warren
Christopher, may return to Algeria soon with the next U.S. response to
Iran's demands for ending the crisis.
    U.S. officials just ended talks with Algerian envoys, who reportedly
asked for clarifications of America's position on Iran's demands for
return of the wealth of the late Shah Mohammad Reza Pahlavi,
cancellation of U.S. lawsuits against Iran and release of $8 billion
in Iranian assets frozen in U.S. banks.
    Meanwhile, one of the militants occupying the U.S. Embassy in Tehran
today denied reports the hostages were transferred to Iranian
government custody, as called for by Iran's Parliament when it
announced the ransom terms Nov. 2.
    ''We have not delivered the hostages to the government yet, and when
we do we will issue a statement announcing it,'' the militant said.
    
ap-ny-11-28 0611EST
**********

a059  0336  28 Nov 80
PM-Percy,360
Percy Meets Soviet Foreign Minister
By THOMAS KENT
Associated Press Writer
    MOSCOW (AP) - Sen. Charles Percy met Soviet Foreign Minister Andrei
A. Gromyko today for talks that the Illinois Republican said would
include stern U.S. warnings against any interruption in the flow of
Persian Gulf oil.
    Percy, who is likely to become the new chairman of the Senate
Foreign Relations Committee, said he planned to raise that issue and
the more general problem of the Iran-Iraq war during today's talks.
    On Thursday, Percy told reporters: ''Any effort by anyone to
jeopardize the secure flow of oil from that region would cause us to
react decisively - and there should be no misunderstanding or
ambiguity about this.''
    Earlier, he met with Defense Minister Dimitri Ustinov and with
President Leonid I. Brezhnev, who had not conferred with a top U.S.
leader since five months before the Soviet intervention in Afghanistan
last December.
    Percy says he is not on an official mission for Ronald Reagan,
although he is coordinating his trip closely with the president-elect.
    Percy told reporters he warned Brezhnev a Soviet military
intervention in Poland would have a ''catastrophic effect'' and
destroy any hope of U.S.-Soviet cooperation ''in our lifetime.''
    Labor unrest in Poland since last summer and the Polish government's
concessions to independent unions have raised fears the Russians may
use force to crush the union movement before it spreads to other
Soviet Bloc countries.
    Percy said he also gave the Kremlin blunt warnings about U.S.
concerns over the 85,000 Soviet troops in Afghanistan and the Soviet
military buildup. The Soviets had no immediate comment on Percy's
remarks or the meetings.
    ''I explained
that the United States must and will increase its
defense spending substantially to avert falling into any inferior
position by the mid-1980s, and that the United States - by its mandate
to Gov. Reagan - has shown that it is fully prepared to support
whatever measures are necessary to that end,'' Percy said.
    He added: ''I did mention that, in my judgment, the Reagan
administration is not eager for a new arms race. We would prefer to
spend our money on other needs.''
    Percy is to leave Moscow for Brussels on Saturday.
    
ap-ny-11-28 0635EST
**********

a063  0404  28 Nov 80
PM-Arab Summit,500
Divided Arabs Grant $5 Billion Aid To Poorer Neighbors
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan - The 11th Arab League summit conference approved a $5
billion regional development plan and paid lip service to Iraq's
claims against Iran. But the Syrian boycott blocked plans for a
unified approach to the next U.S. administration.
    Jordan's King Hussein used Thursday's final session to condemn Syria
and other Arab states for their support of non-Arab Iran and vowed to
repulse any attack from the 20,000 Syrian troops massing on the
Jordanian border.
    The conference failed to reach its stated main goal of developing a
comprehensive Middle East peace plan to supplant the U.S.-sponsored
talks between Israel and Egypt. Egypt is suspended from the league.
    Hussein had hoped to carry such a plan to President-elect Ronald
Reagan. He told a news conference after the summit he was willing to
go to Washington after Reagan takes office in January, but only in his
capacity as Jordan's leader.
     There had been speculation the summit would authorize Hussein to
speak on behalf of all Arabs, but the mandate apparently fell through
in the confusion of boycott and the hostility that followed.
    The summit did approve a 10-year development program to narrow the
gap between the oil-rich Arab states and their poorer Arab neighbors.
But the $5 billion earmarked for the project was only a third the sum
initially proposed - an indication the conservative oil producers
were angered by the absence of the more radical countries.
    The Syrian boycott was joined by Algeria, South Yemen, Lebanon,
Libya and the Palestine Liberation Organization. All but Lebanon,
which is neutral, have expressed support for Iran.
    At the end of the three-day conference, the 15 nations which
attended issued a cautious statement recognizing Iraq's ''rights to
its lands and waters'' and calling for a cease-fire ''to preserve Arab
Islamic ties.''
    Iran, while Moslem, is Persian rather than Arab. Iraq is Moslem and
Arab.
    Hussein was explicit in his support for Iraq and his contempt for
Arabs siding with Iran.
    ''It is a disgrace that while Iraq is fighting today to recover its
rights and sovereignty over its land and waters ... Iraq is being
stabbed in the back by an Arab hand,'' the 46-year-old monarch said.
     Well-informed sources say Syria has deployed 20,000 troops and 400
tanks at the Syrian border town of Deraa three miles from the
Jordanian border.
    One Jordanian official dismissed the move as an attempt to
''intimidate'' the ministers' meeting, but Hussein made it clear
Jordan was ready to fight ''if the threats materilize.''
    Hussein stressed he was not responding with a similar deployment,
but sources said the Jordanian armed forces intensified a previosuly
issued alert, and all military leaves were canceled.
     Syria also has accused Jordan of harboring members of the Moslem
Brotherhood, a radical group opposed to the Syrian regime. Last month,
Jordan executed two Syrians convicted of murdering a Syrian Moslem
Brotherhood dissident in Amman.
    
ap-ny-11-28 0703EST
**********

a086  0633  28 Nov 80
PM-War Rdp, 1st Ld, a053,300
Eds: Report new fighting in Abadan, Gilan Gharb, Bani-Sadr visits
Abadan, new grafs 1-5
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq, indicating it expects a long war, has
almost completed building a 57-mile-long wall in Iran's oil-rich
Khuzistan Province to protect Iraqi forces against winter floods and
possible attempts by Iran to ''drown'' the invaders by letting loose
irrigation dams, an Iraqi newspaper said today.
    Both sides reported their troops, tanks and helicopter gunships
engaged around the Iranian refining city of Abadan, at the southern
end of the battlefront on the Shatt al-Arab estuary, and the highway
town of Susangerd, 85 miles to the north.
    Meanwhile, a Baghdad military communique claimed Iraqi troops beat
back an Iranian counterattack in the highlands of Gilan Gharb in the
northern sector of the 300-mile-long war zone, leaving 70 Iranian
troops dead.
    Pars, Iran's official news agency, said Iranian President Abolhassan
Bani-Sadr visited Abadan under enemy fire overnight to underscore his
country's claim that a five-week-old Iraqi siege had been cracked.
Pars said Bani-Sadr, who is commander in chief of Iran's armed forces,
also visited the nearby port city of Khorramshahr, whose western
sector is said to be in Iraqi hands.
    According to Pars, Bani-Sadr, accompanied by his defense minister
and army chief of staff, drove along the 10-mile Khorramshahr-Abadan
highway recently recaptured from Iraq, crossed the Bahmanshir River by
boat for a daring arrival in Abadan and then took a motorcycle ride
into frontline bunkers a few yards from enemy forward lines,
overruling objections by aides. He then set out for a return trip to
his secret frontline headquarters, Pars said.
    The Iraqi government-controlled, English-language, Baghdad Observer
also quoted Iraqi engineering corps officers as saying other
embankments were under construction to protect the roads and
communication routes of the Iraqi forces from being inundated by
flooding from the Karun and Karkheh rivers.
    The Karun: 3rd graf
    
ap-ny-11-28 0932EST
**********

n009  0738  28 Nov 80
 
BC-OPIUM
By MARVINE HOWE
c. 1980 N.Y. Times News Service
    AFYON, Turkey - A decade after curbs on opium poppy production went
into effect, Anatolian peasants are still embittered about them but
have increasingly turned to other crops, such as barley, sugar beets,
wheat, fruit trees and sunflowers.
    This city, whose complete name, Afyonkarahisar, means ''the Black
Castle of Opium,'' has long been the center of poppy production. Now
tall apartment buildings have sprung up on the outskirts where poppy
fields used to be.
    The authorities here claim complete control over the production of
opium poppies and are in the process of reducing it further.
Moreover, the security forces have made important inroads on the
narcotics traffic in general because of more effective law
enforcement nationwide since the military seized power Sept. 12.
    Though international narcotics experts have confirmed that the
regulation of illicit poppies is highly effective in Turkey, they
have expressed concern that it was being used as the main corridor
for traffic from Iran, Afghanistan and Pakistan.
    Afyon is a city of tradition, where unmarried girls still climb the
peak to the ancient citadel and cry out, ''My fate! My fate!'' in
hopes that a husband will appear. The city is celebrated for its
tasty cuisine, cooked with poppy oil, and for particularly savory
meat from cattle and sheep fed on poppies.
    The farmers readily say that the limits on poppy output have
destroyed a way of life, depriving them not only of a valuable cash
crop but also of cooking oil, fodder, heating fuel and medicine.
    At one time opium poppies were grown all over Turkey in acid, rocky
soil where little else would thrive. Under American pressures the
government prohibited production in 1971, to the consternation of
some half a million peasants. The protest was so strong that
cultivation was resumed in 1974 for medical purposes, but only in 7
of the 67 provinces and under stringent controls.
    Now independent experts say Turkey was wrongly accused of being the
main source for the heroin smuggled into the United States. It is
believed that only about 10 percent of the poppy crop used to be
diverted into illicit traffic, with most going for ordinary household
needs.
    People generally view the poppy ban as a form of punishment and
sometimes liken it to the United States arms embargo imposed after
Turkey invaded Cyprus in 1974. ''Have you Americans noted any drop in
drug addiction since the restrictions on Turkish poppy growth?'' an
official asked caustically.
    The strongest indignation is felt among the peasants of Afyon
Province, still the main legal producer. ''What right has the United
States to put limits on our production?'' protested Ali Ozdamar, a
grower and former headman of Cakir, a village near Afyon. ''If this
is a democracy then a peasant should be free to plant what he wants.''
    Vehbi Cengelci, another grower, said that the strict controls and
limits on acreage were ''very troublesome,'' with the result that
more and more peasants were being forced to grow other crops.
    ''They tell us to grow sunflowers, but sunflower oil is no
substitute for poppy oil,'' Cengelci told visitors to his minute
poppy farm. ''Poppy oil is better for cooking and does not give
ulcers, and also cures coughs and kills pain.''
    Poppy production in the province has shown a significant decline
over the past two years, according to Engin Gazilerli, head of the
state Soil Products Office here. This year it was 9,000 tons of dried
opium pods, compared with 25,000 tons in 1978. The number of peasants
involved in the province has dropped from 204,000 in 1978 to 69,000
this year, the official noted.
    ''I am confident that we have production completely under control
and that there is no illegal production in this province,'' Gazilerli
said in an interview.
    
 
    
ny-1128 1041est
**********

a092  0745  28 Nov 80
PM-Percy, 2nd-Ld, a065,550
Eds: Percy says Soviets understand Salt II is dead. Tops with new
grafs 1-12. Minor changes elsewhere for transition.
By THOMAS KENT
Associated Press Writer
    MOSCOW (AP) - Sen. Charles Percy said he told Soviet Foreign
Minister Andrei A. Gromyko today that ''SALT II as such is dead'' and
he claimed the Kremlin leadership was convinced there must be a new
treaty.
    The Illinois Republican, who is expected to become chairman of the
Senate Foreign Relations Committee, conferred with Gromyko for four
hours today in the Kremlin.
    Later, he told reporters: ''I had to clarify for Ambassador (sic)
Gromyko . . .. that in my judgment SALT II as such is dead and they
must accept that.''
    He continued, ''with Afghanistan, it had no chance of passage
whatsoever . . . Negotiations that will take place - and I'm sure they
will take place - must take place on a realistic framework.''
    President-elect Ronald Reagan has said the SALT II arms limitation
treaty signed by President Carter and Soviet President Leonid I.
Brezhnev in 1979 is ''fatally flawed'' and that it must be
renegotiated.
    The Soviets, angered by the U.S. Senate's failure to ratify the
treaty, have publicly insisted that it be approved in its original
form. However, Americans who met with Soviet officials in recent
weeks, said the Soviets seemed open to hearing new American ideas to
break the deadlock.
    Percy, who conferred for nearly three hours with Brezhnev on
Wednesday and for three hours Thursday with Soviet Defense Minister
Dmitri Ustinov, said:
    ''There was no question but that they now have the message. I think
they now fully understand that the treaty is uncceptable as it now
stands. I do believe that they are now convinced after nine hours of
discussions at the highest levels that there must be a new treaty.''
    Percy, who said earlier his visit here was ''closely coordinated''
with the president-elect and his advisers, described his meeting with
Gromyko, like his earlier meetings here, as free give-and-take on the
issues.
    ''I think always Foreign Minister Gromyko is very direct, very
blunt. I felt his tone was a businesslike tone. He was down to earth.
He presented his points. But he also recognized reality.''
    Political observers in the United States believed the SALT II treaty
initialed by the two countries in Vienna, had little chance of
passage even before the Soviet military intervention in Afghanistan
last December. The Soviet troops were sent in to help the
Moscow-backed Kabul government in its continuing fight against Moslem
Afghan insurgents.
    After that, the Senate did not consider Salt II.
    Percy had said his talks today would include stern U.S. warnings
against any interruption in the flow of Persian Gulf oil. Details of
the talks were not immediately available.
    Percy also had said he planned to raise the more general problem of
the Iran-Iraq war during today's talks. There was no immediate
indication of whether those subjects were discussed.
    On Thursday, Percy told reporters: ''Any effort by anyone to
jeopardize the secure flow of oil from that region would cause us to
react decisively - and there should be no misunderstanding or
ambiguity about this.''
    Earlier, he met with Ustinov and with Brezhnev, who had not
conferred with a top U.S. leader since five months before the
Afghanistan crisis last December.
    Percy says: 5th graf
    
ap-ny-11-28 1045EST
**********

a210  1032  28 Nov 80
AM-People,500
Laserphoto NY23
People In The News
    MARSEILLE, France (AP) - The world's longest surviving heart
transplant patient, Emmanuel Vitria, on Friday celebrated the 12th
anniversary of his surgery with a quiet family party.
    Vitria's transplant Nov. 27, 1968 was the eighth done in France, and
was performed by Dr. Edmond Henry in Marseille. Vitria received the
heart of a 20-year-old soldier killed in a road accident.
    Vitria, now 60, leads an active life, swimming and cycling and
making public appeals for blood donors as president of the National
Blood Donors' Association.
    ---
    SUN CITY, Ariz. (AP) - Last year, 82-year-old George A. Thompson
spurred a drive to send Christmas cards to the American hostages in
Iran. Then he sent valentines to servicemen in the Indian Ocean.
    Now, with the support of the American Legion, he's leading a drive
to send 100,000 Christmas cards to U.S. military personnel stationed
in the Indian Ocean.
    Thompson asks that the cards be addressed: ''Holiday Greetings to a
Great Guy,'' Command Carrier Task Force 77, F.P.O. San Francisco,
Calif., 96601. Cards should be mailed no later than Dec. 15, he said.
    A World War I veteran, Thompson knows from experience what mail
means to a serviceman. He was mailman of a Florida convalescent camp
and recalls seeing ''tears on faces of big men who day after day
didn't get a letter.''
    ---
    TEL AVIV, Israel (AP) - Former Prime Minister Yitzhak Rabin sued the
French newsweekly L'Express for $357,140 Friday because of an article
that claimed he accepted money from a man alleged to have underworld
connections.
    L'Express wrote in last week's editions that a fine of $23,000
imposed on Rabin's wife for holding an illegal bank account was paid
by Israeli contractor and hotel magnate, Bezalel Mizrahi.
    Mizrahi's name became a household word in Israel during his
successful libel suit against a Tel Aviv newspaper that called him a
gangland godfather. The paper is appealing the verdict.
    Rabin was forced to resign as prime minister in 1977 over the bank
account, but now is challenging Shimon Peres for leadership of the
Labor party.
    Rabin filed an affidavit from Peres denying L'Express's claim that
Peres associates were behind publication of the alleged Rabin-Mizrahi
tie.
    ---
    AGANA, Guam (AP) - Kimberly Santos was crowned Miss World on Friday
before 6,000 cheering residents of this Pacific island.
    Miss Santos, 19, was first runner-up in the recent beauty contest,
and inherited the title when the winner, Gabriella Brum of West
Germany, resigned less than 24 hours after she was crowned.
    The new queen received her crown from the 1978 Miss World, Mary
Stavin of Sweden, on a stage at Ipao Beach Park, Guam's largest park.
She arrived at the park on a traditional island outrigger,
accompanied by a flotilla of small boats decorated with tropical
flowers and banners.
    Miss Santos compared her ascent to the throne to ''winning a
football game because the other team forfeits the game.
    ''It's still exciting though, '' she said. ''I think people will
forget how it happened.''
    
ap-ny-11-28 1332EST
**********

a215  1104  28 Nov 80
AM-Hostages, Bjt,610
Militant Denies Hostage Transfer Report
Laserphotos TEH1,2
    BEIRUT, Lebanon (AP) - One of the militants at the occupied U.S.
Embassy in Tehran denied reports Friday that the U.S. hostages had
been turned over to the Iranian government.
    In Washington, U.S. State Department officials gave a cautious
description of the latest negotiations on the captives' release and
said a delegation might return to Algiers soon for further talks
through Algerian intermediaries.
    ''We have not delivered the hostages to the government yet, and when
we do we will issue a statement announcing it,'' said one of the
captors who was reached by telephone from Beirut.
    Iran's official news agency Pars also said it could not confirm
reports by two American television networks that the captives had been
transferred to government custody. The militants have held 49
hostages while three others have been held at the Foreign Ministry.
    ''We have not had any report on the hostages transfer,'' said the
day shift deskman at Pars' Tehran offices, who was also reached by
telephone from Beirut. The staffer said the agency could not get in
touch with Iran's Prime Minister Mohammad Ali Rajai for a statem Hamadan Provin-
ce near the war
front with Iraq in western Iran.
    When it set the terms Nov. 2 for the release of the hostages, Iran's
Majlis, or Parliament, also decided the government should take
control of the Americans from the militants. The hostages are
reportedly held in hideouts around the country as well as at the U.S.
Embassy that militants seized 392 days ago, but there has been no
official word on their whereabouts.
    On Thursday, the second Thanksgiving the hostages have spent in
captivity, CBS television quoted ''usually reliable sources'' as
saying most of the hostages have been moved from the embassy to Evin
Prison in Tehran. NBC said the militants claim to no longer be
involved in the hostage matter.
    The prison's switchboard operator, who claimed to know everything
that happens there, said when reached by telephone that the hostages
were not at Evin.
    In Washington, U.S. State Department duty officer Sondra McCarty
said American officials had ''nothing to confirm that the (Iranian)
government has taken over responsibility for them.''
    State Department Spokesman John H. Trattner said such a move ''would
be helpful,'' but he emphasized that there is no sign the hostages
will be released in the near future.
    Trattner said he is neither optimistic nor pessimistic at this point
and told reporters, ''It's not advisable to project any kind of
feelings of up or down.''
    Three Algerian intermediaries met in Washington with Deputy
Secretary of State Warren Christopher and other top American officials
for four hours Thursday in a followup of 5 1/2 hours of talks Wednesday.
    Trattner said Christopher may go to Algiers soon with clarifications
sought by the Iranian Parliament on the initial U.S. response to the
demands.
    The conditions set by the Parliament for the release of the 52
Americans seized Nov. 4, 1979, after the embassy takeover by militants
are return of the wealth of the late shah, dismissmal of American
legal claims against Iran, a pledge of U.S. non-interference in
Iranian affairs and release of more than $8 billion in frozen Iranian
assets in the United States.
    Specifics of the U.S. response have not been released, but
administration officials have said it explained the legal difficulties
in dismissing legal claims and returning the shah's wealth.
    The administration has said several times it has no problem with the
guarantee of non-interference. The demand that Iranian assets be
freed is not believed to be in dispute. President Carter ordered the
assets seized after the Americans were taken captive.
    
ap-ny-11-28 1404EST
**********

a242  1446  28 Nov 80
AM-Jordan-Border,Bjt,810
    EDITOR'S NOTE: To check reports of troop buildups, an AP
corrrespondent traveled overland Friday from Amman to Irbid in
northwest Jordan, along the closest road to the border with Syria as
far as Ramthha and then south to Amman on the Damascus-Amman highway.
This is his report.
    ---
By NICOLAS B. TATRO
Associated Press Writer
    RAMTHA, Jordan (AP) - Jordan's King Hussein has deployed scores of
tanks and heavy weaponry near the border with Syria in response to a
buildup of Syrian troops and armor in recent days.
    Tension between the two Arab neighbors arose as a result of the
Iran-Iraq war and Syrian accusations that Jordan was aiding Islamic
fundamentalists who seek to overthrow established Arab governments.
    Jordan supports Arab Iraq in the war with non-Arab Iran. Syria
blames Iraq for starting the war, which it claims is diverting
attention from the Arab-Israeli conflict.
    ''There has been no shooting,'' said a police superintendent at this
border post about six miles north of the main line of Jordan's
armored force concentrated along the Damascus-Amman Highway.
    There have been unconfirmed reports of several incidents and of
Syrian aircraft crossing into Jordanian airspace.
    Sources have said Syria began a buildup Nov. 20 during a conference
of Arab foreign ministers prior to the Arab League summit meeting
here. The reports said the buildup was centered at Deraa, three miles
north of the Jordanian border, across from Ramtha.
    Despite the growing confrontation, the police superintendent said,
''We treat the Syrians better than anyone. They are preferred
visitors.''
    The Jordanian-Syrian border remained open and cars and trucks could
be seen crossing in both directions without delay. Police refused to
say if traffic was less than usual as a result of the tensions.
    About four miles south of Ramtha, the frontline of the Jordanian
armor was visible, but there was no evidence of troop deployments.
British-made Chieftan tanks, their guns pointed toward Syria, were
nestling on rocky, treeless hills behind freshly dug entrenchments.
    Artillery emplacements, scout cars and armored personnel carriers
were deployed in a v-shaped line on either side of a crossroad, some
dotting hill tops and others in the middle of farm fields.
    No Syrian forces could be seen from the border post but sources said
the first armored division with 400 tanks was stationed across a line
of border hills.
    King Hussein told a news conference at the end of the three-day Arab
summit Thursday that Jordan would do its ''utmost'' to repel the
Syrian forces should they cross the border.
    ''I can't speculate on what is likely to happen on our border with
Syria,'' the 46-year-old monarch said. ''They say we interfered in
their domestic affairs. That's not true.''
    Syria has a vastly larger military force than Jordan but President
Hafez Assad's troops are spread thin with peacekeeping contingents in
Lebanon, facing srael on the Golan Heights and along the border with
Iraq. Jordan's army, about 70,000 men backed by 600 tanks and 60
combat aircraft, is rated as one of the best-trained Arab armies.
Syria has a 250,000-man army with 3,000 tanks and 400 combat planes.
    ''If they venture as much as one inch into our land, they will be
unforgettably beaten,'' vowed one Jordanian official, who asked not to
be identified.
    Despite the strong words, most observers here see the buildup on
both sides of the border as saber rattling and say it is unlikely to
develop into a shooting war.
    Instead, the analysts said Syria appears to be trying to pressure
Jordan not to become further involved in Iraq's war against Iran.
    The analysts also said Syria, which recently signed a 20-year
friendship pact with the Soviet Union, seeks to demonstrate to other
Arab leaders that it is a power to be reckoned with.
    In Washington, State Department spokesman John trattner said the
Carter administration regards Jordan ''as a friend whose security is
important to us.'' Administration sources said U.S. diplomats have
been in touch with Jordan, Syria, Israel and other Mideast nations in
an effort to ease the tension.
    The Syrians led a boycott by five Arab states and the Palestine
Liberation Organization of this week's Arab summit after host state
Jordan and other moderates rejected Syria's request to postpone it.
Syria cited divisions in Arab ranks caused by the 2-month-old Persian
Gulf war.
    King Hussein has pledged all-out support for Iraqi President Saddam
Hussein, including the dispatch of troops if necessary.
    Syrian officials have not explained their border buildup, although
Foreign Minister Abdul Halim Khaddam told a pre-summit conference
Syria might send itstroops ''beyond its borders'' to punish any Arab
power that created divisions in the Arab world.
    Syria sent an armored column across the border near the northwestern
Jordanian city of Irbid in 1970 when PLO guerrillas were battling
Jordanian's predominantly Bedouin army.
    The forces were turned back with heavy losses and King Hussein told
reporters then, ''I hope we don't have to prove (our ability)
again.''
    
ap-ny-11-28 1746EST
**********

a247  1514  28 Nov 80
AM-Hostages, 1st Ld-Writethru, a215,670
Eds: Writes thru with Washington, London material. Changes
throughout.
Precede BEIRUT
By MARK S. SMITH
Associated Press Writer
    WASHINGTON (AP) - The State Deparment said Friday it had no new
information concerning the whereabouts of the American hostages in
Iran. But a spokesman said any transfer of the hostages from the
Islamic students to the Iranian government negotiating their release
would be a positive step.
    The declaration, by State Department spokesman John Trattner, was a
response to broadcast and published reports Thursday - the second
Thanksgiving the U.S. hostages have spent in captivity - that the
militants had turned the Americans over to government officials.
    Contacted by The Associated Press from Beirut by telephone, one of
the militants at the U.S.Embassy in Tehran denied the reports.
    ''We have not delivered the hostages to the government yet, and when
we do we will issue a statement announcing it,'' said the militant,
who refused to identify himself.
    Iran's official news agency Pars also said it could not confirm
reports by two American television networks that the captives had been
transferred to government custody. The militants have held 49
hostages while three others have been held at the Foreign Ministry.
    ''We have not had any report on the hostages transfer,'' said the
day shift deskman at Pars' Tehran offices, who was also reached by
telephone from Beirut. The staffer said the agency could not get in
touch with Iran's Prime Minister Mohammad Ali Rajai for a statement on
the hostages because Rajai was in the Hamadan Province near the war
front with Iraq in western Iran.
    More confusion was added to the situation when an Iranian official
in London for talks with British leaders said that the hostages were
''in the process'' of being handed over to Iran's government.
    But the official, Iran's charge d'affaires in Bonn, Mehdi Nawab,
also told reporters through interpreters that ''preparations'' were
underway for the transfer and that ''suitable accomodation'' w s being
sought for the hostages. He said he met with British officials to
explain his country's stance in the Iran-Iraq war.
    The question of the hostages' status arose as U.S. diplomats
prepared a response to the latest communication from Iran concerning
conditions for the captives' release.
    Three Algerian intermediaries, carrying requests from Tehran for
clarification of the U.S. position, concluded two days of talks with
administration officials here Thursday.
    ''We are now working on our next steps in the process,'' Trattner
said Friday, adding it would probably take ''several days'' for the
United States to formulate a response to the Iranian questions.
    Iran's Majlis, or Parliament, stated its demands for release of the
hostages Nov. 2. They are: return of the wealth of the late Shah
Mohammad Reza Pahlavi, dismissmal of U.S. legal claims against Iran, a
pledge of non-interference in Iranian affairs and release of more
than $8 billion in frozen Iranian assets in this country.
    Administration officials have told Iran that, under U.S. law, they
cannot fully comply with the first two demands, and Iran's request for
clarification presumably deals with those two areas.
    It is not yet known how the latest American response will be
transmitted to Iran, Trattner said.
    Asked about reports that control over the American captives had
passed from the militants to the government in Tehran, Trattner said,
''We have made inquiries through diplomatic channels about this
story. We have no information on the whereabouts of the hostages, or
that the student militants have relinquished control of them.''
    CBS News, quoting ''usually reliable sources,'' reported Thursday
that most of the hostages have been moved from the U.S. Embassy to
Tehran's Evin Prison, which once held some of the late Shah's foes.
But the switchboard operator at the prison denied any knowledge of the
hostages' whereabouts.
    Since last spring's aborted U.S. military mission to free the
hostages, their militant captors have repeatedly announced their
transfer from city to city within Iran. The State Department has been
unable to confirm any of the reported movements.
    
ap-ny-11-28 1813EST
**********

a264  1655  28 Nov 80
AM-Hostages, 2nd Ld, a247,50
Eds: CORRECTs spelling of Department.
By MARK S. SMITH
Associated Press Writer
    WASHINGTON (AP) - The State Department said Friday it had no new
information concerning the whereabouts of the American hostages in
Iran. But a spokesman said any transfer of the hostages from the
Islamic students to the Iranian government negotiating their release
would be a positive step.
    The declaration, 2nd graf
    
ap-ny-11-28 1954EST
**********

n071  1715  28 Nov 80
 
BC-CROPS ADV30 2takes
(FOR RELEASE: SUN. NOV. 30)
(Review of the Week)
By SETH S. KING
c. 1980 N.Y. Times News Service
    WASHINGTON - Because 1980 has been a bad year in many large grain
producing countries, the world's supply of cereals is now the
tightest since 1974. It is a situation that both increases
President-elect Ronald Reagan's opportunities for using American food
as a diplomatic tool and heightens the risk of doing so.
    The Department of Agriculture forecasts that nearly 1.45 billion
metric tons of grain will be harvested worldwide this year. Although
this is roughly the size of last year's harvest, the world's needs
are much greater, especially for feed grains that sustain meat
supplies.
     The United States, Canada and France, three of only five countries
that export wheat in any significant quantities, have produced
unusually large crops. But droughts have sharply reduced yields in
Australia and Argentina, the other two large-scale wheat exporters.
     In the United States, which exports nearly three times as much feed
grain as all other exporting countries combined, late summer dryness
cut the 1980 corn crop by 17 percent. And this country's crop of
soybeans, which yield both food oil and high protein animal feed, was
down 22 percent.
     For the second consecutive year, heavy rains have impeded grain
harvests in the Soviet Union and Eastern Europe. The Russians, who in
good years often help offset food deficiencies among their closest
neighbors, are now expected to harvest less than 182 million tons.
This would be about as bad as last year's crop, the worst since the
disastrous weather year of 1974.
     In Poland, where food shortages have contributed to the current
unrest among workers, there is no longer enough pork and poultry to
export and earn hard currency needed to help pay off the country's
debts. The United States Department of Agriculture reported earlier
this month that Poland would need to import an additional 8 million
tons of grain to feed its own people and maintain its livestock
breeding herds.
     And the United Nations Food and Agriculture Organization has warned
that before the grain harvests begin next summer, global food stocks
would be down to 14 percent of world consumption. ''This would be
drastically below the 17 to 18 percent that we estimate to be the
minimum required for world food security,'' the agency declared.
     The tightness of world grain stocks has already touched off a
scramble by importing countries for the available grain. The
Agriculture Department noted last week that two-thirds of the wheat
the United States expects to export in the 1980-81 crop year had
already been ordered or shipped.
     Despite its reduced corn and soybean crops, the United States now
has enough grain in storage to meet domestic needs and continue to
export record amounts. But this comparative plenty poses several
questions.
    For one, will Reagan continue or increase credits and special aid
available under Public Law 480 to developing countries that
desperately need American grain, flour and cooking oil? In the coming
year, about $1 billion has been allocated for Public Law 480 credits
and assistance. Egypt, this country's best friend in the Arab world,
is due to receive nearly a third of this aid. Other principal
beneficiaries are Indonesia, Pakistan, and South Korea, as well as
the Sudan and Bangladesh. Some of these countries could probably buy
some other food elsewhere. Some could not. But these allocations are
on a dollar basis. With grain prices rising, the recipients cannot
buy as much.
     Last year Iran had to import nearly 2 million tons of wheat and
rice, with most of the wheat coming from Australia. If the American
hostages are released and Iran has no other hard currency with which
to buy Australia's scarce exportable wheat, would the United States
be willing to again sell grain to Iran?
     Poland has asked Washington for credit with which to buy $900
million worth of American grain. This was a sharp increase over the
$670 million President Carter has said would be available to Warsaw.
Would Reagan agree to provide all these credits to a Communist
country already heavily in debt to the West? Or would he risk denying
these funds for food and increase worker unrest that might result in
a Soviet crackdown?
(MORE)
    
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a655  1808  28 Nov 80
BC-Weekly Wall Street, Adv 29-30,620
$adv29
For Weekend Editions Nov. 29-30
Oil Issues Continue Strong
By CHET CURRIER
AP Business Writer
    NEW YORK (AP) - Among all the many stock groups that have soared in
Wall Street's 1980 bull market, few can match the performance of the
oil issues.
    The gains have been dramatic even for the breed of conservative
investor who insists on sticking only to old-line blue chip stocks.
    Consider Texaco, one of the industry giants, whose shares barely
budged out of the $20s for most of the past decade. From 29 1/8 early
this spring, Texaco climbed to record levels above 53 by late in the
past week.
    Over the same period Exxon has risen from 54 1/8 to the upper 80s, and
Standard Oil of California from 61 1/4 to around 115.
    All three of those issues are components of the Dow Jones industrial
average, and they have played no small part in the average's renewed
bid this month to crack the mystical 1,000 level.
    Just how great their role can be was vividly illustrated on
Wednesday, when the Dow posted a 7-point gain. That seemingly robust
showing, in fact, was due entirely to the action of a single stock -
Socal, which jumped 11 points. Had Socal been excluded from the
calculations, the average would have gone into the records for that
day with a decline of almost a point.
    For the four-day trading week, shortened by the Thanksgiving holiday
on Thursday, the average rose 3.41 to 993.34.
    The New York Stock Exchange composite index climbed .85 to a record
81.02, and the American Stock Exchange market value index picked up
12.31 to 370.75, also a new high.
    Big Board volume averaged 49.13 million shares a day, against the
record pace of 61.18 million set the week before.
    For more venturesome investors willing to put their money on
smaller, lesser-known oil stocks, the rewards in some cases have been
truly spectacular.
    One case in point is Tom Brown Inc., traded in the over-the-counter
market. The stock of the Midland, Tex., oil and gas concern was
quoted, adjusted for subsequent splits, as low as 4 1/4 bid in 1979 and
10 1/4 early this year. This past week it was pushing 50.
    The basic forces behind the gains being shown by these stocks are as
familiar as the energy crisis itself - rising prices for the basic
products, plus heavy demand for development of new oil, gas, and other
fuels.
    Ronald Reagan's victory in the Nov. 4 presidential election has
given them an extra push. Last Tuesday, the oil group rallied when
Reagan indicated he favored removing all price controls on oil and
gas, and said he would take ''whatever action is necessary to increase
domestic supplies.''
    On top of that, there is the war between Iran and Iraq. Even if that
conflict were to end shortly, analysts Barry Sahgal and Osman Eralp
at Bache Halsey Stuart Shields Inc. observed recently, ''there can be
no guarantee of a lasting harmony in the region.''
    As a result, ''politically safe'' oil and gas reserves in areas
other than the Middle East have been given increasing value by
investors.
    With all that they have had going for them, the progress of oil
issues in recent months hasn't been uniformly smooth.
    Many Canadian oils took a nasty spill a few weeks back when that
country's government moved to increase its interest in the industry.
This past Monday, stocks of many companies with oil operations in the
North Sea likewise ran into heavy selling pressure when the British
government proposed a new tax on that oil.
    Even at their present lofty levels, it's uncommon these days to see
a broker's recommended list without a goodly number of oil stocks on
it. But developments like those in Canada and Britain lately have
shown once more that owning oil stocks is still a game of big
political, as well as business, risks.
End Adv Weekend Editions, Nov. 29-30
    
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n076  1812  28 Nov 80
 
BC-MILITARY-ANALYSIS
By DREW MIDDLETON
c. 1980 N.Y. Times News Service
    NEW YORK - As the war between Iraq and Iran lapses into a struggle
broken by spasms of activity on the ground and sporadic air raids,
analysts in Washington and other Western capitals are attempting to
chart the conflict's future.
    Agreement is general that although the level of fighting may be
slowly reduced in the next month, no early end to the war can be
expected as long as the Iraqis, who hold the edge, follow their
present tactics.
    With these tactics of prudence, there are no sudden thrusts across
country or pincer movements around enemy forces. The Iraqi high
command is content to hammer at Abadan and Ahwaz with shellfire, to
harass Dezful with missiles and to send two or three MiGs on raids
against targets outside the battle zone that are known to be short on
antiaircraft defenses.
    These ''safe and sure'' tactics irritate many Iraqi troop
commanders, according to senior analysts. These officers, reporting
the dissolution of Iranian forces, believe that a more ambitious
strategy could end the war soon.
    Their arguments have not moved the high command for two related
reasons. The first is that such tactics would increase the loss of
life among Iraqi soldiers, on whose loyalty the regime rests. The
second is that a high percentage of the Iraqi rank and file are
Shiites, the sect of Islam that dominates Iran.
    Under present battle conditions the loyalty of the Shiite soldiers
is not in question, although there is evidence that the command has
weeded out some from front-line units. But the government would
expect a serious situation to arise, a NATO intelligence officer
said, if many Shiites were killed fighting their religious brothers
from Iran.
    The effect, the source said, would be bad both for the army and for
public opinion represented by the families of the fallen soldiers.
    Earlier in the war, which began on Sept. 22, President Saddam
Hussein of Iraq announced that the economic strangulation of Iran was
not his object. Instead, he said, he wanted a negotiated peace that
would deal primarily with Iraqi rights in the Shatt al-Arab, the
waterway that separates the two countries at the head of the Persian
Gulf.
    At this stage of the war, analysts said, the Iraqis are much closer
to the economic strangulation of Iran than they are to negotiation.
The divided government in Tehran, in which the clerical party appears
to have the upper hand, has refused all proposals for negotiation
even though the country's economy is deteriorating rapidly.
    The one source of crude oil left to Iran, either because of an Iraqi
oversight or because the generals do not think it worth the effort,
is the pipeline that runs east and north from Ahwaz to the refineries
in Isfahan and Tehran. According to British sources, the production
at those refineries keeps Iran's war effort going.
    That effort, such as it is, suffers increasingly from divisions in
the government and antagonism between regular troops and
revolutionary guards, who, though ardent, lack training.
    There are reliable reports that in many cases the guards have taken
over tanks, missile batteries and heavy artillery from regular
formations but have been unable to use them because of their lack of
training. This apparently was especially true in Abadan, according to
a United States source. The revolutionary guard units are still
holding out in the ruins of the refinery, but they are armed with no
more than automatic rifles and machine guns and their numbers are
being steadily reduced by Iraqi shelling.
    What remains of the regular army in Khuzistan is concentrated around
Dezful and strung out in posts along the foothills of the Zagros
Mountains guarding the road to Teheran. Except for some long-range
shelling and a few air attacks, these forcees have been left alone by
the Iraqis, who are concentrating on oil installations to the south.
    American analysts who know Iran and its people are puzzled that
Teheran has not taken the only course open now that conventional
forces have failed to drive back the Iraqis. That course they see as
guerrilla war.
    Possibly because of the American experience in Vietnam, many
veterans of that conflict appear to exaggerate the effectiveness of
guerrilla operations in much different situations.
    NATO officers who know thecupation of Khuzistan, analysts are increasingly
worried over the prospect that it may widen the war deliberately.
    British sources are convinced that the two attacks by Iranian Air
Force jets on a Kuwaiti frontier post were deliberate. The post, they
reported, is in the open desert miles from any military objective.
The reasons for the attack, the sources suggested, was to warn Kuwait
not to allow its ports to be used for the transshipment of military
supplies for Iraq.
    
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n087  1954  28 Nov 80
 
BC-ARABS
(Analysis)
By PRANAY B. GUPTE
c.1980 N.Y. Times News Service
    AMMAN, Jordan - The Arab League's conference here this week
established conclusively that the Arab community, never renowned for
its unity, was now divided into two major camps. The smaller camp,
led by Syria and joined by Libya, Algeria, Southern Yemen, Lebanon
and the Palestine Liberation Organization, boycotted the meeting. The
other camp, including Saudi Arabia and Jordan and supported by
once-radical Iraq, was left with the unenviable task of shaping a
renewed Arab position on Israel and the Palestinian cause.
    The participants in the conference chose the safest way out: They
reaffirmed resolutions concerning Israel and the Palestinians that
the Arabs approved in Baghdad in 1978 and in Tunis last year. Israel,
the conferees said, must withdraw from all Arab territories it has
occupied since the 1967 war and there must be full recognition by the
international community of the Palestinian right to
self-determination and a homeland. The participants reiterated
rejection of the Camp David peace accords, and they stressed that
Resolution 242 of the United Nations Security Council, approved in
1967, did not ''conform with Arab rights and did not constitute a
sound basis for the settlement of the Middle East crisis,''
particularly in regard to the Palestinians.
    That the conference was held at all was testimony to the
determination of King Hussein of Jordan, the host, who reportedly
spent more than $25 million on it, and to his political allies, the
Saudis and the Iraqis. The 46-year-old king emerged from the
conference with enhanced status among the Arab moderates and as their
candidate for exploring with Western leaders new ways to break the
impasse in the Middle East peace process.
    ''Moderates such as the Kuwaitis and the Saudis believe there has
been no real dialogue involving them about peace,'' a Western
diplomat said Friday. ''What they want above all is the opportunity
to have some input into the deliberations of a new American
administration. What they want is a program for peace they can
associate with and support, especially a program that satisfies the
requirements of the Palestinians. And since the United States won't
talk with the PLO, who better an emissary to talk with Reagan than
King Hussein?''
    Analysts here believe that despite the conference's public support
for the PLO as the legitimate representative of the Palestinian
people, the organization was clearly warned that its future
legitimacy in the eyes of the conferees depended on whether it acted
independently of Syrian pressures. This warning came again through
Hussein, who noted that the PLO was being subjected to enormous
pressures by Syria. Syria protects the organization's forces in
Lebanon against Christian militias and also has given the
organization bases there and in Syria itself. Syrian pressure not
only forced the PLO to stay away from the conference, but it has also
apparently delayed a visit to Jordan by the organization's chairman,
Yasir Arafat.
    If there was a departure from past practices, it was that the Arabs
at long last reached agreement here on an overall economic
development plan. A $5 billion fund was set up to provide poorer Arab
countries such as Jordan and Tunisia with long-term, low-interest
loans for capital projects. But the $5 billion fell far short of the
$15 billion or $30 billion figures that were talked about before the
meeting.
    There is general agreement among Western diplomats and Arab analysts
here that Syria dominated the conference despite its absence. The
Syrian strategy at first was to push for a postponement of the
conference on the ground that Arab states would not be able to
achieve major objectives because of deteriorating relations among
them. Specifically, Syria had feared that its rival, Iraq - which is
fighting a non-Arab country, Iran, which Syria supports - would try
to isolate Syria politically at the meeting and perhaps force the
gathering to issue a public condemnation of the government of
President Hafez al-Assad.
    That condemnation came from the mouth of Hussein, who accused Syria
of ''stabbing Iraq in the back,'' but the communique used more
moderate language and called for a cease-fire in the 10-week-old
Iran-Iraq war while endorsing Iraq's claims over the disputed Shatt
al-Arab waterway at the head of the Persian Gulf.
    Once Syria declared it was not going to attend the three-day
meeting, it continued to influence the conferees' deliberations
through its military provocations on the Jordanian border. Syria has
now massed more than 30,000 troops and 500 tanks less than two miles
from the border, in what Hussein said was a ''clear threat'' to his
country.
    Diplomats here say they are puzzled by the Syrian maneuver. ''What
concerns us is the illogic of it all,'' a Western diplomat said.
''And that raises questions of unpredictability. The Syrians made a
major miscalculation in pushing for a postponement of the summit
beyond the point when it was obvious that Jordan and the moderates
were determined it be held. Is Syria making another major
miscalculation about these military provocations?''
    
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n093  2055  28 Nov 80
 
BC-OPEC-ASSESS 2takes Adv30
(For release Sun., Nov. 30)
By YOUSSEF M. IBRAHIM
c. 1980 N.Y. Times News Service
    BAGHDAD - In mid-September 1960, thanks largely to the efforts of a
dreamer-politician from Venezuela, the Organization of Petroleum
Exporting Countries came to being at a meeting in this capital city
on the banks of the Tigris.
    This month in Baghdad, there was to have been a 20th-anniversary
celebration of that occasion, the starting of a business venture that
brought unimaginable wealth and political power to its members. But
the party has been postponed indefinitely. For the first time in
those 20 years, two OPEC members are at war. Iraq and Iran have
assailed each other's oil installations and Iraq is holding the Oil
minister of Iran captive.
    Just before the war's outbreak, the 13 members convened in the
splendor of OPECs Hofburg palace headquarters in Vienna, and things
went badly. The group couldn't agree on a new pricing policy or on a
way to channel aid to the third world. The meeting degenerated into
sometimes comic name-calling and broke up after three days.
    OPEC, however, is still intact and is likely to remain so. It is
bound by a glue that seems impermeable to the severest political
disputes. OPEC, as one of its superstars, Saudi Arabian Oil Minister
Ahmed Zaki Yamani, has described it, is ''a bazaar.'' And whatever
the squabbles within, the marketplace remains.
    OPEC is so flexible that it can accommodate the diversity of opinion
among its members. ''When they can't reach a decision,'' said Ian
Seymour, editor of the respected oil journal, Middle East Economic
Survey, ''they just don't reach one.''
    Obviously the Gulf war doesn't help. There will be a hiatus, but the
organization is too useful to its members to be allowed to die. It
costs little and has provided by far one of the the greatest returns
on investment imaginable.
    The oil-rich nations found themselves the proprietors of incredible
wealth as the world shifted from a coal-based to an oil-based economy
after World War II. Through the organization, they reclaimed their
resources from Western oil companies and imposed their own pricing
policy. In so doing, they single-handedly wrought shifts in the world
economic order on a scale that can only be compared to that of the
two world wars.
    The group's three-year attempt to forge a long-term pricing strategy
obviously brought conflict. Saudi Arabia's view of how the price of
oil should be calculated differs from that of Iran, or Algeria. A
similar attempt to channel aid to the third world also ran into
difficulties. The fact is that most OPEC countries prefer to give
their aid directly. But these failures can hardly break OPEC.
    While the group appears to the outside world as a monolith, it has
always been highly fractured in groups and sub-groups. Its attempts
for a firmly unified price broke up at a raucous meeting in Venezuela
just a year ago. And at the moment, several mini-OPECs are, in fact,
in operation. The Gulf producers, led by Saudi Arabia and Kuwait, and
including The United Arab Emirates and Qatar, have decided as a group
to increase production. The African producers, namely Libya, Nigeria,
Algeria and Gabon met a few weeks ago to consider raising the price
of their oil.
    OPEC's own deliberations are a superb mixture of wiliness, democracy
and compromise. Ultimately they are never allowed to trespass on the
individual self-interests of each of the OPEC members. In a sense, it
survives because its own members do not take it too seriously. Within
its confines OPEC today groups Saudi Arabia, the world's largest oil
exporter whose royal family is one of the most conservative
governments on earth, indefinitely wedded to the Western alliance of
nations. Simultaneously, it is the home of Libya's ruler, Col.
Muammar al-Khadafy, one of the most dedicated revolutionaries in the
third world whose hostility to the West is nearly absolute.
    It brings together Algeria and Iraq, both no-nonsense socialist
states, with Kuwait, Qatar and the United Arab Emirates, all heavens
of free enterprise.
    It joins Arabs and Persians, whose antipathy toward one another has
deep historical roots. And it assembles such culturally diverse
nations as Africa's Nigeria and Gabon, with Asian Indonesia and Latin
America's Venezuela and Equador.
     Some experts feel that the exporters got what they wanted out of
OPEC over the past 20 years and are only keeping the organization as
some sort of public relations gimmick. ''OPEC is a nice club, I don't
think anybody would want to spoil that,'' said the editor of a highly
respected oil industry journal. ''In the 1960s, it prevented prices
from collapsing when there was too much oil. Now that oil is in
shortage, market pressure will continue to push the price up and OPEC
can continue to be the circus it has become.''
    Others say OPEC succeeds because its members look upon it only as a
safety net to prevent a deterioration of oil prices. ''For 20 years
OPEC has been a successful association of oil producers who went
after the best price for their commodity,'' said Robert Mabro, Oxford
University professor and oil economist. ''They only run into
difficulties when they try to be something more than that, but when
it comes to pricing oil, there are no inherent contradictions between
them.''
    (MORE)
    
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a006  2134  28 Nov 80
PM-US-Hostages, Bjt,430
U.S. Officials Mapping Next Move
By MARK S. SMITH
Associated Press Writer
    WASHINGTON (AP) - Amid confusion over who now controls the American
hostages, U.S. officials are mapping their next move as diplomatic
parrying with Iran continues over the demands for the captives''
release.
    Iran's most recent step was to seek, via three Algerian
intermediaries, a clarification of the first American response to the
four conditions set by the Iranian Parliament on Nov. 2.
    The Algerians spent Wednesday and Thursday at the State Department,
describing for U.S. officials the type of clarifications Iran wants.
On Friday, two of the three returned to Algiers and the third,
Algeria's ambassador to Washington, remained.
    ''The next step is for us to work on the requested clarifications,''
State Department spokesman John Trattner said Friday. It would be
''several days'' before the United States can formulate a response, he
added.
    The demands include a pledge by the United States of
non-intervention in Iran's affairs, release of more than $8 billion in
Iranian assets frozen by President Carter, return of the wealth of
the late Shah Mohammad Reza Pahlavi and dismissal of all legal claims
against Iran.
    Administration officials have said it may not be possible under U.S.
law to meet the last two demands, and that assertion may be the basis
of Iran's request for elaboration.
    Meanwhile, an Iranian official visiting London said the hostages -
49 of whom have been held by revolutionary followers of Ayatollah
Ruhollah Khomeini since Nov. 4, 1979 - were ''in the process'' of
being handed over to Iran's government. The other three have been held
at the Iranian Foreign Ministry since the U.S. Embassy takeover.
    The official, Mehdi Nawab, charge d'affaires for Iran's embassy in
Bonn, also said ''suitable accommodation'' was being sought for the
hostages.
    But one of the militants at the embassy in Tehran, reached by
telephone from Beirut, told The Associated Press no hostages had yet
been transferred. And in Washington, State Department officials said
they had no knowledge of the captives' status.
    ''We have made inquiries through diplomatic channels,'' said
Trattner, but ''we have no information on the whereabouts of the
hostages, or that the student militants have relinquished control of
them.''
    Any transfer of control would be a positive step, Trattner said. But
he added, ''We're not anxious about the control.''
    Since the U.S. military mission to free the hostages ended in
failure last spring, the militants repeatedly have claimed to have
moved the captives within Iran. But U.S. officials have been unable
either to confirm or deny any of the reported movements.
    
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n501  2149  28 Nov 80
 
BC-ARAB-11-29
    By Andrew Borowiec
    (c) 1980 Chicago Sun-Times (Field News Service)
    NICOSIA-The tensions of the Arab world are becoming increasingly
acute, strengthening Israel's hand in dealing with the forthcoming
Republican administration in Washington.
    This conclusion has been drawn, with considerable gloom, by Arab
diplomats in the face of the abortive summit in the Jordanian capital
of Amman. The summit of the 21-member Arab League was boycotted by
five Arab states and the Palestine Liberation Organization (PLO)
before ending in dissension.
    The decisions reached in Amman are not likely to be binding. The
initial aim was to draw a master plan for the recognition of the PLO
by Western democracies as ''the sole representative of the
Palestinian people.'' By its absence from Amman, the PLO indicated it
was not interested in this strategy.
    Consequently, Arab diplomats say, Israel is likely to be the winner
of the current Middle East diplomatic ''round.'' As it is, the Arabs
feel that President-elect Reagan has shown strong pro-Israel
feelings. The polarization of the Arab world, fueled by the Persian
Gulf war between Iraq and Iran, can only strengthen Israel's
arguments about the instability and unreliability of Arab foreign
policy.
    ''Let's face it, we are leaderless,'' said one Arab envoy in this
Middle East listening post. ''Since (Gamal Abdel) Nasser died 10
years ago, we've had no one to electrify us.''
    The lame summit, with 40 empty chairs in Amman's modernistic
Cultural Center, was accompanied by a considerable buildup of tension
between Jordan and neighboring Syria. Syrian sources said an army
division - about 15,000 men - backed by 200 tanks was being deployed
in strategic points of the Syrian-jordanian border. Jordanian sources
confirmed that Jordan's armed forces were ''watching the Syrian
border carefully.''
    In 1970, when Jordan's King Hussein was fighting the ''Palestinian
state'' within his kingdom, Syria organized an invasion of Jordan by
Palestinian units under its command. An armor battle took place in
the buff-colored desert between Ramtha and Irbid and the invaders
eventually withdrew, deprived of air support. Six weeks later, the
Syrian air force commander, Gen. Hafez Assad, took power in a
bloodless coup. He is still at Syria's helm but his rule is
increasingly marred by insecurity, tension and terrorism.
    Earlier this year, Syria accused Jordan of aiding the underground
Moslem Brotherood, which is fighting a hit-and-run war against
Assad's regime in the name of Islamic fundamentalism. Jordan denied
the charge. Nonetheless Syria has been threatening to close the
border between the two countries.
    The Amman summit merely exacerbated ancient rivalries, feuds and
prejudices which seem to be the perennial plague of the Arab world.
Syria led the boycott, which was followed by Libya, Algeria, South
Yemen and the PLO. Lebanon, to a great extent controlled by Syrian
troops and torn by an internecine strife, joined.
    Syria and Libya decided to merge into one ''Arab country'' last
September. They are among the few Arab states supporting non-Arab
Iran in the Gulf conflict.
    The Syrian argument is that by attacking Iran, Iraq's President
Saddam Hussein ''turned Arab attention away from the real issue, that
is the confrontation with Israel.''
    In this respect the Syrians reflected the growing disenchantment of
the Palestinians, who have lost the center of Arab and international
attention since the outbreak of the Gulf war in September.
    However, by joining the boycott of the summit, the Palestinians are
likely to be the losers. They can expect little support from such
conservative and rich Arab states as Saudi Arabia and Kuwait which
went ahead with the meeting.
    Almost totally isolated on the Arab scene merely a few months ago,
Syria was considerably bolstered by merger plans with oil-rich Libya
and by its October ''friendship and cooperation'' treaty with the
Soviet Union.
    The merger with Libya appears to be stalled. But Syrian leaders feel
that some of Libya's annual $15 billion of oil revenue will sooner or
later find its way to Damascus. And the treaty with Russia has
considerably bolstered the Syrian armed forces, including
sophisticated Soviet tanks and aircraft.
    Little is known about Syria's success in fighting internal
opposition. For the past six months the Syrians have been reluctant
to issue visas to Western newsmen. Those admitted were generally
restricted to Damascus, the capital.
    President Assad appears to blame his internal difficulties on the
United States and, more recently, on Jordan, ''that den of criminal
gangs.''
    In the Gulf war, Jordan and Saudi Arabia have shown total commitment
to Iraq, including the use of Jordanian airfields by Iraqi planes.
    As the Gulf war drags on, the tensions between conservative and
radical Arabs appear to be growing. It is not unlikely that the bleak
desert border between Jordan and Syria might become another Middle
East flashpoint.
    ENDIT BOROWIEC
    
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n502  2202  28 Nov 80
 
BC-FRONT-11-29
    By Jay Bushinsky
    (c) Chicago Sun-Times (Field News Service)
    TEL AVIV-A potential second front looms in the Persian Gulf war as
Syrian forces continue to deploy massively along their southern
border with Jordan and Jordanian armor and artillery take
precautionary measures southeast of the Golan Heights.
    Jordan's King Hussein, host to the 11th annual Arab League summit
conference which ended in dissension Friday, has accused Syria of
stirring Middle East unrest by deploying 20,000 troops on the
northern border of Jordan. Hussein condemned Arab states supporting
Iran in the war with Iraq and has vowed that Jordan will defend
itself to the ''utmost'' if attacked.
    Israel's military command was reluctant Friday to elaborate on its
presumably detailed observations of the massing of troops nor would
it confirm or deny relay of data to the U.S. Embassy here. But
Israeli emplacements undoubtedly are close enough to gather data on
the Arab troop movements.
    The immediate cause of the Syrian-Jordanian confrontation was
Amman's insistence on hosting the Arab summit conference despite
Damascus' urgent pleas for a postponement due to the Iraq-Iran war.
    However, Israeli analysts note that the Syrians, who side with Iran
against Iraq, could act against the supply lines to Baghdad running
through Jordan - especially the desert highway from Aqaba to Amman
and eastward to the Iraqi border.
    They also contend that an outbreak of hostilities between pro-Iran
Syrians and pro-Iraq Jordanians would serve as a major diversion
preventing King Hussein from providing military support to Iraq for
the duration.
    Israel's news media have been carrying the same statistics as their
Western counterparts: 400 Syrian tanks and 20,000 troops now
threatening to attack Jordan. These forces were described as being
much larger than the minimum required for mere ''psychological
warfare.''
    Nor was it assumed here that the Syrians were simply using their
Soviet-supplied military might to influence the decision-making
process of the ongoing Arab summit talks.
    This was reflected in reports in the Israeli press that Jordanian
soldiers were seen digging trenches and earthmoving equipment and
were observed preparing tank positions in a bid to hold off Syria's
first armored division just across the border.
    The situation inspired banner headlines in both of Israel's
afternoon tabloids, the daily Maariv leading with ''Leaves and
Furloughs Canceled by the Jordanian Army'' and the daily Yediot
Aharonot saying ''The Jordanian Army Is on the Alert Along the Syrian
Border-Contacts Between Israel and the U.S. on the Situation.''
    ''Israel continues to follow developments closely along the
Syrian-Jordanian border,'' Yediot Aharonot said, noting that ''for
the past two days information has been exchanged about the current
situation between Jerusalem and Washington.''
    In 1970, Syrian forces spearheaded by elements of the Palestine
Liberation Army (PLA) invaded Jordan during a showdown there between
King Hussein's regime and the Palestine Liberation Organization (PLO).
    The subsequent Syrian-PLA withdrawal was attributed to
counter-measures taken by Israeli forces in conjunction with the
Pentagon and State Department at the time. Israeli armor was moved
eastward toward the Jordan River, but active intervention proved
unnecessary.
    Further indication of the current seriousness of conditions in the
area were seen in Jordan's limitations of civil aircraft at a
25,000-foot ceiling. This was believed here to be dictated by fears
that Syrian air force jets might intercept planes flying at higher
altitudes.
    Palestinian opinion in the occupied West Bank was divided over the
crisis spurred by the Arab summit.
    The moderate wing of Arab thinking, expressed through the daily Al
Quds, criticized Syria and the Palestine Liberation Organization for
boycotting the Arab summit, especially since the conclave's theme was
to consider ways to act against Israel.
    ''The meeting could be an opportunity to end inter-Arab differences
and mobilize Arab energy,'' Al Quds said. ''We thought the
Palestinian suffering would urge the Arabs to forget their marginal
struggles.''
    On the other hand, the pro-PLO daily Al Fajr justified the boycott,
saying, ''The PLO could not attend a summit that excluded the
Palestinian option while running after the socialist internationals
formula, known as the Jordanian option.''
    This was an allusion to an idea reportedly favored by
President-elect Reagan as well as by the Israeli Labor Party under
which the West Bank and Gaza Strip Palestinians would be put under
some form of Jordanian hegemony rather than given full
self-determination through Palestinian statehood.
    Similarly, the militant daily A-Shaab argued that the Amman summit
conferees ''should not claim that they are interested in the
Palestinian case.'' If they were, it went on, ''they would accept the
PLO demand and delay the summit.
    Well-informed West Bank Arab quarters indicated that the PLO had no
choice but to join Syria in boycotting the Amman summit. This was due
to the fact that the main body of PLO cadres is based in Lebanon, a
country under Syrian military domination.
    This comment was made in reference to arguments that the PLO might
have adopted a neutral stance, especially since the avowed purpose of
the Amman summit was to weigh the Palestinian issue.
    At the same time, Arab analysts noted that King Hussein's
unequivocal backing of Iraq in the Persian Gulf war made it
impossible for pro-Iran governments, such as Syria, Libya and South
Yemen, to go to Amman. To do so, the said, would be tantamount to
endorsing Jordan's stand.
    In fact, King Hussein has allowed the use of his sole seaport,
Aqaba, as the main intake point for Iraq-bound cargoes to reach
unprecedented proportions. The latest count of vessels waiting to
offload at Aqaba was 70 - nearly twice the buildup noted a month ago
and seven times the normal maritime use.
    ENDIT BUSHINSKY
    
ny-1129 0105est
**********

a032  0104  29 Nov 80
PM-Jordan-Syria,250
Scores Of Tanks, Heavy Weapons Deployed
    RAMTHA, Jordan (AP) - Jordan has deployed scores of tanks and heavy
weapons near the border with Syria because of the 400 tanks and
20,000 troops Syria has massed at the frontier.
    Associated Press correspondent Nicolas B. Tatro saw the front line
of the Jordanian armor about four miles south of Ramtha Friday, but
there was no evidence of Jordanian troops.
    He said Jordanian tanks, their guns pointed toward Syria, sat on
rocky, treeless hills behind freshly dug earthen entrenchments.
    Artillery emplacements, scout cars and armored personnel carriers
were deployed in a V-shaped line on either side of a crossroad, some
dotting hilltops and other in the middle of farm fields.
    Tatro could not see the Syrian forces from the border post.
    Informed sources said they were deployed Nov. 20 during a conference
of Arab foreign ministers prior to the Arab League summit meeting in
Amman, the Jordanian capital.
    Syria boycotted the summit because it feared Jordan's King Hussein
would turn it into a platform for supporting Iraq, Syria's rival and
Jordan's ally, in the war with Iran.
    Observers say the Syrian buildup appears aimed at trying to pressure
Jordan, which is ferrying supplies to the Iraqis, not to become
further involved with the Iraqi regime.
    They also say Syria, which recently signed a 20-year friendship pact
with the Soviet Union, wants to demonstrate to other Arab leaders
that it is the power to be reckoned with in the Middle East.
    
ap-ny-11-29 0404EST
**********

a042  0224  29 Nov 80
PM-Jordan-Syria, 1st Ld-Writethru, Precede Ramtha, a032,430
Eds: Syria preparing people for conflict, new info, editing
throughout
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - Syria's Soviet-backed regime appeared to be
preparing public opinion today for an armed conflict with neighboring
Jordan, a close U.S. ally in the Middle East. Both sides already have
massed military forces along their border.
    ''Jordan has become a training camp for murderers and saboteurs sent
to carry out terrorism in Syria at King Hussein's personal
instructions,'' said a front-page editorial in Syria's leading
government newspaper, Tichrin.
    ''It is the right of Syria to protect its national security, and
also the security of Arab nationalist movements at any place, with
every effective means even if they are not brotherly means,'' Tichrin
said.
    The state radio also warned that ''Syria will have no mercy for any
enemy'' and would ''stop at nothing to safeguard its national
security and the security of its citizens.''
    The Syrian regime holds Jordan responsible for a 16-month campaign
of bombings and assassinations by the fundamentalist Moslem
Brotherhood that claimed more than 200 lives, including three Soviet
advisers, in Syria.
    Despite Jordan's denials, President Hafez Assad insists King
Hussein's government is deliberately helping the Brotherhood with
money and equipment in a drive to overthrow Assad's 10-year-old
regime.
    The leftist Beirut newspaper As-Safir, which is close to Syria, said
Assad would take up arms against Jordan to close the Brotherhood's
training camps in Jordan's northern province of Irbid, along Syria's
southern border.
    Jordan has deployed scores of tanks and heavy weapons near the
border with Syria because of the 400 tanks and 20,000 troops Syria has
massed at the frontier.
    Associated Press correspondent Nicolas B. Tatro saw the front line
of the Jordanian armor about four miles south of Ramtha Friday, but
there was no evidence of Jordanian troops.
    He said Jordanian tanks, their guns pointed toward Syria, sat on
rocky, treeless hills behind freshly dug earthen entrenchments.
    Artillery emplacements, scout cars and armored personnel carriers
were deployed in a V-shaped line on either side of a cross road, some
dotting hilltops and other in the middle of farm fields.
    Tatro could not see the Syrian forces from the border post.
    Informed sources said they were deployed Nov. 20 during a conference
of Arab foreign ministers prior to the Arab League summit meeting in
Amman, the Jordanian capital.
    Syria boycotted the summit because it wanted to belittle Hussein and
keep him from turning the meeting into a platform for supporting
Iraq, Syria's rival and Jordan's ally, in the war with Iran.
    
ap-ny-11-29 0524EST
**********

a052  0428  29 Nov 80
PM-War Rdp,300
Claim Four Iraqi Missile Boats Sunk
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran claimed it sank four Iraqi missile boats
and attacked Iraq's Persian Gulf offshore oil terminal at Mina
al-Bakr, killing 10 Iraqi troops and setting parts of the installation
on fire.
    Iraq made no mention of Iran's claims, but said it sank two Iranian
navy vessels in the Karun River in Iran's southwestern oil province
of Khuzistan as the war continued into its 69th day today.
    Tehran Radio said Iran's helicopter gunships staged fresh attacks on
Iraqi lines around Abadan and the highway town of Susangerd, 85 miles
to the north, claiming 27 Iraqi deaths in both areas.
    Iran has been claiming Iraq was moving fresh reinforcements of
troops and tanks for a third penetration assault into Susangerd in
order to open a 30-mile stretch of highway for an Iraqi advance on
Ahwaz, the Khuzistan capital.
    Iran claimed to have repulsed two Iraqi attempts to capture
Susangerd last week. The Iranians say the Iraqis attempted to take
Susangerd to save face for failing to capture Abadan.
    Abadan is the last major stronghold left for Iran on Shatt-al-Arab,
the 120-mile-long estuary that Iraq is fighting to bring under its
exclusive control.
    A 1975 agreement, which Iraq abrogated five days before the war
broke out on Sept. 22, put the two countries' common border midstream
at the Shatt, Iraq's only waterway to the Persian Gulf.
    Iran's Pars news agency claimed President Abolhassan Bani-Sadr rode
river boats, jeeps and motorcycles in inspection tours that took him
to within 200 yards of Iraqi bunkers o Friday.
    Western reporters have been barred from the battlezones, so there
was no way of confirming the claims. Hwever, military observers
believe Iran's battle communiques are highly exaggerated.
    
ap-ny-11-29 0727EST
**********

a056  0448  29 Nov 80
PM-War Rdp, 1st Ld, a052,110
URGENT
Eds: Heaviest sea battle of war, new info grafs 1-3
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - The Iranian and Iraqi navies fought their
biggest battle of the 69-day-old Persian Gulf war today, with their
jets dueling overhead, both sides reported.
    Iran claimed it sank four Iraqi missile boats and six Iraqi gunboats
and that its commandos raided the Iraqi oil harbor near the major
port of Fao, killing 10 Iraqi troops and setting huge fires.
    Iraq claimed it sank three Iranian warships and shot down three
Iranian fighter-bombers in the battle, near the Iraqi oil pipeline
terminal of Mina al-Bakr at the Gulf's northwestern edge.
    Iraq also said it sank two Iranian navy vessels in the Karun River
in Iran's southwestern oil province of Khuzistan.
    Tehran Radio: 2nd graf
    
ap-ny-11-29 0748EST
**********

a059  0502  29 Nov 80
PM-Star,140
Christmas Star Relit On Flagstaff Mountain
    BOULDER, Colo. (AP) - An electric Christmas star commemorating the
plight of the American hostages in Iran has been relit on Flagstaff
Mountain in Boulder.
    The star, to be kept burning each night as long as the American
hostages are held in Iran, was stolen after last Christmas.
    The Boulder Chamber of Commerce, which sponsors the star, launched a
fund-raising drive to buy a replacement. Chamber President Richard
Hadley said $2,000 was needed for a new star and the drive brought in
$3,000, most of it from school children.
    Hadley said the extra money collected will be placed in an account
to pay for the upkeep of the monument.
    Two schoolchildren lit the star just after sunset Friday, the
hostages' 391st day in captivity.
    
ap-ny-11-29 0801EST
**********

a072  0621  29 Nov 80
PM-Brazil-Arms, Adv 03,780
$adv 03
For Release PMs Wed Dec. 3
Brazil Becoming Exporter of Weapons
By PETER EISNER
Associated Press Writer
    BRASILIA, Brazil (AP) - The military-backed government is stepping
up efforts to make Brazil a leader in exports of high quality,
low-cost weaponry. Its products range from rifles to guided missiles.
    While official secrecy covers most transactions involving Brazil's
weapons industry, Brazilian sources say arms exports in the first four
months of 1980 reached $1 billion, surpassing the total for all of
1979. The exports could total $3 billion this year.
    Top equipment for sale includes the so-called Cascavel light armored
tank, now being used by Iraq in its war with Iran; hand weapons,
including a machine gun rated by U.S. military specialists as among
the best available, and a series of increasingly sophisticated
aircraft easily adapted to military use.
    Diplomatic and military sources say development plans call for
eventual production of a conventionally powered attack submarine and a
sophisticated guided missile. According to unconfirmed reports, the
missile will be capable of delivering a nuclear warhead.
    ''The weapons industry is diversified and includes some excellent
material, although Brazil still depends on design copying and
subcontracts many parts from other countries,'' said a ranking Western
military source, who asked not to be further identified.
    The Iran-Iraq war is giving the Brazilian arms industry a rugged
test. Military and diplomatic sources say the Cascavel - which its
manufacturer, Engesa, calls the best-selling light armored vehicle in
the world - has performed well in action for the Iraqis. It is
equipped with a 90mm cannon and two 50mm machine guns. Brazil is
believed to have already delivered about 200 Cascavels to Iraq at an
estimated cost of slightly more than $300,000 each. There are
unconfirmed reports Iraq now is ordering more.
    Brazil's arms export program is coordinated by an army-controlled
agency called the Brazilian War Material Industry, which has the
Portuguese-language acronym IMBEL. As one sign of prosperous times,
the agency recently moved from cramped office space in a government
building to its own headquarters here in a ceremony led by President
Joao Figueiredo, the fifth former army general to rule the country
since a 1964 military coup.
    IMBEL also has been in charge of a domestic equipment program that
has turned the nation's armed forces from reliance on World War II
vintage vehicles, ships and artillery to a modern fighting force.
    The growth of the industry has included use of license agreements
and joint ventures to win Brazilian production rights and eventual
domestic control as technical skills are obtained.
    There have been recent contacts with Italian officials which may
lead to production in Brazil of a tactical fighter plane known as the
AMX. Britain has been collaborating with the Brazilians on production
of so-called Free Gates class support ships.
    European diplomats say there is little doubt that the acquired
technology already is making Brazil a keen competitor in international
weapons sales, especially in the Third World, where it is an
acknowledged leader.
    ''We must say there has been a tendency to inflate the importance
and sophistication of some of the Brazilian weaponry,'' said one West
European diplomat. ''But in fact we are headed for strong competition
from Brazil and conflicting production of similar types of
equipment.''
    One major objective of the government's accelerated military sales
overseas is to improve Brazil's balance of payments standing,
predicted to end the year with a deficit of about $3 billion.
Officials say another is to create jobs.
    Observers agree, however, that weapons exports gain prestige and
political standing for this nation of 123 million as it seeks
recognition as a leader in the Third World, while decreasing
technological dependence on the industrialized countries.
    Brazil announced recently it is close to perfecting its first wholly
domestic computer, and predicts it will be launching its own domestic
satellites well before the end of the decade. Its missile program,
while still in the testing stage, is raising interest with recent
unconfirmed news leaks that Brazil may have nuclear delivery
capability by 1985.
    A European source commenting on the reports said, ''Almost any
missile theoretically can carry some type of nuclear weapon.''
    However, the U.S. military source said: ''I've read the news reports
and I believe them. But I'm wondering why they were published and if
this might be intended as some sort of warning.''
    Brazil, armed with a 1975 agreement with West Germany for
construction of a series of nuclear power plants, admits that it
eventually will have the technology to build nuclear weapons. Foreign
Minister Ramiro Saraiva Guerreiro said earlier this year that Brazil
reserves the right to use its technology for peaceful purposes,
including detonation of controlled nuclear devices for such things as
building dams or opening shipping channels.
    End Adv PMs Wed Dec. 3
    
ap-ny-11-29 0920EST
**********

n006  0629  29 Nov 80
 
BC-PEROT-STYLE (Undated)
c. 1980 N.Y. Times News Service
    From the 52 American flags commemorating the hostages in Iran that
surround Electronic Data Systems' corporate headquarters in Dallas,
to the brisk military bearing of its employees, H. Ross Perot's
fingerprints are everywhere.
    Perot left a prosperous career as a computer salesman for IBM in
1962 to begin EDS. Six years later he became a billionaire after his
company went public.
    But a $70 million venture on Wall Street in 1971 with the purchase
of du Pont Glore Forgan, the brokerage house, proved a disaster.
After a merger in 1973 with Walston & Co., the combined brokerage
house went bankrupt the following year.
    Since, the talkative Texan with his famous crew cut has gained more
attention for his political activities, such as his one-man attempt
in 1968 to send food and medicine to American prisoners of war in
Vietnam, and a 1979 commando raid he sponsored to free two EDS
officials jailed in Iran.
    The capture of the American Embassy in Teheran last year sparked a
Country and Western song entitled, ''Where are You Now When We Need
You Ross Perot?''
    In Texas, Perot is something of an icon, because of his patriotic
activities and such enterprises as his statewide antidrug campaign.
    In his industry, he is looked on less fondly. Competitors say he
handles contract bidding like a commando raid.
    And his aggressiveness does not even subside in neighborly affairs.
Last spring, what is called the Great Helipad War broke out when
Perot asked Dallas' planning commission for permission to build a
helicopter landing pad at his home so he could fly three miles to
work without worrying about terrorist attacks.
    That brought heated opposition from next-door neighbor J. Fred Bucy,
president of Texas Instruments. The squabble between the two titans
of electronics ended with the commission rejecting the request.
    
ny-1129 0932est
**********

n010  0716  29 Nov 80
 
BC-MITSUI 2takes
(FINANCIAL)
BY HENRY SCOTT STOKES
c. 1980 N.Y. Times News Service
    TOKYO - When a strong company with a first-class international
reputation runs into trouble - Chrysler in the United States or
Lockheed earlier in the 1970s - government is often pulled in while
stockholders bail out and senior executives fall by the wayside.
    In Japan, things are done a bit differently. Witness the reaction of
Mitsui & Co., One of the nation's powerful trading companies, to its
nightmare in Iran, where a failing petrochemical project threatens to
swallow up a huge chunk of its net assets of well over $4 billion.
    The 12-year history of Japan's largest direct investment abroad has
been checkered. Yet so far no one has been dismissed, no one at
Mitsui has even been blamed in public. The business community, led by
Mitsui's three banks, which are also top shareholders, will help tide
over any squeeze on Mitsui's cash flow and insure that there is no
risk of bankruptcy.
    Mitsui may emerge from its test even better off in a few years'
time, buoyed by high performance in other sectors, huge investments
elsewhere than in Iran - and the over-all strength of the
fastest-growing, most stable big industrial economy in the world.
    The history of Mitsui's ill-fated Iranian commitment goes back to
November 1968, when a vice president of the firm, Sueyuki Wakasugi,
later to be president, was traveling south from Tehran by car.
Wakasugi saw the prodigious flaring of waste natural gas from Iran's
huge oil fields. He looked at the glaring flare and thought,
according to the company, that ''this was a great loss to mankind''
and that the gas should be put to use.
    Company strategy evolved swiftly. It proposed to the shah's
government a high-level project, to be joined on the Iranian side by
the National Iranian Oil Co. as a 50-50 partner with Mitsui in a
petrochemical plant. It would be close to the oil fields at Ahwaz and
Marun and near the water on the Persian Gulf. Liquefied petroleum gas
and intermediary products needed in Japan could be shipped directly
by tanker.
    Mitsui, meanwhile, quietly agreed on spheres of interest with its
rival trading company, Mitsubishi. Mitsui would concentrate on Iran,
Mitsubishi on Saudi Arabia, to avoid excessive competition. These
were Japan's two major sources of petroleum and in return for direct
investments each company could hope to make direct deals for
long-term supplies of crude oil at stable prices.
    ''From the start we never thought to make much money out of the
scheme,'' said a Mitsui spokesman. The fundamental idea was to
enhance Japanese commercial clout in Tehran (and Riyadh) and to
obtain oil, as well as natural gas, for what was then the world's
largest crude importer. This was before the United States entered
world markets in the 1970s as a huge importer of crude in competition
with Europe and Japan, but Tokyo trading-house strategists foresaw a
continuing demand for imported energy, mainly oil, for their own
nation, which then - and now - shipped about 75 percent of all oil
consumed in Japan from the Middle East.
    All went well for a while after Mitsui in late 1968 reached quick
verbal agreement with the National Petrochemical Co., a subsidiary of
the National Iranian Oil Co., the shah's main vehicle for state oil
activity. A letter of understanding was signed in July 1971 after a
typically thorough Japanese industrial and site study lasting more
than two years. Basic agreement on a 50-50 joint venture was signed
in October 1971, envisaging a complex centering on an ethylene plant
of 300,000-ton annual capacity at Bandar Shapur on the Khor Musa
inlet of the Persian Gulf and costing about $500 million.
    Mitsui & Co., the core of a group of industrial, financial and
commercial firms, brought in two affiliates, Mitsui Toatsu Chemicals
Inc. and Mitsui Petrochemical Industries, to form an investment
company with two other companies, Toyo Soda Manufacturing and Japan
Synthetic Rubber. Mitsui group interest in the investment company,
which was called Iran Chemical Development, was no less than 80
percent, and the trading house had in turn 60 percent. Iran Chemical
Development formed the Iran-Japan Petrochemical Co. with Iran's
National Petrochemical in April 1973, splitting the shares equally.
Basic engineering work began in July with filling work at the site
starting up in November 1973.
    But trouble struck with the Arab-Israeli war and the explosion of
oil prices worldwide that followed. After crude prices quadrupled,
cost estimates for the Bandar Shapur project went haywire as
engineering companies everywhere escalated costs for Middle East
work. Mitsui considered shelving the Iranian project, slowed all
on-site activity, consulted with the Japanese government (which
greatly favored the project as a way to seal Japan-Iran ties) and
finally, in February 1975, renegotiated a construction budget more
than quadrupled, to $2.3 billion.
    The hiatus embittered relations between Mitsui and the Iranian
authorities, leaving many financial details still in the air. And to
clear the atmosphere, Mitsui leaned on the Japanese government,
formed by the ruling Liberal Democratic Party and financed mainly by
big business here, to send Toshio Komoto, then Minister of
International Trade and Industry, to Tehran. Komoto, a former
shipping owner, negotiated a loan package with the Iranians under
which the Japanese side agreed to furnish $1 billion and the Iranians
$830 million with the equity of the joint company raised to $400
million, making a total close to the required $2.3 billion.
(MORE)
    
    
ny-1129 1019est
**********

n011  0728  29 Nov 80
 
BC-MITSUI 1stadd
(FINANCIAL)
NYT TOKYO: $2.3 billion.
    ''So the government openly entered the picture at this stage,'' said
a Mitsui executive, ''but the risk was still ours.''
    The now five-year-old negotiations with Iran on finance were
significant as they showed that Mitsui's financial resources were
strained. Typically, Japanese trading houses run on slim profit
margins relative to revenue, and Mitsui cannot easily afford interest
burdens on the Iranian project that now are believed to run, on an
exposure of $750 million, to well over $50 million a year. When the
project, due for completion last year, ran into the Iranian
revolution in late 1978, management, under Yoshizo Ikeda, who was
president at the time, was aghast. Obstacles and harassments at the
site, such as strikes, sabotage and threats to Japanese employees,
prevented the progress of construction work after December 1978,
according to a company source.
    Ikeda, a tall and broad-shouldered man of 69, is typical of the men
Mitsui evolves as leaders. He is an executive of strong character,
quite different from the organization-minded Mitsubishi men, rivals
who often seem cautious by comparison. Mitsubishi refrained from
investing in a petrochemical complex in Saudi Arabia similar to
Mitsui's Iranian project. Such a project has been under negotiation
with the Saudis for over a decade with no sign yet of agreement to
proceed.
    The Mitsui president faced a situation rapidly slipping out of
control in Iran: strikes by Iranian workers, no customs clearance, no
air transportation for replacement of manpower or supply of equipment
by ship, harassment against foreigners and short supply of Iranian
money. The project was brought almost to a standstill in March last
year, Mitsui said.
    Ikeda's revamped strategy, worked out with his close friend,
Masayoshi Ohira, then prime minister, in the summer of 1979,
recognized the inevitable: another large increase in costs not to
exceed $3 billion; Japanese government direct participation in the
project for the first time with investment agreed to of as much as
$100 million; dispatch of the Minister of International Trade and
Industry, Masumi Esaki, to Tehran to explain the new Japanese policy
to the revolutionary government.
    But new troubles struck the next month with the capture of the
United States Embassy in Tehran, followed by resignation of the
Iranian cabinet and cancellation of a resumption ceremony Nov. 11 at
Bandar Shapur, ominously renamed Bandar Khomeini after the Iranians
hailed the project as a historical monument to the revolution in Iran.
    This time, Mitsui, much as the United States government, was trapped
in the Iranian revolution. Eimei Yamashita, a former deputy trade
minister, was secured by Ikeda to head the Japanese company in the
joint project. He flew repeatedly this year to Tehran to renegotiate
a start of the project and return of some 750 engineers to the almost
abandoned plant site.
    The Iranians, complaining that Mitsui was failing to abide by
commitments, threatened to suspend pay to local Japanese directors,
put some Mitsui officials on planes to Tokyo under duress and
threatened to cut off oil supplies for Japan (which suspended
purchases in April this year, respecting United States wishes for a
partial embargo on trade).
    Costs at Bandar Khomeini climbed another notch to $3.5 billion as an
abortive re-start was begun by Mitsui early in the summer - only to
be halted with the Iran-Iraq war, and then five separate bombing
attacks by Iraqi planes on the plant after September.
    Ikeda, a casualty of the project to which he was committed, was
quietly moved up to chairman early in the summer. His successor,
Toshikuni Yahiro, promoted from within the organization, is
understood to have resolved to grasp the nettle: Mitsui, which
insured a little over half its $750 million exposure with the
government, is negotiating an eventual withdrawal. Company and
government executives denied a recent published report here that
Mitsui would write off the full amount. But Mitsui, if it withdraws
of its own volition, will be unable to claim insurance.
    The only certainty at this stage is that Mitsui suffered the biggest
loss in its post-1945 history. If the Middle East war goes on, as
seems likely, and even more if it spreads to neighboring Arab states
on the Gulf, then Mitsui would seem to have a basis for invoking
force majeure, or major unforeseen circumstance, for claiming
insurance. Still the net loss will run into many hundreds of millions
of dollars, and insurance claims, given many uncertainties -
including the extent of bombing damage - are likely to take at least
six months if not years to adjudicate. Yet backed by its three main
shareholders - Mitsui Bank, Fuji Bank and Bank of Tokyo (with the
support of the central bank, the Bank of Japan) - the trading house
may rapidly reconstitute in net profit terms by the mid-1980s, Tokyo
businessmen believe.
    Executives at the company, whose gleaming new head office faces the
Imperial Palace in central Tokyo, don't appear disheartened.
    ''It's been a major drama,'' said one, ''and it's gone on for many
years.'' The officials are confident that Mitsui, with its global
network of offices, diversified trade and investments abroad and in
Japan and staff of nearly 10,000, will retrench without any direct
aid from government, aid that that would tend to stifle initiative in
the Mitsui view. ''Independence is everything to us,'' said an
executive.
    
    
ny-1129 1031est
**********

n012  0732  29 Nov 80
 
BC-MITSUI-INVEST (UNDATED)
(FINANCIAL)
c. 1980 N.Y. Times News Service
    Mitsui is not alone in standing to lose a bit of its shirt in Iran.
American and European companies were heavily invested there during
the days when Shah Mohammad Reza Pahlavi was impatient to turn Iran
into ''the West Germany of the Middle East,'' as he liked to say.
    Thus in addition to petrochemical plants such as Mitsui's there were
steel mills, nuclear plants, new telephone systems, highway and
housing developments in various stages of building and planning - all
the trappings of instant industrialization. The value of Iran's
imports grew to $16 billion by 1977, from a lowly start in 1972 of
$194 million.
    Some 20 major American companies had invested in factories there -
the likes of Du Pont, General Motors, Gillette and Coca-Cola. And the
major international construction companies were hard at work,
including Fluor, Bechtel, Brown & Root and Morrison-Knudsen. The
Starrett Housing Corp. was building a large luxury condominium
overlooking Tehran. Starrett had hopes that the project would
generate as much as 40 percent of company profits by 1978.
    Now it is a matter of waiting. About 300 companies have sued Iran.
GM, for instance, is seeking $58 million, charging that Iran made its
45 percent interest in GM Iran worthless. The largest suit, seeking
$366 million, has been brought by the Chase Manhattan Bank. Iran's
funds seized by the United States, estimated at $8 billion to $11
billion, are frozen awaiting the outcome of the hostage situation.
    
ny-1129 1035est
**********

a205  0844  29 Nov 80
AM-National Briefs,650
    MYRTLE BEACH, S.C. (AP) - Twenty runners who started across South
Carolina in a Thanksgiving Day ''turkey trot'' for charity finished a
310-mile relay race Saturday, 41 hours after starting.
    Wayne Morton, spokesman for sponsoring radio station WSNW in Seneca,
S.C., said the runners, who ran nonstop relays, came close to
achieving their $6,000 fund-raising goal.
    Completing the final mile here at 1:23 a.m. was Seneca surgeon Rudy
Nimmons, 60. Nimmons joined the runners at the Chattooga River on the
South Carolina-Georgia border Thanksgiving morning.
    The event was to raise money for the American Diabetes Association.
    ---
    DENVER (AP) - Jose Calderon, a communist who threw two eggs at
independent presidential candidate John Anderson, has been sentenced
to 30 days in jail.
    The sentence was handed down Friday by U.S. District Judge Alfred
Arraj, who recommended Calderon be placed in a work-release program.
    Calderon, 34, a member of the Communist Workers Party, was convicted
of assaulting a congressman, a federal misdemeanor which carries a
maximum sentence of one year in prison and a $5,000 fine.
    The charge stemmed from an incident at the National Governor's
Association conference in August, when Calderon interrupted a speech
by Anderson, R-Ill., and hurled the eggs.
    ---
    BOULDER, Colo. (AP) - An electric Christmas star commemorating the
American hostages in Iran is back atop Flagstaff Mountain, and
officials hope to keep it burning this time until the hostages are
freed.
    The Boulder Chamber of Commerce raised $3,000, mostly from children,
to buy the star as a replacement for a similar star that was stolen
after last Christmas.
    Chamber President Richard Hadley said $2,000 of the money was needed
to buy the star. He said the rest would be deposited in an account to
pay for its upkeep.
    Two children lit the star just after sunset Friday, the hostages'
391st day in captivity.
    ---
    NEW ORLEANS (AP) - Coast Guard hearings start this week into two
Mississippi River collisions between Liberian tankers and smaller
boats in which four people were killed and two injured.
    Officials said one inquiry would begin Monday into a collision
between the tanker Coastal Transport and the workboat Sallee P.
    Three Sallee P crewmen died and another was hospitalized when the
two vessels collided Tuesday at the mouth of the Mississippi.
    The Coast Guard said a second hearing would start later this week
into the cause of a Thanksgiving Day collision between a 317-foot
tanker and a tugboat 30 miles downstream from Baton Rouge, La.
    One crewman was killed aboard the tug, which sank, and another was
injured. Officials said no pollution was reported after the accident,
and no one was injured aboard the tanker.
    ---
    REDDING, Calif. (AP) - Motorists may have been sprayed with the
toxic chemical PCB when it leaked from a transformer being carried by
a tractor-trailer along a 20-mile stretch of highway, officials said.
    California Highway Patrol officials said the truck's driver, Collin
Bradley, 27, of Warren, Pa., and several motorists already have been
screened at a hospital. None were admitted. They said other motorists
driving near a truck on Interstate 5 north of here Friday should call
a doctor.
    The truck was taking a transformer from an Oregon power company to
Southern California when a lid blew off the unit. Officials said the
transformer contained 1,600 gallons of oil saturated with
polychlorinated biphenyl, PCB, long used as an insulator in
transformers. Manufacture of PCB was banned in the United States after
it was linked to skin and liver irritations and cancer.
    It was uncertain how much PCB had leaked.
    
ap-ny-11-29 1144EST
**********

n022  0915  29 Nov 80
 
BC-KOMATSU
(Financial)
By MIKE THARP
c. 1980 N.Y. Times News Service
    TOKYO - In 1942, representatives of the Japanese Imperial Navy came
to Fusao Yamamato, a young engineer with little-known Komatsu Ltd. in
Tokyo, and told him of a strange vehicle American forces were using
in the South Pacific islands.
    The navy men asked Yamamoto what it was. ''It must be a so-called
bulldozer,'' he replied. They asked if Komatsu could make the
machine, and the young engineer said it would take six months. ''We
need it in one month,'' the navy men said.
    A month later, the first prototype of a Japanese-made bulldozer
passed the navy's inspection. Before the end of the war, Komatsu made
about 200 more for the military's use. In 1978 one of those early
five-and-a-half-ton models was found still plowing up the earth of an
Australian farm. The bulldozer was repatriated to Komatsu's modern
showroom in downtown Tokyo.
    Now Komatsu makes a lot more than bulldozers. It has become Japan's
largest construction machinery company and the second largest in the
world, with annual sales expected this fiscal year of $2.4 billion
and net income of $113.7 million at current exchange rates. It
dominates the local market, holding an estimated 60 percent share.
    But unlike many other Japanese companies that have steamrollered
their foreign competitors into secondary roles in the market, or
forced them out completely, Komatsu is fighting to maintain its place
as a strong No. 2 to the world leader in the industry, the
Caterpillar Tractor Co. of Peoria, Ill.
    ''We eagerly want to catch up with Caterpillar by modeling ourselves
after them,'' said Ryoichi Kawai, the president of Komatsu, in an
interview. ''But Caterpillar has more than three times our sales and
is a very good company. It will be very difficult to catch up, but at
least we intend to maintain the same growth rate as Caterpillar.''
    In recent years, Caterpillar and Komatsu have grown steadily, at the
expense of other companies in the field, such as Massey-Ferguson
Ltd., the Allis Chalmers Corp. and the International Harvester Co.
Only Deere & Co., with its solid base in agricultural machinery,
seems able to keep within striking distance of the Big Two.
    ''Opportunities in the marketplace have substantially subsided, and
Komatsu is still No. 2,'' said one analyst who follows the industry.
''In large bulldozers - 160 horsepower, for instance - Caterpillar
has 58 percent of the world market.'' That is nearly double Komatsu's
share.
    Since the Japanese market is not expected to grow much in the next
few years and Caterpillar-Mitsubishi, a 50-50 joint venture, holds a
30 percent share, Komatsu must look overseas for expansion
opportunities.
    In the first half of its fiscal year, Komatsu exported 40 percent of
its sales. Tsukasa Yoshikawa, an analyst with the Wako Economic
Research Institute, predicts that exports will account for 50 percent
of sales in the second half. ''We expect Komatsu to be forced to
export more than 50 percent of sales in the next two to three
years,'' Yoshikawa said.
    The company's once-thriving business in Iraq has been halted because
of the war with Iran. The United States construction industry remains
in a slump. Komatsu's exports to Southeast Asia's lumber industries
appear to have peaked.
    As a result, Komatsu has embarked on a product diversification
program. ''Our efforts will be devoted to the development of very
small machines for home use, and improving our sales networks; our
machine tools have gotten favorable reactions,'' said Kawai.
    In addition, Komatsu will rely on its stamping presses that make
automobiles and parts. ''Our production lines are too busy to meet
the demands from American auto makers,'' he added.
    Komatsu's products get high marks from its finicky Japanese
customers. The Toyota Motor Co. has purchased more than 600 presses
from Komatsu because those stamping machines ''show very good
quality, cost and reliability,'' said a Toyota purchasing department
official.
    Seated in his comfortably cluttered office, which has shelves lined
with volumes on French Impressionist art and the Book of Kells, an
illuminated copy of the Gospels in Latin, attesting to his broad
interests, the shirt-sleeved Kawai cited Komatsu's ''total quality
control'' program as one of the company's underpinnings. ''It does
not mean merely inspecting parts in the production process but
integrated efforts to meet the demands of the users in advance,'' he
said.
    Komatsu, which asserts that it developed the world's first
radio-controlled bulldozer, amphibious bulldozer and underwater
bulldozer, also will stress research and development. Yasuharu
Suzuki, senior analyst of the Japan Securities Research Institute,
estimated Komatsu's research and development spending at 2.1 percent
of sales in 1978 and 2.5 percent last year. ''It also intends to set
up a research lab for about $47 million,'' Suzuki said.
    One market - China - has received special attention from Komatsu.
Kawai has visited China more than 30 times in the last 20 years.
''Some were for business, but I am personally deeply concerned about
China,'' he said. ''I think the improvement of product quality would
be crucial for the development of Chinese industry.''
    Komatsu's experts helped upgrade the machinery made by a plant near
Peking employing 10,000 workers. ''I told the Chinese managers they
should develop their own style of total quality control,'' he
recalled. ''Now the plant is a model for China's technological
development.''
    
ny-1129 1217est
**********

a207  0920  29 Nov 80
AM-Hostages,440
By The Associated Press
    Iranian government officials Saturday withheld official comment on
the fate of the 52 American hostages and said they were unaware of any
new developments.
    Spokesmen for Iranian Prime Minister Mohammad Ali Rajai said in
telephone interviews they had no new information despite several news
reports last week claiming the government had taken custody of the
hostages from the U.S. Embassy captors.
    Later, Hashemi Rafsanjani, speaker of the Iranian Parliament, or
Majlis, brushed aside questions on the subject at a news conference.
Asked about the reports and for information on the location of the
hostages, Rafsanjani smiled and replied: ''I don't know where they
are, I didn't even know where they were before.''
    The exact location of the Americans has not been confirmed since the
unsuccessful U.S. rescue attempt last April, when the hostages'
captors claimed they had scattered the Americans throughout the
country.
    Government sources denied Thursday evening that any transfer had
taken place although they said preparations for such a move had been
stepped up.
    Government offices were closed Friday, the Moslem holy day.
    Spokesmen for the militants, contacted at the occupied U.S. Embassy
on Friday and Saturday, also declined comment on news of the captives
who have been held for nearly 13 months.
    But the militants did say they had no immediate plans to vacate the
27-acre embassy compound located in the heart of Tehran.
    The militants received approval Nov. 3 from revolutonary leader
Ayatollah Ruhollah Khomeini to hand over custody of the hostages to
the government. The previous day, the Majlis formally endorsed
Khomeini's four proposed conditions to be met by the United States in
exchange for the hostages's release.
    Rajai has said the government will proceed with the transfer but
there has never been confirmation that the move has taken place.
    The four conditions for the hostages' release, now under negotiation
between Iran and the United States, are return of the wealth of the
late shah and his family, the release of $8 billion in frozen Iranian
assets, withdrawal of legal claims against Iran and a U.S. pledge not
to interfere in Iranian affairs.
    The United States is expanding on its original response at the
request of the Iranian authorities. A new U.S. message was expected to
be delivered to Tehran sometime this week.
    In a separate matter, Rafsanjani told reporters he was convinced as
a result of his recently concluded Middle East tour that the Soviet
Union is not aiding Iraq in its continuing war with Iran.
    He reasserted that Iran would not seek peace until the invading
Iraqi forces have been pushed out of now-occupied Iranian territory.
    
ap-ny-11-29 1219EST
**********

a217  1030  29 Nov 80
AM-War Rdp,Bjt,600
Iran Iraq Fight Biggest Naval Battle of War
Laserphoto NY17
By STEVE K. HINDY
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraqi and Iranian warships battled near
Iraq's key oil terminals at the northern end of the Persian Gulf
Saturday in what both nations called the heaviest sea battle of the
69-day-old war.
    The sea battle, accompanied by fighter jet duels, began in the early
morning with Iranian commando raids on the Iraqi offshore oil
terminal of Mina al-Bakr and the Iraqi port of Fao at the mouth of the
Shatt al-Arab waterway, Iran claimed.
    The Iraqi defense command, in a communique broadcast on Baghdad
radio, claimed it shot down three of Iran's U.S.-made Phantom
jetfighters and destroyed three Iranian warships.
    It said two other Iranian vessels were sunk at the Karun River,
which flows eastwards from the 120-mile-long Shatt near the embattled
Iranian cities of Khorramshahr and Abadan.
    Tehran radio said its forces killed 10 Iraqis in the terminal raids,
set the facilities on fire and sank four Iraqi missile boats and six
gunboats.
    Iran's 20,000-man U.S.-supplied navy has 50 pieces, including three
destroyers and four missile frigates, according to the autumn 1980
report of the London-based International Institute for Strategic
Studies. Iraq's 4,250-man Soviet-equipped navy has 48 pieces, mostly
gunboats, according to the report.
    Fao is the site of the pumping stations that push crude oil to
Iraq's terminals at Mina al-Bakr and Khor al-Amaya, roughly 12 miles
south of Fao and due west of Kuwait. The two deepwater terminals,
which have a combined capacity of 2.8 million barrels daily, have not
been in operation since the early days of the war.
    Iraq did not report the results of the commando operation. Oil
experts have said heavy damage to the sophisticated platforms could
seriously set back Iraq's hopes of resuming its pre-war export level
of 3.2 million barrels daily.
    The Iraqi command said 57 Iranian troops were killed in ground
combat and helicopter gunship attacks in all theaters of the
300-mile-long battlefront in western Iran's oil-rich Khuzistan
Province.
    Communiques from both combatants said Iranian warplanes bombed
Iraq's northern cities of Mosul and Dokan at mid-morning. Iran
escalated its air attacks on the northern oil-producing regions in the
past week, after oil industry sources said Iraq resumed export of
about 400,000 barrels of oil daily through a trans-Turkish pipeline -
part of which is located in the northern area.
    Tehran radio said Iranian President Abolhassan Bani-Sadr, who
returned safely to his secret frontline headquarters from a visit to
the besieged Iranian city of Abadan, said Iran had ''mustered the will
to go on the offensive, the result of which will soon be apparent.''
    Tehran radio said Iran's helicopter gunships staged fresh attacks on
enemy lines around Abadan and the highway town of Susangerd, 85 miles
to the north. It said 27 Iraqis were killed in both battles.
    At the northern end of the front, both nations reported continuing
hill-to-hill paratroop battles for the Zagros Mountain foothills which
command main highways from Iran's border towns to Baghdad, roughly
100 miles to the west.
    Shortly before the war erupted on Sept. 22 following months of
border conflicts, Iraqi President Saddam Hussein abrogated the 1975
treaty that put the Iraq-Iran border midstream in the Shatt and
demanded Iranian recognition of Iraqi sovereignty over the waterway.
    Officials in Iran have repeatedly refused, saying they will not stop
fighting until all Iraqi forces leave Iran.
    Iran has claimed 1,519 Iraqi deaths in the past week's fighting.
Iraq claimed 494 Iranian deaths during the same time period.
    
ap-ny-11-29 1330EST
**********

n034  1056  29 Nov 80
 
BC-IRAQ
By YOUSSEF M. IBRAHIM
c. 1980 N.Y. Times News Service
    BAGHDAD - With the prospect that the war with Iran will continue for
some time, the Iraqi government has begun to tone down its emphasis
on nationwide mobilization and is seeking instead to return the
nation of 13 million to ''business as usual.''
    The policy shift has come about mostly because of Iraq's dashed
expectations that the government of Ayatollah Ruhollah Khomeini would
fall and that the Iranian armed forces would be unable to sustain the
heavy fighting of the Persian Gulf war, now entering its third month.
    There is little doubt in this capital that the forces of President
Saddam Hussein will eventually triumph against Iran or that his
governing Baath Party will retain its grip on power. But the
government, which has never been known to take chances with internal
dissension in the 12 years it has been in power, is seeking to
insulate the population from the emotional drain of a long conflict
while it plans to carry on its campaign into the winter and beyond if
necessary.
    The return to normality has been reinforced by a number of decisions
over the last three weeks. Universities reopened on Nov. 22, two
months after they were shut down as Iraq started its campaign against
Iran. The exceptions are the universities of Basra, which is too
close to the southern war front, and Sulaimaniya, which is near the
oil center of Kirkuk, in the north, the target of constant raids by
Iranian planes.
    The capital, Baghdad, has eased its degree of war alert. Goods are
plentiful in the shops, which are allowed to stay open late. Traffic
lights are working again and cars can circulate with headlights
blazing, although street lights are still off. Even nightclubs have
reopened.
    Three weeks ago government agencies sent word to foreign businessmen
who fled the country at the start of the war to return and resume
work on multi-billion-dollar development projects. A British trade
mission just left Baghdad after a weeklong visit during which it
received a clear message. ''Those who will not respond can expect to
be penalized by the loss of their contracts,'' a British businessman
said of the Iraqi attitude.
    The official line adopted by the government-controlled press is
radically different from that of a month ago. Iraq is now portrayed
as the victim of aggression by the Persian regime of the ayatollah;
at a news conference Thursday Hussein reiterated the assurance that
his troops would withdraw from occupied Iranian territories as soon
as Iran agreed to become ''a good neighbor.''
    ''The problem which is now recognized here is that there is nobody
on the other side that can negotiate a settlement,'' a Western
diplomat said. Until the Iranian leadership comes around to the view
that a peaceful settlement is in order, Iraq appears ready to
relegate the war to the status of a minor irritant and to take it off
the minds of the public.
    The decision rests on a new strategic evaluation of the war's aims
and its impact on the Persian Gulf. After weeks of hesitation the
Arab countries of the region have swung their sympathies in favor of
Iraq, apparently assured that an Iranian victory is remote and,
consequently, that Iran's ability to destabilize the conservative
governments of Saudi Arabia, Kuwait, Qatar and the United Arab
Emirates is weaker than ever.
    Also, the members of the Iraqi government, with its highly efficient
organization, believe they have secured the internal front. In recent
months hundreds of pro-Iranians have been arrested and, according to
diplomats, many have been executed.
    
    
ny-1129 1359est
**********

n035  1101  29 Nov 80
 
BC-IRAQ Addatend
NYT BAGHDAD: been executed.
    With army casualties kept at a minimum, dissension among army groups
is believed to have little prospect of manifesting itself.
    The Shiites, the Islamic sect that represents 60 percent of the
population, appear unmoved by Ayatollah Khomeini's call to rise in
revolt against Hussein. Moreover, the Iranian Army is clearly losing
its effectiveness. Air raids against Iraq have diminished and an
Iranian counteroffensive failed to regain lost ground.
    Iraq has also successfully kept its overland supply lines open from
Jordan and the Arabian Peninsula, and the government's conciliatory
attitude toward those Arab neighbors that have failed to show visible
support has averted any further breakdown in relations. The fact that
the summit meeting of Arab countries in Amman took place at all has
reassured Iraq of the minimum amount of Arab solidarity it needs for
face-saving reasons.
    The only possible threat to the Iraqi president's grasp on power can
come from what an Arab diplomat described as a palace coup in the
form of a split in the ranks of the governing party. ''One can assume
that the search for a scapegoat for this stagnating war is one, but
Hussein has repeatedly shown that he comes out on top in these
things,'' he said. ''He is an artful plotter himself.''
    The abundance of money from oil revenues, estimated at $36 billion a
year in 1979, has insulated the population from hardship. Diplomats
say that the economy can easily shoulder the burden of the war, even
without additional oil revenues, for a year or more. Having assured
the cooperation of Jordan in the use of the port of Aqaba to channel
goods destined for Iraq, the government seems to have the ability to
maintain supplies.
    If Iraq succeeds in reviving economic development, which has
stagnated with the departure of most of the million expatriate
technicians when the war began, it appears able to slip back into
routine.
    In a highly secretive country it is difficult to detect possible
obstacles to this approach to living with the war. The military
effort on both sides is settling into a static campaign that may last
until the heavy rains that have just begun end in the spring and the
terrain dries enough to allow the movement of troops in the desert
plains between Iraq and Iran.
    
ny-1129 1404est
**********

a223  1118  29 Nov 80
AM-Begin, Bjt,650
Begin Government at its Weakest; Resignation Seen Possible
AP News Special
By ARTHUR MAX
Associated Press Writer
    JERUSALEM (AP) - With a year left of its term, Prime Minister
Menachem Begin's government has never been weaker. Speculation is
again rife that Begin may resign early.
    The latest blow has been the expulsion of the popular Ezer Weizman,
Begin's former defense minister, from the prime minister's Herut
Party and from the governing coalition. This reduced Begin's strength
in the Knesset, Israel's parliament, to a 60-60 split with the
opposition and the independents.
    Weizman has announced plans to challenge Begin by forming his own
party for the next election which must be held no later than November
1981.
    Begin's survival until then depends on the backing of those
independents who are not committed to toppling his government.
    ''The current situation is ungovernable,'' says coalition member
Menachem Savidor. He predicts that Begin may resign early next year if
he cannot entice some defectors to return.
    Begin's major foreign policy problem is the stalemated talks with
Egypt and the United States on self-rule in the Israeli-occupied West
Bank and Gaza Strip, envisioned as the first step in resolving the
Palestinian issue.
    However, the Iran-Iraq war and Ronald Reagan's election victory in
the United States have eased the pressure for quick results; by tacit
agreement on all sides, the self-rule talks have been put in the
freezer.
    ''If we fall, it will be over internal issues,'' says coalition whip
Haim Corfu.
    Begin has shown surprising durability in the face of previous
political crises. His coalition once numbered 78 of the 120 Knesset
members but he has managed to stay in power despite a rash of
defections, mainly over the economy.
    His closest call came earlier this month when he squeaked through a
no-confidence motion over Israel's 130 percent annual inflation rate.
The vote was 57-54.
    It was Weizman's vote against the government that led to his
expulsion from the party 3 1/2 years after he engineered its upset
election victory over the long-governing Labor Party.
    The coalition's weakness has tied Begin's hands on major
legislation. A government bill to impose a one-time surtax on the
upper classes is dying in committee. An eight-month-old proposal to
settle Jews in seminaries in the West Bank city of Hebron has
virtually been killed by another committee.
    The government's precarious position also makes it vulnerable to
demands by small splinter groups for political payoffs each time Begin
is threatened by a no-confidence motion in Parliament.
    ''If Begin quits it will be because he can't afford the blackmail of
the small factions,'' said one Knesset member.
    At the same time, however, the largest opposition party, Labor, is
torn in a bitter leadership battle between its leader, Shimon Peres,
and former Prime Minister Yitzhak Rabin.
    Peres appears headed for victory in elections for the party
convention, which will decide in December which of the two men will
stand for prime minister. But Rabin has vowed to go on fighting.
    Public opinion polls favor Labor to win the next election heavily,
but the surveys are dismissed by government supporters because they
show nearly half the electorate is undecided.
    To finish his term, Begin is counting on support by the independents
who he reckons are uncertain of their political future and have a
stake in holding off elections for as long as possible.
    Coalition leaders say they hope to coax back a three-man faction
which recently split from the Likud bloc, but no one is saying what
price the government will have to pay.
    If the government can hang on until mid-summer, it will be assured
of completing its term by the election law, which provides for a
100-day period between a prime minister's resignation and new
elections.
    If that happens, sources close to Begin say, they are looking to the
new Reagan administration for help next November.
    ''Reagan can do a lot of things to make Begin look good,'' said one
government source.
    
ap-ny-11-29 1418EST
**********

a238  1319  29 Nov 80
AM-Hostages, 1st Ld, a207,210
Eds: Tops 5 grafs to focus on Carter meeting
Precedes UNDATED
    CAMP DAVID, Md. (AP) - President Carter met Saturday with several
top officials at his Maryland mountaintop retreat to discuss
clarifications of the U.S. response to Iranian demands for release of
the 52 American hostages.
    Carter met with Deputy Secretary of State Warren Christopher, White
House Counsel Lloyd Cutler, Assistant Secretary of State Harold
Saunders, Deputy Treasury Secretary Robert Carswell, and Roberts Owen,
State Department legal adviser.
    Neither the White House nor the State Department was willing to
release any details of the meeting at Camp David.
    Christopher had traveled to Algeria earlier this month in efforts to
win the release of the hostages, who have been held in Iran since
Nov. 4, 1979. He presided over two days of talks last week at the
State Department with three Algerian intermediaries in negotiations
aimed at ending the more than year-long stalemate.
    State Department spokesman John Trattner had cautioned Thursday
against optimism in the wake of the Washington talks, although
spokesmen earlier had described the sessions as ''useful.''
    Meanwhile, Iranian government officials withheld official comment
Saturday on the fate of the American hostages and said they were
unaware of any new developments.
    Spokesmen for, 2nd graf
    
ap-ny-11-29 1619EST
**********

n060  1448  29 Nov 80
 
AM-ARABS 1stadd
NYT AMMAN: and deported.
    Another source of tension between Syria and Jordan is the fact that
they support opposing sides in the Persian Gulf war. Hussein has come
out openly and strongly in favor of Iraq, while Syria has endorsed
Iran.
    Iraq and Iran are fighting over claims to the Shatt al-Arab waterway
at the head of the Persian Gulf.
    Syria and Iraq, ruled by rival branches of the Arab Baathist Party,
have long disputed, among other things, the question of which Baath
Party would enjoy supremacy in the Arab world and which ruler would
be the dominant Arab figure.
    Still another source of tension has been the question of Palestine
and Palestinian guerrillas. Jordan has supported the Paldstine
Liberation Organization as the legitimate representative of the
Palestinians, of whom there are more than two million in this country
of three million. But Hussein refuses to give the PLO training bases
in Jordan.
    Syria has accused the king of not being committed enough to the
Palestinian cause. The PLO, at the behest of Damascus, joined Syria,
Southern Yemen, Libya, Lebanon and Algeria in boycotting the Arab
League summit here last week.
    Saturday evening, the Damascus radio charged that Hussein held a
''hostile attitude similar to that'' of President Anwar Sadat of
Egypt. Syria and the PLO condemn Sadat for having participated in the
Camp David peace accords with Israel. Their position is that these
accords, fashioned by the United States, did not take into account
adequately the central question of the Middle East crisis - the
Palestinian isssue.
    Syria has also contended that Hussein is trying to replace the PLO
as the representative of Palestinians in Middle East peace settlement
discussions with the West.
    At the summit meeting here, participants formally reaffirmed the
status of the PLO as the ''sole representative'' of the Palestinian
people, as was agreed at the Rabat summit meeting in 1974, but they
also privately gave the king blessings to explore with
President-elect Ronald Reaagan and other Western leaders ways to end
the current impasse in the Middle East peace process.
    Referring to these developments, the Damascus radio said Saturday
night:
    ''Jordan's recent movement in a bid to replace the PLO in
representing the Palestinian people was not haphazard or in favor of
the rights of the Palestinian people but in harmony with the anti-PLO
policy of the new American administration and in consonance with the
American-Zionist movement in the region.''
    
ny-1129 1751est
**********

n066  1552  29 Nov 80
 
BC-ARABS-RIFT
(Review of the Week)
By HENRY TANNER
c. 1980 N.Y. Times News Service
    DAMASCUS, Syria - The latest rift in the Arab world, consecrated by
the Syrian-led boycott of an Arab League meeting in Jordan last week
and widened by troop alerts on the Syrian-Jordanian border, is
regarded with alarm by Western diplomats in the Middle East. They see
the fragmentation as contributing to the radicalization of the area
and fear it may lead to the sort of political chaos that no foreign
power, least of all the United States, could control.
    Disarray in the Arab world, they argue, makes it more difficult to
insure the safety of Persian Gulf oil. The Gulf regimes are all
vulnerable to agitation and subversion directed by extremists who are
finding new support in Syria and Libya. While the big outside powers
can exert some control over Middle East wars through arms supplies,
their pressures and promises have little effect on the elusive,
fanatical groups feeding on the hatred between rival regimes.
    Such a group is the Moslem Brotherhood, which led a rebellion last
summer against the Syrian government. The revolt was crushed by
President Hafez Assad, who accuses Jordan of harboring the
dissidents. Last week, Syria reportedly massed more than 20,000
troops near its border with Jordan and warned that they might enter
Jordan in pursuit of fleeing Moslem terrorists. King Hussein ordered
a reciprocal alert and vowed to repulse any attack.
    Syria led Algeria, Southern Yemen, Libya, Lebanon and the Palestine
Liberation Organization in boycotting the Arab League meeting hosted
by the Jordanian monarch last week. One immediate result of the
polarization the boycott produced is the weakening of the relatively
moderate wing of the PLO and its leader, Yasir Arafat who, observers
believe, has been trying to move the organization toward a negotiated
settlement in the Middle East.
    The immediate cause of the Arab split is the Iraqi-Iranian war. But
two earlier events had shaken the Arab world even more deeply. The
fall of the Shah of Iran destroyed the military balance in the
Persian Gulf, frightening Saudi Arabia and giving Iraq its chance.
Egypt's peace with Israel took the largest and most powerful Arab
country out of the Arab lineup. Iraq's Saddam Hussein, Western
diplomats in the area say, would not have dared to make his bid to
become the ''gendarme'' of the gulf if Egypt's weight had still been
in the balance.
    In the preparatory talks before Amman, the Saudis tried hard to
prevent a showdown. In the end, the Syrian challenge was such that
they had to fall in with those supporting the summit, but this meant
that they had to step down from their usual lofty position. The
Saudis' ability to move the area toward moderation probably has been
reduced as a result. This can only hurt the interests of the
pro-Western Arabs and the United States.
    In Syria, the fear is that Saudi Arabia, Jordan and Iraq will impose
a new basic Arab strategy in which strategic considerations
concerning the Persian Gulf take precedence over the question of
Palestine. For Damascus, as for the Palestinians, the Arab-Israeli
conflict must remain the core issue in the Middle East, if only for
reasons of geography.
    Saudi Arabia started moving in a direction that the more radical
Arabs reject when it asked the United States for radar surveillance
planes. In the past, the Saudis had linked such military cooperation
to American concessions on the Palestinians.
    Nevertheless, the consensus among Western diplomats in the area is
that any policy that ignores the Palestinians has no chance in the
long run. They argue that, if unattended, the Palestinian question
will fester and infect the other Arab countries from within. There is
no Arab country without a Palestinian community that is becoming
progressively more radicalized and constitutes a potential subversive
force, Middle East specialists say.
    There have been signs that King Hussein may be edging toward
acceptance of a role in negotiating the future of the
Israeli-occupied West Bank. There had been reports that the Amman
meeting might be asked to abrogate the 1974 decision of Arab heads of
state declaring the PLO ''the sole representative of the Palestinian
people.'' The reports were used by Syria as an argument for its
boycott call. As it turned out, no new role was formally given to
Hussein, although he may have received encouragement from the
Moroccans among others.
    In the short run, a decision by Jordan to enter the peace process
would be regarded as a triumph for the United States. But Middle East
experts are convinced that the move could bear fruit only if the king
had a mandate from the other Arabs and at least tacit support from
Syria and the PLO. If he made his move at a time when the Arab world
is divided, he would put his own regime in jeopardy, said a European
diplomat, reflecting a widely held view.
    Most Western experts are also convinced that the king would have to
insist on Palestinian self-determination as a minimum demand or risk
becoming isolated and accused, with Egyptian President Anwar Sadat,
of opting for a separate peace.
    Western European diplomats urge that the new American administration
adopt a Middle East policy that would give some hope to moderate
Palestinians and thus tend to heal Arab rifts instead of deepening
them. They argue that it is not in the interest of the industrial
West to see the region that produces most of the world's oil supplies
disintegrate into a collection of radicalized cliques, in or out of
government, whose only purpose is survival.
    
ny-1129 1855est
**********

a266  1627  29 Nov 80
AM-Syria-Jordan,360
Say Jordan Threatens Syrian Security
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - Syria told the United States Saturday it
would defend its national security against neighboring Jordan
''regardless of risks or costs,'' according to official sources.
    They said U.S. Ambassador Talcott Seelye asked for a formal
explanation from the pro-Iran Syrian government of its reported
military buildup along the border with pro-Iraqi Jordan.
    The Iran-Iraq war in the Persian Gulf has sharpened Jordan's
differences with Syria recently.
    Syrian officials told Seelye that Jordan has become a ''major
training camp for anti-Syrian guerrillas'' and Syria was determined to
use ''all its means to head off this threat,'' according to the
sources.
    They did not say when or how Seelye had sought the explanation of
the Syrian buildup, which according to Western diplomats consists of
some 20,000 troops and 600 tanks.
    Jordan's King Hussein responded by moving army units and
British-made Centurion tanks to reinforce his northern garrisons.
    The government-controlled Syrian media, raising the specter of new
violence in the Mideast, said President Hafez Assad has a right to
undertake military action across the border to defend national
security.
    Government officials and newspapers claim Hussein is helping the
Moslem Brotherhood, which is outlawed in Syria, wage a campaign of
bombings and political assassinations in Syria.
    Jordan has denied supporting the fundamentalist Moslem organization
that is seeking to overthrow Syria's ruling Socialist Baath Party.
    The Carter administration said Friday Jordan is ''a friend whose
security is important to the United States.'' Israel said it was
''closely watching'' developments along the Syria-Jordan border.
    The leftist Lebanese newspaper As-Safir, which has ties to Syria,
said Iraqi President Saddam Hussein has expressed the belief that
Syria might go to war against Jordan to close Iraq's main supply
routes. Iraqi ports, all on the Shatt al-Arab waterway separating Iraq
and Iran, have been shut down by the war.
    Jordan has been allowing cargo bound for Iraq to be unloaded at
Jordan's Red Sea port of Aqaba for overland shipment to Baghdad.
    
ap-ny-11-29 1925EST
**********

a278  1726  29 Nov 80
AM-War Rdp, CORRECTION, a217,170
BEIRUT, SUBS 5 grafs for grafs 4-7 a217, to CORRECT that Karun River
flows into Shatt, not vice-versa; update with ship and air battle;
CORRECT that Fao east of Kuwait, sted west: It said two xxx days of
the war.
    It said two other Iranian vessels were sunk at the Karun River,
which flows into the 120-mile-long Shatt near the embattled Iranian
cities of Khorramshahr and Abadan.
    Tehran Radio said Iranian forces killed 10 Iraqis in the terminal
raids, set facilities on fire and sank four Iraqi missile boats and
seven gunboats.
    Iran also said it shot down two Soviet-made Iraqi jet fighters.
    Iran's 20,000-man U.S.-supplied navy has 50 vessels, including three
destroyers and four missile frigates, according to the autumn 1980
report of the London-based International Institute for Strategic
Studies. Iraq's 4,250-man Soviet-equipped navy has 48 vessels, mostly
gunboats, according to the report.
    Fao is the site of the pumping stations that push crude oil to
Iraq's terminals at Mina al-Bakr and Khor al-Amaya, roughly 12 miles
south of Fao and due east of Kuwait. The two deepwater terminals,
which have a combined capacity of 2.8 million barrels daily, have not
been in operation since the early days of the war.
    Iraq did not, 8th graf
    
ap-ny-11-29 2026EST
**********

n501  1806  29 Nov 80
 
BC-SKED-11-30
    GOOD EVENING:
    The FIELD NEWS SERVICE daily report will resume following this
budget. The editors may be phoned at 312-321-2801.
    
    
    SUNDAY, NOV. 30, 1980
    
    
    INTERNATIONAL
    
    TEL AVIV (Bushinsky - Sun-Times - RABIN) - Yitzhak Rabin must win
his libel suit against the French weekly L'Express in order to have a
chance to become the next Israeli prime minister. If he wins the
suit, he still faces a bitter intraparty fight with his principal
rival, Shimon Peres. (750) FNSPM
    
    TEL AVIV (Bushinsky - Sun-Times - TERROR) - A wave of terror seems
to be seems to be gripping the occupied Gaza Strip, reportedly due to
the presence there of an assassination squad out to liquidate local
Palestinians who cooperate with Israel or favor the peace treaty with
Egypt. (700) FNSPM
    
    BEIRUT (Bulloch - Telegraph - SYRIA) - Syria's blunt warning of a
possible attack on Jordan comes in the wake of a huge buildup of
forces along the border, and continued complaints about Jordan
allegedly training Moslem Brotherhood guerrillas. (500) FNSPM
    
    BAHRAIN (Copps - Telegraph - IRAN) - Iran has the initiative on the
southern front of the gulf war for the first time, says Iranian
President Abolhassan Bani-Sadr, following Iranian claims of a major
naval victory he called as important psychologically as it was
militarily. (450) FNSPM
    
    MOSCOW (Wade - Telegraph - SUICIDE) - The Soviet Union has put
forward the fantastic claim that the mass suicide of 914 followers of
the ''Peoples Temple'' sect in the jungles of Guyana two years ago
was ''a graphic illustration of the tragic fate of dissidents in the
U.S.A.'' (300) FNSPM
    
    
    DOMESTIC
    
    WASHINGTON (Nordlinger - Baltimore Sun - RULES) - A host of
regulations are pending on subjects such as lawn-mower safety,
smoking on airplanes, water and air pollution, the proper use of
common prescription drugs, and sex discrimination in schools. The
economic health of several major industries will be in Ronald
Reagan's hands as he begins to deal with these regulatory questions.
(1,300) FNSPM
    
    
    ARTS & ENTERTAINMENT
    
    NEW YORK (Temin - Boston Globe - NUREYEV) - At age 42, ballet star
Rudolf Nureyev believes he is dancing better than ever before, and
the critics agree. (1,700) FNSPM
    
    UNDATED (Erlandson - Baltimore Sun - MISTRESS) - The English
gentleman's mistress is an endangered species for many reasons, among
them income tax laws that allow no deduction for a bit of houskeeping
on the side, says Douglas Sutherland, author of ''The English
Gentleman's Mistress.'' (1,150) FNSPM
    
    
ny-1129 2109est
**********

n504  1831  29 Nov 80
 
BC-SYRIA-11-30
    EDITORS: The following is from the London Telegraph and is for use
only in the United States and Canada.
    By John Bulloch
    Daily Telegraph, London (Field News Service)
    BEIRUT-Syria's blunt warning of a possible attack on Jordan comes in
the wake of a huge buildup of forces along the border. Intelligence
reports say that at least 200 Syrian tanks and 20,000 troops have now
been deployed. Jordan has responded by mobilizing its own forces in
the border region.
    Syria warned Saturday that it might have to attack Jordan, as war
fever was whipped up in Damascus. A front-page editorial in the
Syrian government's official newspaper said the Damascus government
had the right to protect its own security ''in any place and by any
means.''
    Saturday's editorial in al Thawra said Jordan had become a training
ground for ''gangs of murderers, killers and saboteurs.'' Syria
blames Jordan for harboring members of the Moslem Brotherhood, the
extremist religious group which has been leading the internal revolt
against President Hafez Assad in Syria. The paper said the
''murderers and saboteurs'' were trained in Jordan by King Hussein's
officers, ''then sent on his personal instructions to carry out
terrorism in Syria.''
    Syrian officials Saturday for the first time warned openly that, for
the security of the country, there would have to be attacks on Moslem
Brotherhood camps they said had been set up inside Jordan.
    They refused to discuss the military buildup along the border, which
was confirmed by travellers and by American satellite pictures, but
in telephone interviews said they might strike Jordan at any moment.
''The chance of mediation by anyone else is almost nil,'' one said.
    Syria has been wracked by internal strife for more than a year, with
the unacknowledged rebellion centering on the northern city of
Aleppo. Syrian special forces were several times sent into the old
town there to search for Moslem Brotherhood guerrillas, but failed to
crush the insurrection.
    Lately, however, the Syrians have been reporting more successes.
This followed a ''gloves off'' directive from President Assad
himself, who authorized his troops to shoot on sight. There have also
been reports of summary executions.
    The Syrian military buildup, which reached its peak as the Arab
summit conference was being held in Jordan, was at first seen as a
saber-rattling exercise designed to distract attention from the Amman
meeting. Syria and the other radical states boycotted the conference.
    Now the official line in Damascus seems to be a deliberate
preparation for war. If the threats are carried out, then Iraq would
certainly support Jordan, and pressure might be eased on Tehran,
which is backed by Syria. It would also be difficult for Israel to
stay aloof, so that the danger of a general conflict is contained in
Syria's sudden quarrel with Jordan. Only a month ago, President Assad
concluded a treaty with the Soviet Union.
    ENDIT BULLOCH
    
ny-1129 2133est
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n505  1837  29 Nov 80
 
BC-IRAN-11-30
    EDITORS: The following is from the London Telegraph and is for use
only in the United States and Canada.
    By Alan Copps
    Daily Telegraph, London (Field News Service)
    BAHRAIN-Iran has the initiative on the southern front of the gulf
war for the first time, says Iranian President Abolhassan Bani-Sadr,
following Iranian claims of a major naval victory he called as
important psychologically as it was militarily.
    Bani-Sadr was returning to Tehran Saturday after an eight-hour tour
of front-line positions in Khorramshahr and Abadan when he was told
of the victory, said the official Pars news agency.
    It said that seven Iraqi gun boats had been destroyed in a combined
naval and air assault on two oil platforms in the northern gulf.
Three Iraqi MiG fighters had also been shot down, a further two Iraqi
boats had been destroyed in the disputed Shatt-al-Arab waterway.
     There was no independent confirmation of the naval engagement and
Iraqi communiques did not mention the gunboat losses. They did,
however, claim that two Iranian boats had been destroyed on the Karun
River.
    Bani-Sadr said after his tour, ''As our military situation on
various fronts has much improved, our hope of victory has also
increased significantly.''
    He said that Iranian commanders on the southern front had told him
that it would not be difficult for them to recapture Khorramshahr,
which Iraqi troops almost overran early in the nine-week war.
However, he admitted that it might be difficult to hold Khorramshahr
once it was retaken. At present, the two sides face each other across
the River Karun, in Khorramshahr.
    His tour was a major propaganda boost for the Iranians. At one time,
he was said to have braved an artillery barrage to make a visit by
motorcycle to troops only 200 yards from Iraqi lines. He was also
said to have talked to troops in Abadan, site of the Middle East's
largest oil refinery, which Iraq claims has been surrounded since
early in the war.
    On a visit to the front further north earlier in the week, Bani-Sadr
said that Iran was ''near to forcing Iraq to concede defeat.''
    However, neutral observers felt this was an optimistic view, as
Iraqi troops have built flood defenses and all-weather roads to their
positions, clearly expecting a long stay on Iranian territory.
    Iraqi communiques in the past week have been mainly confined to
terse statements of enemy numbers killed and tanks destroyed. The
last said that more than 20 Iranians had been killed when
counter-attacks were repulsed.
    However, Iraq gained two considerable points in the propaganda war,
first by re-opening its oil pipeline through Turkey to the
Mediterranean and then by winning the support of the Arab summit
conference in Amman.
    ENDIT COPPS
    
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n514  1946  29 Nov 80
 
BC-IRAQ-2takes-11-30
    By Douglas Watson
    (c) 1980, The Baltimore Sun (Field News Service)
    BAGHDAD-The foreign correspondents who have come here to cover the
war-but have been prevented from getting anywhere close to it-have
discovered what residents here have long experienced: Iraq is a very
restrictive country.
    It is the kind of place where a journalist requesting a military
briefing to review Iraq's war with Iran instead will be taken to the
Foreign Ministry to receive a recitation of Iraq's grievances from an
official who never wavers from the ruling Baathist Party's line.
    Western diplomats here say that most likely the entire conversation
in the Foreign Ministry office was being bugged, with the official's
knowledge, to discourage him from straying toward frankness.
    This also is a place where a reporter can ask about the head of the
Iraqi News Agency, whom he met on a previous trip, receive a strange
look, then be told, ''He got 10 years in prison.''
    ''It is like Eastern Europe. In fact the East Germans have helped
set up a lot of the surveillance systems here,'' a diplomat said.
    The dozen or so American diplomats here are especially isolated
because the United States and Iraq have not had full diplomatic
relations since the 1967 Arab-Israeli war, and the U.S. maintains
only a small ''interest section'' in Baghdad. Only
government-approved Iraqis dare attend American parties, for example.
    But even diplomats and businessmen from other Arab countries
complain privately of the unapproachability of most Iraqis.
    The reason for such silencing fear is the nature of this police
state, one which is making rapid advances in economic development,
but which rules with ruthlessness.
    Shortly after Iraqi President Saddam Hussein eased the ailing former
president, Ahmed Hassan al Bakr, into retirement last year, he
ordered a purge in which 21 suspects were executed, 5 of them his
colleagues on the ruling Revolutionary Command Council, including a
Hussein confidant who made the mistake of suggesting that an election
be held.
    Last spring, after an assassination attempt on Tariq Aziz, Iraq's
deputy prime minister, 40,000 Iraqi residents of Iranian origin were
summarily forced into trucks and dumped across the border because the
regime here suspected they included supporters of Iran's Ayatollah
Ruhollah Khomeini.
    Once when President Hussein made an appearance in Iraq's rebellious
Kurdistan area, a teen-aged youth in the crowd was foolish enough to
call out for ''a free Kurdistan.'' He was hanged the next day,
according to a diplomat here.
    There are tens of thousands of informers in this country who
regularly report to the authorities any suspected deviations by
fellow Iraqis. So Baghdad residents have learned to keep their mouths
shut and not to be seen with foreigners, who may not travel very far
outside this capital without official permission.
    This fear by Iraqis of speaking frankly to strangers makes Iraq one
of the most difficult countries for foreign correspondents to fathom.
    It is not the same problem as in Egypt, where the people are sweet,
but hardly anything seems to work as it should, especially the
telephone. Nor is it the same challenge as in Algeria, which is
mainly that caused by the xenophobic sourness of the Algerians.
    Nor is it the same as in Iran. Many correspondents have found
reporting from Tehran, despite the rabid anti-Americanism of the
regime there, easier than trying to be a journalist in Iraq.
    In Iran, unlike here, there are many people who had worked with
Americans and still like them. And many more people speak English.
    Iraq is not an especially dangerous place for correspondents. Just
crossing the street in Lebanon's capital of Beirut would be more
risky.
    The crowds here are so disciplined that even jay walking is rare, so
there are no derisive shouts at strangers. But neither are there many
smiles.
    A United Press International photographer found himself briefly
under arrest here last week for taking a picture of a sleeping
beggar. The Iraqis said defensively that, like most of his
countrymen, the beggar gets a government stipend.
    Foreign correspondents here have been required to present everything
filed by Telex to censors, whose restrictions are at times hard to
understand. One said that President Hussein could not be called a
''strong man,'' because that implied there may be stronger men.
    Another insisted that a report should say enemy mortars were fired
by snipers.
    Some correspondents here, though not this one, have been bothered by
unrealistic requests from editors who have no idea of operating
conditions in Iraq.
    (MORE)
    
ny-1129 2249est
**********

n515  1952  29 Nov 80
 
BC-IRAQ-1stadd-11-30
    X X X CONDITIONS IN IRAQ.
    Some editors have asked for the real story on Iraq's super-secret
nuclear facility-this in a country with no free press and where
authorities are too timid even to announce good news, such as the
recent reopening of Iraq's oil pipeline to Turkey.
    At the start of the war with Iran, correspondents often were able to
get to the front merely by telling a taxi driver to take them there.
Now the Iraqis are better organized and all correspondents wanting to
cover the war must wait in Baghdad and hope they will be invited on
an official excursion to the front.
    There have been correspondents here for more than a month who have
only been allowed into the war zone on four days. No correspondents
have been allowed to the front in the last two weeks and no trips are
scheduled there in the near future.
    The Iraqis say the reporters have already seen everything. What they
do not say is that, with the war bogged down in a prolonged
stalemate, Iraq has no newly conquered cities to show the press.
    The foreign correspondents have been largely confined to the
ostentatious and very overpriced Al Mansour Melia hotel, which one
called, ''The home of the living dead.'' Iraqi taxi drivers are
reluctant to enter the hotel's driveway because of all the guards at
the gate.
    The correspondents have been forced to provide their own
entertainment to maintain some sanity during weeks of waiting. There
have been foot races.
    And some television crew men filmed themselves in a rather ribald
take-off on the hazards of being a war correspondent.
    The gunfire in the short film had to be dubbed.
    ENDIT WATSON
    
ny-1129 2253est
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a004  0023  30 Nov 80
BC-Iran Chronology, 39th add,160
UNDATED: negative response.''
    Day 386, Nov. 23 - Iran asks the United States for further
clarification of its response on the hostages.
    Day 387, Nov. 24 - Muskie says he sees no short-term solution to the
hostage question.
    Day 388, Nov. 25 - Parliament speaker Rafsanjani says Iran is
discussing with the Algerians ways the United States may meet Tehran's
terms for releasing the hostages.
    Day 389. Nov. 26 - Algerian intermediaries confer with the State
Department in Washington on Iran's latest message.
    Day 390, Nov. 27 - The hostages spend their second Thanksgiving in
captivity. Iranian sources say preparations have been stepped up for
the transfer of the Americans to the Iranian government.
    Day 391, Nov. 28 - Reports that the hostages have been transferred
to Iranian government custody are denied in Tehran.
    Day 392, Nov. 29 - President Carter meets with his top officials at
Camp David, Md., to discuss clarification of the U.S. response to
Iran's release demands.
    
ap-ny-11-30 0323EST
**********

a005  0026  30 Nov 80
BC-Iran Week By Week, 17th add,70
UNDATED: negative response.''
    Week 56, Nov. 23-29 - The hostages spend their second Thanksgiving
in custody in Iran. In diplomatic developments, Iran asks the United
States for further clarification of its response on the hostages and
Algerian intermediaries later confer with U.S. State Department
officials on the Iranian request. At week's end President Carter meets
with his top officials at Camp David, Md., to discuss the
clarification requested by Tehran.
    
ap-ny-11-30 0325EST
**********

a006  0034  30 Nov 80
BC-Iran Dates, 2 Takes,470-1,090
By The Associated Press
    Here are important dates in the Iran hostage crisis:
    Nov. 4 - Iranian militants seize the U.S. Embassy and take 98
persons hostage, demanding that the United States send the deposed
shah back to Iran.
    Nov. 6 - The Iranian government of Premier Mehdi Bazargan resigns.
    Nov. 9 - The United Nations Security Council calls on the militants
to release the hostages.
    Nov. 12 - President Carter orders a halt to oil imports from Iran.
    Nov. 14 - Carter orders the freezing of all Iranian assets in the
United States.
    Nov. 19-20 - Thirteen American hostages - five women and eight black
men - are released.
    Nov. 29 - The United States asks the International Court at The
Hague, Netherlands, for a ruling against Iran.
    Dec. 4 - The U.N. Security Council votes unanimously to urge Iran to
free the hostages.
    Dec. 12 - The U.S. State Department orders the expulsion of 183
Iranian diplomats.
    Dec. 15 - The shah flies to a ''temporary'' exile in Panama and the
International Court orders Iran to free the hostages.
    Dec. 25 - Three U.S. clergymen conduct Christmas services for the
hostages.
    Dec. 27 - Soviet troops pour into neighboring Afghanistan after
President Hafizullah Amin is overthrown and slain.
    Dec. 31 - The U.N. Security Council adopts a resolution calling on
Iran to free the hostages by Jan. 7 or face possible sanctions.
    Jan. 1 - U.N. Secretary-General Kurt Waldheim arrives in Iran,
hoping to negotiate the hostages' release, but is rebuffed.
    Jan. 13 - The Security Council votes to impose sanctions against
Iran but the Soviet Union vetos the resolution.
    Jan. 20 - Waldheim says he has a formula to resolve the crisis.
    Jan. 25 - Abolhassan Bani-Sadr is elected president of Iran.
    Jan. 29 - It is disclosed that the Canadian Embassy in Tehran
spirited six Americans out of Iran.
    Feb. 3 - Iran agrees to an international commission to investigate
Iran's charges against the shah and the United States.
    Feb. 13 - Carter says he favors a U.N. commission to look into
Iran's charges.
    Feb. 20 - Waldheim announces a U.N. commission and says it will go
to Tehran in an effort to resolve the crisis.
    March 3 - Iran's ruling Revolutionary Council approves a visit to
the hostages by the U.N. commission.
    March 4 - The militants holding the hostages balk at any such visit.
    March 6 - The militants say they will turn the hostages over to the
Iranian government.
    March 8 - In a dispute with the Bani-Sadr government, the militants
refuse to turn the hostages over.
    March 10 - Ayatollah Ruhollah Khomeini sides with the militants,
saying the hostages must remain in their hands.
    March 11 - The U.N. commission leaves Iran without giving a report
on its investigation.
MORE
    
ap-ny-11-30 0334EST
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a007  0048  30 Nov 80
BC-Iran Dates, 1st add,750
UNDATED: its investigation.
    March 14 - The first of two rounds of voting is held for Iran's new
parliament which officials say will decide the fate of the hostages.
    March 22 - An attorney representing Iran says in Panama he plans to
start proceedings for the extradition of the shah.
    MARCH  1/4 3/8 - The shah flies to Egypt to undergo an operation for the
removal of his spleen.
    April 1 - Bani-Sadr offers to take custody of the hostages and
Carter calls this a ''positive development.''
    April 6 - American clergymen conduct Easter services for the
hostages.
    April 7 - Khomeini again rules the hostages must remain in the
custody of the militants, rebuffing Bani-Sadr. The United States
breaks diplomatic relations with Iran and imposes economic sanctions.
    April 17 - Carter imposes additional economic sanctions against Iran
and indicates the next step may be military action.
    April 25 - A U.S. military operation to free to hostages is aborted
because of helicopter failure. Eight U.S. servicemen are killed in
the collision of a C-130 transport plane and a helicopter inside Iran.
    April 26 - Iran says the hostages have been moved from the U.S.
Embassy in Tehran to other parts of the city and country.
    April 28 - Secretary of State Cyrus R. Vance resigns in protest of
the U.S. rescue mission and is succeeded later by Sen. Edmund S.
Muskie.
    April 30 - Men identified as Iranian Arabs seize Iran's embassy in
London and take more than a score of persons hostage, demanding the
release of 91 political prisoners they claim are held in Iran.
    May 5 - British commandos storm Iranian Embassy in London, ending a
six-day terrorist occupation after the gunmen killed two of their
hostages.
    May 9 - Iranians vote in run-off election for a parliament that is
empowered to decide the fate of the American hostages.
    May 24 - In a unanimous ruling, the World Court at The Hague calls
for release of the hostages and in a split decision says Iran should
compensate the United States for the seizure. Iran dismisses the
ruling.
    May 28 - Iran's new parliament convenes but takes no immediate
action on the hostage question.
    July 10 - Khomeini orders the release of hostage Richard Queen, a
28-year-old vice consul, because of an illness which later is
diagnosed as multiple sclerosis. The Islamic regime claims it has
crushed a U.S.-backed plot to overthrow the government and bomb
Khomeini's home.
    July 27 - The shah dies in Cairo. U.S. officials express doubt his
death will lead to a speedy release of the hostages.
    July 29 - After a state funeral attended by former President Richard
M. Nixon in an unofficial capacity, the shah is buried in a Cairo
mosque.
    Sept. 12 - Khomeini lists four conditions for the hostages' release:
return of the late shah's wealth, cancellation of U.S. claims against
Iran, unfreezing of Iranian funds in the United States and a
guarantee of no U.S. interference in Iran.
    Sept. 17 - Following months of border skirmishes, Iraq abrogates its
1975 border agreement with Iran.
    Sept. 22 - Iraq and Iran border hostilities become a full-scale war,
with air attacks on Tehran and Baghdad and Iraqi thrusts into Iran.
    Oct. 17 - Prime Minister Mohammad Ali Rajai of Iran, speaking before
the U.N. Security Council in New York, accuses the United States of
helping Iraq in the war, seeing ''an opportunity,'' he says, for
getting the hostages released.
    Oct. 18 - Rajai tells a New York news conference he believes the
United States, ''in practice,'' has apologized for its previous
support of the shah and that an Iranian decision on the hostages issue
is ''not far away.''
    Oct. 26 - The Majlis, Iran's parliament, begins its long-awaited
debate on the hostage issue.
    Oct. 31 - Radio Tehran says Iran has been victorious in the hostage
issue and adds that a ''just method'' has been worked out for
releasing the Americans.
    Nov. 2 - The Majlis votes to release the hostages if the United
States accepts four conditions set down by Khomeini.
    Nov. 4 - The hostages mark the first anniversary date of their
seizure. Ronald Reagan is elected president in an electoral-vote
landslide.
    Nov. 10 - The United States delivers its response to Iran's four
conditions for release of the hostages to Algeria, acting as
intermediary in the negotiatons.
    Nov. 23 - Iran asks for further clarification of the U.S. response.
    Nov. 27 - The hostages spend their second Thanksgiving in captivity.
    
ap-ny-11-30 0348EST
**********

a008  0106  30 Nov 80
BC-War Rdp,150
Iran Claims Victory At Sea
    BEIRUT, Lebanon (AP) - Iran claimed its naval commandos captured
Iraq's Al-Bakr oil pipeline terminal at the northwestern tip of the
Persian Gulf Sunday, winning the biggest sea battle of the 70-day-old
war.
    The Iranian command said in a communique broadcast by Tehran Radio
that four Soviet-made Iraqi missile boats and seven other gunboats
were sunk in the clash, with one Iranian gunboat sustaining heavy
damage.
    The communique claimed 20 Iraqi sailors were rescued from the sea
and taken prisoner while the flag of Iran was hoisted over Al-Bakr.
    Iraq did not comment on Iran's claim.
    The latest communique from the Iraqi command said Saturday the two
nations' navies were locked in the heaviest sea battle of the war,
with jet fighters dueling overhead.
    Iraq claimed three US-made Iranian warships were destroyed and three
fighter bombers shot down in the clash for Al-Bakr.
    
ap-ny-11-30 0406EST
**********

a009  0236  30 Nov 80
BC-War Rdp, 1st Ld-Writethru, a008,180
Iran Claims Victory At Sea
Eds: Iraq denies Iran victory claim, edits and updates throughout
    BEIRUT, Lebanon (AP) - Iran claimed its naval commandos captured
Iraq's Al-Bakr oil pipeline terminal at the northwestern tip of the
Persian Gulf Sunday, winning the biggest sea battle of the 70-day-old
war.
    Iraq denied the terminal had fallen, saying its forces repulsed the
Iranian attack.
    The Iranian command said in a communique broadcast by Tehran Radio
that four Soviet-made Iraqi missile boats and seven other gunboats
were sunk in the clash, with one Iranian gunboat sustaining heavy
damage.
    The communique claimed 20 Iraqi sailors were rescued from the sea
and taken prisoner while the flag of Iran was hoisted over Al-Bakr.
    In Baghdad on Sunday, Iraqi officials claimed their forces destroyed
three U.S.-made Iranian warships, three fighter bombers and two
helicopters in repulsing the attack.
    Iraqi military communiques have said the two nations' navies were
locked in the heaviest sea battle of the war, with jet fighters
dueling overhead.
    
ap-ny-11-30 0536EST
**********

n580  0457  30 Nov 80
 
BC-SUMMARY-4TAKES-11-30
    EDITORS:
     Following is a complete summary of today's FIELD NEWS SERVICE
report. The editors may be phoned at (312) 321 2801.
    
    
    SUNDAY, NOV. 30, 1980
    
    
    BEHIND THE TOP HEADLINES
    
     UNDATED (Seiden - Baltimore Sun - 1MATT, 2MATT, 3MATT) - COMMENTARY
feature: The Peace Corps was one of the few tangible, institutional
parts of John Kennedy's legacy to the world, and Brazil was one of
its most ambitious projects. Now the Peace Corps is being quietly
kicked out of Brazil. The expulsion coincides, ironically, with the
Peace Corps' 20th anniversary. For Baltimore Sun columnist Matt
Seiden-who was a Peace Corps volunteer in Brazil 11 years ago-it
seemed a particularly fitting time to go back, to find out what has
changed and what has not changed in Brazil, and to ask what, if
anything, the Peace Corps accomplished. We commend these three
columns to your attention. (950), (1,050), (1,500) FNSPM
    
     CHICAGO (Koshner - Sun-Times - BOOKBAN) - Attempts to ban books,
especially books used in public schools, are nothing new. What is new
is the increase in the numbers, and the mood of the country, which,
according to some, is giving these attempts a better chance at
succeeding. PHOTOS AVAILABLE-see note on story. WARSAW and LIST are
sidebars with this story, listed under DOMESTIC. (1,500) FNSPM
    
     UNDATED (Larson - Sun-Times - POPE) - AN ANALYSIS: In ''the year of
the leer,'' it is clear that Pope John Paul II has been attempting to
spell out a ''theology of the body'' that avoids the polar extremes
of puritan severity and modern permissiveness. Here are some key
themes that provide clues to his thinking that has so far attracted
more heat than light. (1,450) FNSPM
    
    
    INTERNATIONAL
    
     TEL AVIV (Bushinsky - Sun-Times - RABIN) - Yitzhak Rabin must win
his libel suit against the French weekly L'Express in order to have a
chance to become the next Israeli prime minister. If he wins the
suit, he still faces a bitter intraparty fight with his principal
rival, Shimon Peres. (750) FNSPM
    
     TEL AVIV (Bushinsky - Sun-Times - TERROR) - A wave of terror seems
to be gripping the occupied Gaza Strip, reportedly because of the
presence there of an assassination squad out to liquidate local
Palestinians who cooperate with Israel or favor the peace treaty with
Egypt. (700) FNSPM
    
     BEIRUT (Bulloch - Telegraph - SYRIA) - Syria's blunt warning of a
possible attack on Jordan comes in the wake of a huge buildup of
forces along the border, and continued complaints about Jordan
allegedly training Moslem Brotherhood guerrillas. (500) FNSPM
    
     BAHRAIN (Copps - Telegraph - IRAN) - Iran has the initiative on the
southern front of the Gulf war for the first time, says Iranian
President Abolhassan Bani-Sadr, following Iranian claims of a major
naval victory he called as important psychologically as it was
militarily. (450) FNSPM
    
     BAGHDAD (Watson - Baltimore Sun - IRAQ) - The foreign
correspondents who have come to Baghdad to cover the war-but have
been prevented from getting anywhere close to it-have discovered what
residents there have long experienced: Iraq is a very restrictive
country. (1,150) FNSPM
    
     ANKARA (Borowiec - Sun-Times - TURK) - Although the military regime
that seized power in Turkey last Sept. 12, as the country tottered
toward civil war, has succeeded in stopping the tide of political
violence, the economic picture continues to be bleak. (900) FNSPM
    
     PEKING (Martin - Baltimore Sun - GANG) - If radical Maoist remnants
are lying low and awaiting a comeback opportunity-as China's official
press says they are-the current show trial of the ''Gang of Four''
may be providing a suitable martyr to keep their revolutionary
passions hot. He is former Vice Premier Zhang Chunqiao, fervent
Maoist and charter ''Gang'' member. (1,450) FNSPM
    
     MOSCOW (Wade - Telegraph - SUICIDE) - The Soviet Union has put
forward the fantastic claim that the mass suicide of 914 followers of
the Peoples Temple sect in the jungles of Guyana two years ago was
''a graphic illustration of the tragic fate of dissidents in the
U.S.A.'' (300) FNSPM
    (MORE)
    
ny-1130 0800est
**********

a218  1150  30 Nov 80
AM-War Rdp, Bjt,600
Iran Claims Capture of Oil Terminal, but Iraq Denies It
By FAROUK NASSER
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran claimed its commandos captured Iraq's
Mina al-Bakr oil terminal Sunday in the biggest sea battle of the
Persian Gulf war, but Iraq denied the Iranian victory and said it
repulsed the attack.
    Iran said its marine forces overran the giant Iraqi oil shipping
port at the northwestern edge of the gulf and hoisted the red, white
and green-striped flag of the Islamic Republic of Iran ''at the
highest point'' of a derrick at the facility.
    Iraq said the Iranians were repulsed with a loss of three of their
U.S.-made Phantom fighter-bombers and three warships in the
10-week-old war's heaviest sea clash.
    Iran, also calling it the heaviest sea battle in the war, claimed
the Iranian navy sank four Soviet-made Iraqi missile boats and seven
other gunboats.
    Iran said only one of its gunboats sustained heavy damage in the
two-day battle, which began Friday with Iranian raids on Mina al-Bakr
and the Iraqi port of Fao at the mouth of the Shatt al-Arab waterway,
according to Tehran radio.
    Fao, Iraq's main Persian Gulf terminal, is the site of pumping
stations that push crude oil to Iraq's terminals at Mina al-Bakr and
Khor al-Amaya, 12 miles south of Fao and due east of Kuwait. The two
deepwater terminals, with a combined capacity of 2.8 million barrels
daily, have not been in operation since the early days of the war.
    The Iranian communique said 20 Iraqi sailors were rescued from
sunken warships in the battle at Mina al-Bakr and taken prisoner. The
Iraqi denial statement said Iraq's navy and air force teamed
successfully in repulsing the Iranian assault.
    Iran's 20,000-man U.S.-supplied navy has 50 vessels, including three
destroyers and four missile frigates, according to the autumn 1980
report of the London-based International Institute for Strategic
Studies. Iraq's 4,250-man Soviet-equipped navy has 48 vessels, mostly
gunboats, according to the report.
    A midday communique from the Iraqi defense command in Baghdad
claimed 33 Iranian troops were killed and 17 Iraqi ''martyrs'' in
ground operations along the 300-mile-battlefront in Iran's oil-rich
Khuzistan province, the main theater in the war which began Sept. 22
after months of border clashes.
    Shortly before the war erupted, Iraqi President Saddam Hussein
abrogated a 1975 treaty that put the Iraq-Iran border midstream in the
Shatt al-Arab estuary and demanded Iranian recognition of Iraqi
sovereignty over the waterway. Iran refused to comply and vowed to
fight on.
    The pro-Syrian Lebanese newspaper As-Safir, meanwhile, reported that
Syria has agreed to allow Iraq to resume exporting oil through a
550-mile pipeline that could move 1.2 million barrels a day from
Iraq's Kirkuk oilfields to Mediterranean terminals in Syria and
Lebanon. Iraq stopped using the Syrian connection in 1976 to protest
Syria's intervention in Lebanon to break up the 1975-1976 Lebanese
civil war.
    The newspaper said the line's facilities were being readied on
direct orders from Syrian President Hafez Assad. Tanker-loading
operations were expected to begin in Syria's oil-shipping harbor of
Banias in a few days, it said.
    There was no immediate comment from Syrian or Iranian authorities.
    
ap-ny-11-30 1450EST
**********

a231  1313  30 Nov 80
AM-Reagan-Cabinet,390
With AM-Reagan
Meese Sees $620 Billion Budget as Realistic
    WASHINGTON (AP) - President-elect Ronald Reagan's transition chief
said Sunday that a $620 billion budget for fiscal 1981 is a
''realistic target'' despite predictions that stringent cuts would be
needed.
    Edwin Meese III, who will become White House counselor in the new
administration, also said Reagan has made some ''definite decisions''
on his Cabinet choices and hopes to ''mesh'' his Cabinet and White
House staff to avoid ''warring'' between the two groups.
    Meese said $620 billion in spending for fiscal 1981 is ''a better
number to shoot for'' than the $630 billion suggested by Rep. Jack
Kemp, a conservative Republican from New York who is close to Reagan.
    A Reagan economic adviser, former Budget Director Caspar Weinberger,
said last week that the president-elect's $620-billion goal could be
adhered to, but Kemp then said it would require very deep cuts.
    Reagan's budget figure was formulated when it was predicted federal
spending would total $633 billion, but congressional experts have
since said spending might total as much as $650 billion.
    Meese said in a broadcast interview that the object was ''to not
have what has characterized too many administrations, and that is a
White House staff on the one hand and a Cabinet on the other, which
seem to be warring with each other instead of working together.''
    Reagan ''wants to mesh the White House operation and the Cabinet
into one management team,'' Meese said.
    Meese noted that the specific details of how the White House and
Cabinet will work have yet to be worked out, adding: ''One of the
things the president would like to do is talk to the Cabinet members
themselves and to bring them even into the process of formulating how
best to run the government.''
    The longtime Reagan adviser also made these points in the interview
on the ABC News program ''Issues and Answers'':
    -The president-elect does not have ''any specific plan or some
secret plan'' to gain release of the U.S. hostages in Iran. But he is
considering ''a number of options'' should they still be in captivity
when he takes office.
    -Reagan has made no decisions on stationing U.S. troops in the
Middle East.
    -''It's certainly possible'' that talks leading to negotiations for
a new SALT treaty with the Soviets could begin within weeks of
Reagan's inauguration.
    
ap-ny-11-30 1613EST
**********

a233  1331  30 Nov 80
AM-Jordan-Syria,500
Eds: NOTE Israeli military censors made some changes in the
information from Tel Aviv, graf 9.
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan (AP) - Jordan has called up reservists and mobilized
its civil defense as ''precautionary measures'' in response to a
buildup of Syrian troops along its borders, a highly placed Jordanian
source said Sunday.
    The source said Jordan also has tightened airport and border
security and is stockpiling fuel.
    ''These are strictly precautionary measures, and we have no
intention whatsoever of pre-empting the Syrians, who have been massing
a sizeable force and hundreds of tanks near our border,'' said the
source, who asked not to be identified by name.
    ''The whole situation, to us, is nothing but muscle-flexing by the
Syrians who think they can intimidate Jordan,'' he added.
    Western diplomats say Syria has massed 25,000 troops and 600 tanks
on Jordan's northern border and Jordan responded with its own buildup.
    It was reported Saturday by official sources in Damascus that U.S.
Ambassador Talcott Seelye sought a Syrian explanation for the troop
buildup and was told that it was due to Jordanian training of
anti-Syrian guerrillas.
    The Syrians claim Jordan is aiding guerrillas of the Moslem
Brotherhood, a fundamentalist organization outlawed in Syria and which
the Syrians blame for a 16-month campaign of bombings and political
assassinations aimed at overthrowing the 10-year-old, Soviet-backed
regime of President Hafez Assad.
    The two countries also differ on the Iran-Iraq war. Syria backs
Iran, although Iran is Persian and not an Arab country. Jordan backs
Iraq. The Syrians blame Iraq for starting the war and say the fighting
diverts attention from the Arab-Israeli conflict.
    In Tel Aviv, Israel's military chief of staff Lt. Gen. Rafael Eytan
suggested Sunday that an outbreak of war between Syria and Jordan
would be to Israel's advantage. ''The deeper the disunity in the Arab
world, the more advantageous it is to Israel,'' he said in answer to
questions from an audience in southern Israel.
    In Amman, one source close to the Jordanian government said ''The
Syrians want to weaken Iraq by attacking Jordan.''
    Meanwhile, Saudi Arabia's King Khaled sent Prince Abdulla Bin
Abdul-Aziz, the oil kingdom's second deputy prime minister and
comander of the national guards corps, to Syria and Jordan in a
mediation attempt.
    Syrian officials said the prince met for three hours in Damascus
with President Assad, who Palestinian sources said also met with
Palestine Liberation Organization chief Yasser Arafat.
    The Syrian officials said the Saudi official planned to meet with
Assad again Monday before departing for Amman but declined to give
details of the talks.
    Saudi state radio said Abdulla carried messages from King Khaled to
Assad and Jordan's King Hussein urging both leaders to exercise
retraint and seek a negotiated settlement of their dispute.
    U.S. State Department spokesman John Trattner said last week that
the United States considered pro-West Jordan ''a friend whose security
is important to us.''
    
ap-ny-11-30 1630EST
**********

n050  1419  30 Nov 80
 
AM-IRAQ
Iran Claims, and Iraq Denies, Capture of Key Iraqi Oil Terminal
By YOUSSEF M. IBRAHIM
c. 1980 N.Y. Times News Service
    BAGHDAD, Iraq - Iran claimed Sunday that its commando troops have
captured the Iraqi offshore oil loading terminal of Mina al-Bakr
after a battle that has raged over the past 48 hours in the northern
tip of the Persian Gulf.
    The Iranian announcement was made by the official news agency PARS.
    But Iraqi officials here denied the loss of Mina al-Bakr and
described the Iranian statement as totally false.
    Both countries, however, confirmed that the battle for Mina al-Bakr,
which appears to be continuing, is one of the larger engagements in
the war during the past two months.
    Mina al-Bakr is a highly strategic oil loading station, Iraq's
largest outlet for the export of oil, and one of the largest such
facilities in the Persian Gulf.
    Although it has been repeatedly bombed by Iranian war planes and
naval vessels, its capture by the Iranians could guarantee its
destruction. It would take years and hundreds of millions of dollars
to repair the terminal if Iranian commandos systematically sabotaged
its equipment.
    According to the communiques issued by both countries, Iranian
commandos supported by Iranian naval units launched the first attack
on Mina al-Bakr Friday night and continued their assault over the
following 48 hours.
    Iran said its troops captured the artificial offshore steel
structure, erected some 20 miles off the Iraqi mainland, as well as
20 Iraqi sailors in the battle.
    Iran also claimed that its forces destroyed or captured 11 Iraqi
naval vessels that came to the rescue. The Iranians said they raised
their flag over the terminal after its capture.
    Iraqi official sources said that the Iranian commando attack had
failed and that all Iranian troops involved were killed or captured.
    ''The Iranians were trying to capture any Iraqi territory as a
morale booster,'' one Iraqi official of the Ministry of Information
said. He asserted, however, that the attack failed and that any
further assaults will be repulsed by a strong naval and commando
force of the Iraqi army in the area of the terminal.
    Naval clashes around Mina al-Bakr have been the main feature of the
war reports since Saturday morning. Iraq claimed it shot down a total
of three Iranian phantom war planes and one helicopter gunship which
came to the support of Iranian attackers at the terminal. Iraq said
the planes were downed in dogfights.
    Meanwhile, the Iraqi regime of President Saddam Hussein Sunday
intensified its verbal attacks on the rival Baath Party regime of
Syria, accusing the Syrian president, Hafez Assad, of conspiring
against Arab nations by his threats to attack Jordan.
    Some 20,000 Syrian soldiers are reported massed on the
Syrian-Jordanian border.
    In an attempt to defuse the volatile situation, Saudi Arabia Sunday
dispatched its second deputy prime minister, and commander of the
Saudi national guard, Prince Abdullah Ibn Saud to Damascus, the
Syrian capital, where he delivered an appeal to the Syrian president
from Crown Prince Fahd of Saudi Arabia.
    
ny-1130 1722est
**********

a253  1509  30 Nov 80
AM-War Rdp, 1st Ld, a218,300
Eds: Updates with report involving frigate in grafs 2 and 3, updates
number of ships lost.
By FAROUK NASSER
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran on Sunday claimed its commandos had
captured Iraq's Mina al-Bakr oil terminal following the biggest sea
battle of the Persian Gulf war. Iraq ridiculed the claim and said its
forces repulsed the attack.
    An Iraqi communique issued Sunday night said an Iranian frigate
approaching Mina al-Bakr was destroyed, indicating the naval battle
had continued through a third day.
    An Iraqi news agency commentator called the purported sinking of the
frigate ''decisive retaliation to the Iranian regime's false claims''
and invited ''anybody who seeks the truth to visit'' the terminal.
    Iran said its marine forces overran the giant Iraqi oil shipping
terminal at the northwestern edge of the gulf and hoisted the red,
white and green-striped flag of the Islamic Republic of Iran ''at the
highest point'' of a derrick.
    Iraq said the Iranians were repulsed with a loss of three of their
U.S.-made Phantom fighter-bombers and four warships in the 10-week-old
war's heaviest sea clash.
    Iran, also calling it the biggest sea battle in the war, claimed the
Iranian navy sank four Soviet-made Iraqi missile boats and seven
other gunboats.
    Iran said only one of its gunboats sustained heavy damage in the
battle, which began Friday with Iranian raids on Mina al-Bakr and the
Iraqi port of Fao at the mouth of the Shatt al-Arab waterway,
according to Tehran radio.
    Fao, Iraq's main Persian Gulf terminal, is the site of pumping
stations that push crude oil to Iraq's terminals at Mina al-Bakr and
Khor al-Amaya, 12 miles south of Fao and due east of Kuwait. The two
deepwater terminals, with a combined capacity of 2.8 million barrels
daily, have not been in operation since the early days of the war.
    The Iranian communique said 20 Iraqi sailors were rescued from
sunken warships in the battle at Mina al-Bakr and taken prisoner.
    Iran's 20,000-man, 8th graf
    
ap-ny-11-30 1809EST
**********

n061  1551  30 Nov 80
 
BC-MARKET-PLACE
(BizDay Commentary)
By ROBERT METZ
c. 1980 N.Y. Times News Service
    NEW YORK - Call it a case of information recycle. On Wednesday
shares of leading energy companies soared after Union Pacific issued
a Wall Street background report containing an unusually optimistic
evaluation of oil and gas prospects for the Rocky Mountain Overthrust
Belt.
    Union Pacific is interested in that region through its Chaplin
Petroleum unit. But there was a problem with the background report:
The information was nearly six months old.
    That aspect of the story did not come out until late Wednesday -
hours after the report had been issued. For most of the day, an
impression was abroad that the potential recovery is greater than
most experts are willing to concede at this point, even though the
evaluation was based on highly speculative data of the sort that led
to a major disappointment in the Baltimore Canyon off the New Jersey
coast.
    But in a stock market made jittery by production interruptions
resulting from the Iran-Iraq war, speculators did not question the
significance of the Union Pacific data.
    The data came from a technical paper delivered to the American
Association of Petroleum Geologists on June 11. The author, Richard
Powers, is a geologist with the United States Geological Survey.
    Using the association's fixed-volume method of estimating, Powers
had predicted that the portion of the Overthrust Belt that runs
through Idaho, Wyoming and northeastern Utah contains perhaps as much
as 15 billion barrels of oil, although he cited a ''most likely''
figure of 7.5 billion barrels. As for the belt's gas potential, he
estimated that the recovery could run as high as 62.5 trillion cubic
feet, with a ''most likely'' figure of 30.5 trillion cubic feet. The
Union Pacific background report used the higher estimates for both
fuels.
    Under the evaluation method used, geologists calculate how many
acre-feet of sedimentary rock are involved and then attribute an
average oil and gas content.
    This sort of thing is done as a matter of course by government
geologists, but the government itself regards the approach as a
rule-of-thumb method - not one meant to convey an actual evaluation
of reserves in place.
    In the same presentation, Powers gave an estimate of proven reserves
of 1.06 billion barrels of oil and 9.7 trillion cubic feet of gas.
Not only were the ''most likely'' figures omitted in the Union
Pacific background report, but so were the proven reserves.
    Ironically, Powers's speech brought little market response last
June, although it was widely reported in the trade. Presumably the
trade experts discounted the news because they are aware of the
hypothetical nature of such calculations.
    When Union Pacific's backgrounder hit Wall Street on Wednesday,
brokerage house salesmen grabbed their telephones and passed the word
along to institutions and individuals alike.
    For their part, institutional investors were no doubt happy to buy
into situations that would help dress up their year-end reports.
Individuals, meantime, were eager for a few more profitable trades in
a year of unusual market gains.
    It is understood that the salesmen at Morgan Stanley & Co. were
especially active in promoting the Union Pacific data. At least two
institutions that asked not to be identified said they received sales
calls from Morgan salesmen. Repeated efforts on Friday to reach
Robert H.G. Baldwin, president of Morgan Stanley & Co., were
unavailing.
    Wednesday's market response was representative of the kind of action
any important news - or rumor - brings these days, particularly in
energy equities. Shares of leading participants in the Overthrust
Belt rocketed. Union Pacific ended the day up five points, at 91 1/2.
During the day it was as high as 96 1/4. Standard Oil (Indiana) reached
99 1/2, then closed at 95 3/4 with a gain of 4 7/8.
    But the best gain of the day was scored by another participant,
Standard Oil of California, even though this company was not
mentioned in the Union Pacific report. Socal's stock roared to an
11-point gain, up nearly 10 percent at the close of 115 1/2. The day's
high was 117 1/2.
    Between the Tuesday close and the Wednesday high, therefore, shares
of those three companies gained a total of $5.2 billion in market
value. Even after the profit-taking that occurred late in the
session, the three companies' shares still showed paper gains of $3.5
billion.
    On Friday, after the Thanksgiving holiday on Thursday, the market
had its first opportunitity to evaluate modifications in the report
issued by Union Pacific. Still, the shares of two of the companies
were essentially unchanged, while those of Indiana Standard rose 1 1/8
more.
    Union Pacific, in a follow-up report Friday, said it could ''not say
with certainty'' what caused the activity in its stock on Wednesday
but noted that some people attributed the activity to the Overthrust
Belt background report. Wall Street observers believed there was no
question that the Union Pacific report had inspired the trading,
which Union Pacific itself labels ''speculative.''
    Again, it should be noted that if the reserves in the Overthrust
Belt ultimately turn out to be in line with Powers's optimistic
projection, a good part of the new discoveries will be found on
properties controlled by companies that were not affected by
Wednesday's heavy trading.
    
ny-1130 1854est
**********

n064  1619  30 Nov 80
 
AM-SYRIA 1stadd
NYT AMMAN: impending crisis.
    The Jordanian government, however, summoned the country's 30,000
army reservists to report to military centers Sunday night, and
official sources said that physicians and hospitals had also been
alerted.
    Syria, too, put its army reserve force on alert - it has 80,000
reservists. According to travelers arriving here from Damascus
Sunday, the mood in the Syrian capital continues to be martial, even
strident, as the Assad regime keeps up its polemical barrage against
Jordan.
    Late Sunday night, for example, Damascus radio broadcast a special
commentary which sought to link Jordanian ''provocation'' with
Israeli ''threats'' to the Arab world.
    ''King Hussein is now trying to drag his people and army to stand by
his side in his plotting, together with the Iraqi regime, against
Syria and the Palestine Liberation Organization,'' the commentary
said. ''The conflict is between the Arab people in Syria and Jordan
on the one hand and King Hussein and his regime and suppressive
institutions on the other hand.''
    The dispute between Syria and Jordan is not only over the question
of support for the Moslem Brotherhood. Syria has objected to Jordan's
vigorous backing of Iraq in its current war against Iran over theb waterway at -
the head of the Persian Gulf. Syria, which
supports non-Arab Iran, has long carried out a bitter rivalry with
the Iraqi Baath Party of President Saddam Hussein of Iraq. Assad and
Iraq's Hussein have also vied for personal political dominance in the
Arab world.
    In recent weeks, the Syrians have permitted a rebel Iraqi group
known as the Iraqi National Democratic Front, to open offices in
Damascus. The avowed aim of this organization is to topple President
Hussein and it is believed to be financed by both Libya and Syria.
    Heightening the friction between Syria and Jordan was the question
of attendance at last week's summit conference here of the Arab
League. Syria, contending that deteriorating relations among Arab
countries would make it difficult for them to achieve major
objectives at the meeting and also fearing political isolation
encouraged by Iraq, had wanted the summit postponed.
    The event was held as scheduled, however, mainly because Jordan and
its moderate allies such as Saudi Arabia and Kuwait argued that Arab
summits were a forum for resolving Arab differences - and that it was
important for Arabs to present a united front against Israel over the
question of Palestine. Syria boycotted the summit conference along
with its political allies, Libya, Lebanon, Algeria, Southern Yemen
and the PLO.
    A statement by a U.S. State Department spokesman late last week,
following initial reports of a Syrian military buildup, drew new
reactions from Syria Sunday. ''Why is Jordan's security suddenly
important to the United States?'' asked Tishrin, the Syrian
government newspaper in a commentary that was repeatedly read over
the state-owned radio. ''Was Jordan's security important when Israel
attacked the West Bank? Why should this security become important for
the United States when the Jordanian regime deviates from the
national line and shows willingness to take part in liquidating the
Palestinian issue? Syria has not changed its stance or its brotherly
policies toward Jordan,'' the newspaper continued, ''but it is the
Jordanian regime which changed its attitude when it gave aid to gangs
of criminals and murderers and when it became a base for conspiracies
against Syria in cooperation with the Iraqi regime and with planning
from the United States.''
    The Syrian Baath Party newspaper, Al-Thawra, said in an editorial
Sunday morning: ''Syria and the PLO, together with the forces of
steadfastness and confrontation, well knew that the security of King
Hussein's regime was part of the United States plan.''
    The role of the United States in the Middle East and the current
tension between Syria and Jordan were discussed at an emergency
meeting late Sunday night of the 60-man Palestine Central Council in
Damascus. The council, which comprises representatives of all
Palestinian commando units, the executive committee of the PLO, and
various popular Palestinian organizations, acts as a liaison between
the executive committee and the Palestine National Council, the ad
hoc assembly of the Palestinians. Arafat attended Sunday night's
meeting, and a spokesman for the leader said that one item to be
discussed would be recent comments by President-elect Ronald Reagan
in which he attacked the PLO and praised King Hussein.
    While there was no official word from Abdulla, the Saudi emissary,
about the progress of his discussions with Assad Sunday, there were
other efforts under way by Arab officials to intervene in the dispute
between Syria and Jordan. In Beirut, Clovis Maksoud, the U.N.
representative of the Arab League, said that the Arab League would
help defuse the crisis if necessary, and he said the current tension
was ''temporary.''
    ''In the next seven weeks before the inauguration of Mr. Reagan, the
Arab League and the United States have the responsibility of
re-introducing the catalyst among us so that when the new
administration takes over in Washington the Arabs will be able to
indicate to the world community and to the United States in
particular the predominance of our national strategic commitments and
the marginality of our differences,'' Maksoud said. 
    
ny-1130 1921est
**********

a274  1654  30 Nov 80
AM-Queen-Release,200
Father Of Richard Queen Leaves Hospital
    AUGUSTA, Maine (AP) - The father of Richard Queen, the American
hostage most recenlty freed by Iran, was released from the hospital
Sunday after four days of treatment for injuries suffered in an auto
accident.
    Harold Queen, 64, planned to visit friends and recuperate in New
York after leaving the Kennebec VALLEY Medical Center in Augusta, said
hospital spokesman Bryant Jones.
    Richard Queen, at his father's request, did not visit the hospital.
He decided to cancel his trip to Vermont and stay in Washington after
being notified of the accident Wednesday, Jones added.
    The elder Queen was en route to a Thanksgivingday get-together in
Vermont when his car slid off an icy road near Winthrop. He suffered
head cuts, fractured ribs and bruises, Jones said.
    His son spent Thanksgiving in 1979 in captivity with the other
American hostages in Iran. He was released in July when his captors
were unable to diagnose an illness that American doctors later said
was multiple sclerosis.
    The Queens moved from New York to Lincolnville, on the Maine coast,
a year ago.
    
ap-ny-11-30 1953EST
**********

a999  2113  30 Nov 80
. . .are the top stories in sight for PMs. The General Desk
l-Fated
 
    WASHINGTON - Ronald Reagan's pledge to make deep cuts in the
government's 1981 budget seems headed for the graveyard of unfulfilled
political promises. That's the place where Jimmy Carter's vow to
balance the budget this year was buried. Slug PM-Washington Today.
New, 690 words. Will stand. Moved in advance as a077 of Nov. 28.
 
 
    HUSSEIN RESPONDS TO SYRIAN THREAT:
 
           Jordan Will 'Cut Off the Arm' of Any Attacker
 
    AMMAN, Jordan - King Hussein strengthens Jordan's forces on the
Syrian border and says they won't attack Syria but will ''cut off the
arm of anyone attacking us.'' Slug PM-Jordan-Syria. New material, 600
words. Morning lead expected.
 
 
    OTHER INTERNATIONAL NEWS:
 
           Iran Claims an Iraqi Oil Terminal
 
    BEIRUT, Lebanon - Iran claims the capture of Iraq's chief Persian
Gulf oil terminal, but Iraq says its forces repulsed the attack and
sank a frigate and three other Iranian warships. Slug PM-War Rdp. New
material, 500 words. Morning lead expected.
 
           Homeless Reluctant to Leave Quake Area
 
    NAPLES, Italy - The government offers 12,000 hotel rooms along the
coast as winter quarters for earthquake victims, but the homeless are
not enthusiastic about leaving their native districts. Slug PM-Quake.
New material, 500 words. Morning lead expected. Laserphotos NY11,
NY12.
 
           A Chubby Comedian Running for President
 
    PARIS - The presidential candidacy of Coluche, a chubby comedian who
dresses in outlandish clothes and peppers his speech with foul words,
is gaining momentum. Slug PM-Coluche. New, 500 words. Should stand.
Laserphoto NY17.
 
 
    NEW STUDIES ON RAPE:
 
           Women Should Resist Rape Attempts, Reports Say
 
    CHICAGO - Women who try to fend off rapists by screaming, kicking
and biting are more likely to escape an attack than those who don't 
resist or attempt to talk their way out, two recent studies say. Slug
PM-Rape Study. New material, 400 words. Will stand.
 
 
    AROUND THE NATION:
 
           Search is On for Killer Who Makes Victims Beg
 
    POINT REYES STATION, Calif. - A killer who ritualistically makes his
victims plead for their lives before slaying them may have killed two
hikers at a seashore park, authorities say. Police have found two
other bodies nearby, and believe the killer may be involved in seven
slayings. Slug PM-Seashore Slayings. New material, 490 words. May
stand.
 
           Bankruptcy Booming, Creditors Complaining
 
    UNDATED - The bankruptcy business is booming and creditors are
complaining. A new law allow debtors to keep more of their property
when they file for bankruptcy. It also makes it easier to wipe out
your debts without actually going bankrupt or paying back all the
money you owe. Slug PM-Bankruptcy. ConsumerWatch by AP Writer Louise
Cook. New, 620 words. Will stand. With Laserphoto Cartoon NY4.
 
           Today's Topic: A Love Canal Family
 
    NIAGARA FALLS, N.Y. - Ray and Kathy Aul consider themselves lucky -
for the first time in almost two years, they see a day when they will
never have to go back to Love Canal. Slug PM-Topic-Love Canal Family.
By AP Writer John C. Given. New, 900 words. Will stand.
 
    
ap-ny-12-01 0012EST
**********

n513  2211  30 Nov 80
 
BC-WAR-2takes-12-01
    By Douglas Watson
    (c) 1980 The Baltimore Sun (Field News Service)
    BASRA, Iraq - The winter rains have begun falling on both sides of
the disputed Shatt al-Arab estuary, turning much of the battlefront
between Iraq and Iran into a quagmire.
     This is one reason why their 10-week-old war is likely to continue
for months more, but as a stalemate without many advances by either
army, at least until next spring.
     There are other reasons: One is that thus far both regimes, that of
Iran's Ayatollah Ruhollah Khomeini and Iraq's strongman President
Saddam Hussein, appear to have been helped more than hurt by the
conflict that keeps their peoples' attention focused on foreign foes
rather than internal problems.
     At the old Shatt al-Arab Hotel that overlooks the waterway and the
scores of merchant ships stuck in it since the war started, a banner
near the entrance declares, ''Saddam (Hussein), all the people are
with you.'' It seems largely true, with only a few Iraqi dissenters
privately wondering whether this war was necessary.
    When a line of 24 Iraqi tanks, many bearing pictures of President
Hussein, threaded through the streets here the other day, the crews
waving back to the applause of citizens standing on the street
corners, there was the air of accomplishment that an Arab army feels
holding territory taken from the long-hated Persians.
    The tanks, which were in the first wave of Iraq's Sept. 22 invasion,
were being given a rest in the rear as the war appears to be shifting
into a new, less dramatic standoff likely to run through the winter.
    The snows will be deeper in mountainous Iran and fuel much scarcer
there, but anyone who expects Iran to capitulate to Iraq merely
because of hardships is misculating. Hardships can bring out the best
in a people as well as the worst. In Iran, which will never willingly
accept occupation by a country less than one-third its population,
the war also has rekindled patriotic feelings.
     Despite Iranian President Abolhassan Bani-Sadr's claims that Iran
is at last about ready to open a counter-offensive against Iraq, this
does not seem immediately likely. There is no evidence Iran has a big
punch ready.
     But Iran need not invade Iraq to keep up the fight. As long as
Iranian troops hold part of embattled Khuzestan province, their
mighty 175-mm. guns can reach the Shatt al Arab estuary about 30
miles away, keeping ships from reaching this city, Iraq's chief port.
     If forced out of the low-lying, southwestern corner of their
country, the Iranian troops can pull back into the surrounding
mountains confident that the Iraqis will not follow them and invite
easy ambushes.
    As the Russians showed Napoleon Bonaparte and Adolf Hitler, retreat
can be a winning tactic.
    Another reason why the war is likely to continue for a long time is
that it has not been all that costly. Western diplomats in Baghdad
believe that Iraq's reporting of its own casualties are only
one-third the actual number. Even so, after 2 1/2 months of fighting,
only about 3,000 Iraqi soldiers are believed to have been killed.
    For 3,000 heartbroken families that is 3,000 too many dead. But the
carnage is small compared to many other conflicts. In the American
Civil War, for example, single battles often took more than 20,000
lives.
     Most Iraqis never see the coffins. Instead, each night they are
given regular reruns of patriotic war film showing Iraqi jets roaring
down runways or soldiers at the front vying with each other to
proclaim Saddam Hussein's greatness to the government cameras.
    The war is less appealing when viewed from amid the mud of Al Amara,
a town 65 miles north of here that is a main supply center for the
troops who crossed into Iran to the east. The Iraqi army seems to be
everywhere, a confused mass of trucks and tents.
    MORE
    
ny-1201 0114est
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a011  2211  30 Nov 80
PM-National Briefs,590
    DETROIT (AP) - Careless cigarette smoking has been cited as the 
cause of a fire that erupted at a group home for adults, killing five
elderly men, authorities said.
    The blaze broke out about 1 a.m. Sunday at the Donahue Foster Care
Home when bedding ignited after a resident lit a cigarette, officials
said. Seven of the home's 12 residents escaped, as did the supervisor
on duty. One of the residents got away by jumping out a window,
authorities said.
    The five victims, ranging in age from 57 to 69, apparently died of
smoke inhalation, officials said.
    ---
    SEATTLE (AP) - A ferry has rescued about 240 passengers from the
cruise steamer Virginia V, which lost power and ran aground in Puget
Sound, U.S. Coast Guard officials said.
    Officials said the 115-foot Virginia V, one of the last Puget Sound
steamers, was on a chartered cruise Saturday night when a steam valve
blew and the ship lost power.
    Officials said a passing tugboat towed the drifting Virginia V to
calm waters. The ferry Walla Walla, hearing a distress call, veered
from its cross-sound run to the Virginia V. The rescue was completed 
early Sunday.
    ---
    PITTSBURGH (AP) - Thousands of Pennsylvania deer hunters are taking
to the forests and fields today, stalking a whitetail deer herd
that's larger than it was in pioneer days.
    Robert Cowan, an animal nutrition professor at Pennsylvania State
University, said the deer population rose to its present 750,000 when
lumbering opened up forests and created the kind of thick underbrush
favored by deer. Overhunting had reduced the herd to practically
nothing by 1800.
    Pennsylvania Game Commission spokesmen said the whitetail would
overpopulate the state were it not for the annual two-week hunt. They
said they hope this year's harvest will match the 114,000 deer
reported killed last year.
    ---
    PHILADELPHIA (AP) - A hearing has been set for Dec. 17 for a Roman
Catholic priest and two other anti-nuclear protesters arrested after
blood was poured on the field during the Army-Navy football game.
    The game was interrupted Saturday as the three protesters were
apprehended and led off the field. A bloodstain remained near the
10-yard line on Veterans Stadium's artificial surface after the game,
which Navy won 33-6.
    The Rev. Patrick K. Sieber, 38; his brother, Richard Sieber, 32; and
John Hand, 33, all of Philadelphia, were charged with disorderly
conduct, criminal trespass and criminal mischief, then released.
    ---
    HONOLULU (AP) - A Chilean merchant ship has rescued 30 crewmen from
a 750-foot Italian vessel that was sinking in heavy seas, the U.S.
Coast Guard reported.
    The crewmen of the freighter Sandalion were taken aboard the Chilean
ship Arauco on Saturday about 1,500 miles southeast of Tokyo, a
spokesman for the Coast Guard said in Honolulu. The Sandalion's master
reported two hatch covers had been torn off and water was flooding
the hold.
    The Arauco is due at Long Beach, Calif., on Dec. 11, the Coast Guard
said. The Sandalion, which left Japan for Honolulu with a load of
coal, was still afloat at last report.
    ---
    AUGUSTA, Maine (AP) - The father of Richard Queen, the American
hostage freed by Iran in July, has been released from a hospital after
suffering cuts and fractured ribs in an accident.
    Harold Queen, 64, was en route to a Thanksgiving Day get-together in
Vermont on Wednesday when his car slid off an icy road, hospital
spokesman Bryant Jones said. He was released Sunday.
    Richard Queen, freed when his captors were unable to diagnose an
illness that American doctors said was multiple sclerosis, did not
visit the hospital at his father's request, Jones added.
    
ap-ny-12-01 0111EST
**********

n514  2216  30 Nov 80
 
BC-WAR-1stadd-12-01
    x x x trucks and tents.
    
    Only the date palm groves, the most extensive in the world, and the
marsh Arabs, who for centuries have lived in houses made of
bullrushes and sailed on rafts built of them, seem to be unaffected
by the war .
     Here in Basra, which was bombed at the beginning of the war but has
not come under attack for weeks, the street lights again are left on
in the evenings. Stores and cafes are jammed with an influx of
soldiers though the streets of this ''Venice of the East'' often seem
more like canals .
     What is empty are the industrial complexes that were being built
around Basra and were attacked at the war's outset, such as a mammoth
petrochemical complex nearing completion at which three Americans and
more than 35 other workers died.
     The government of Iraq in recent weeks has told all the foreign
firms that fled here when the war started that there is no reason for
them to stay away any longer and they are expected to return to their
construction jobs or risk losing contracts .
     The Iraqi government also has another big concern, the lukewarm
support it has received from the Soviet Union despite their
friendship pact. Asked about this, an Iraqi diplomat would only say,
''We consider the Soviet Union a friendly country.''
     A Basra taxi driver was much more direct in complaining about the
Russians, saying, ''Maybe next year we (Iraq) will turn back toward
France or America, like Egypt did. All the people, we like Americans
better, but we cannot say so or we go to jail.''
     Western diplomats in Baghdad said what worries the Iraqis is the
possibility the United States might allow American military supplies
to go to Iran if the hostages are returned, while Iraq is having
trouble getting resupplied by the Russians.
     Another reason this war is like to be prolonged is that Iraq has
enough money in the bank, some $34 billion, to keep fighting for at
least two years even though only a small fraction of its normal oil
flow can be exported through pipelines to the Mediterranean Sea. The
world's oil consumers are likely to feel the petroleum pinch much
sooner than Iraq.
     So, the four Chinese sailors who have been living for months now in
the dreary Shatt al Arab Hotel, its souvenir stand closed and
blackout curtains in place, may be waiting here a lot longer before
they can sail home.
    ENDIT WATSON
    
ny-1201 0119est
**********

a019  2314  30 Nov 80
PM-War Rdp, Bjt,460
Iran Claims, Iraq Denies Capture of Big Iraqi Oil Terminal
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran claimed its commandos captured one of
Iraq's major oil shipping terminals in the biggest naval battle of the
Persian Gulf war, but Iraq said its forces repulsed the attack and
sank a frigate and three other warships.
    Iran said its naval forces occupied the giant Mina al-Bakr oil
terminal at the northwestern corner of the gulf and hung the red,
white and green flag of the Islamic Republic of Iran ''at the highest
point'' of a derrick.
    It said Iranian warships sank four Iraqi missile boats and seven
other gunboats in the three-day battle.
    Iraq said the Iranian claims were false, and the political
commentator of Pars, the Iraqi news agency, invited ''anybody who
seeks the truth to visit al-Bakr.''
    An Iraqi communique said in addition to the four Iranian warships
sunk, Iraqi forces shot down three of Iran's Phantom jet
fighter-bombers and two helicopter gunships.
    Iran said one of its gunboats was badly damaged but admitted no
other losses.
    Tehran Radio said the battle began Friday with Iranian raids on Mina
al-Bakr and the port of Fao, 12 miles to the north. Fao, at the mouth
of the Shatt al-Arab estuary, is the site of the pumping stations
that send crude oil to Mina al-Bakr and Khor al-Amaya, another
offshore loading terminal nearby.
    The two deepwater terminals had a combined capacity of 2.8 million
barrels of crude oil a day, but they have not been in operation since
the early days of the war.
    However, the pro-Syrian Lebanese newspaper As-Safir reported that
Syria has agreed to allow Iraq to resume exporting oil through the
550-mile pipeline from the Kirkuk fields in northern Iraq to
Mediterranean terminals in Syria and Lebanon.
    The pipeline has a capacity of 1.2 million barrels a day, but Iraq
stopped using it in 1976 to protest the Syrian army's intervention in
Lebanon to prevent the defeat of the Christians by the Moslems in the
Lebanese civil war.
    Although Syria backs Iran in the war and Iraq broke off diplomatic
relations with Syria in October, the newspaper said the agreement was
prompted by ''the pressing economic interests'' of both Syria and
Iraq and would not resolve the decades-old feud between their rival
ruling parties.
    Observers said Iraqi use of the pipeline would contribute more than
$125 million a year in transit fees to Syria, which had a $2 billion
deficit in its balance of payments last year.
    There was no confirmation of the report from either Iraqi or Syrian
authorities. Turkey and Iraq have also been reported making
preparations for the resumption of oil shipments from the Kirkuk field
through a pipeline across Turkey to the Mediterranean.
    
ap-ny-12-01 0214EST
**********

a025  0000  01 Dec 80
PM-Jordan-Syria, Bjt,580
Jordan Strengthens Forces on Syrian Border
By ALY MAHMOUD
Associated Press Writer
    AMMAN, Jordan (AP) - King Hussein strengthened Jordan's forces on
the Syrian border, saying they would not attack the 25,000 Syrian
troops facing them but would ''cut off the arm'' of anyone attacking
them.
    Meanwhile, Saudi Arabia's King Khaled tried to end the crisis
between the two Arab neighbors on his north. He sent his second deputy
prime minister and national guard commander, Prince Abdulla Bin
Abdul-Aziz, to Damascus to see Syrian President Hafez Assad. The
prince was to come from Damascus to Amman to talk with Hussein.
    The Saudi state radio said Khaled was urging Assad and Hussein to
exercise restraint and seek a negotiated settlement of their dispute.
Carter administration officials said the U.S. ambassadors to Syria
and Jordan also appealed for restraint and caution in meetings with
officials in Damascus and Amman.
    Jordan is a U.S. ally, while Syria is the Soviet Union's chief ally
in the Middle East.
    Syria reportedly massed 25,000 troops and 600 tanks along its
frontier with Jordan 10 days ago, just before the convening of an Arab
summit conference in Amman which Assad boycotted because he expected
it to back his enemy Iraq in its war with Iran. Hussein in response
reinforced Jordan's forces on the border.
    The king ordered another division to the border Sunday, called up
reservists, mobilized civil defense units, tightened airport and
border security and began stockpiling fuel, a highly placed Jordanian
source said. Jordan now has three divisions at the frontier, compared
to two for Syria.
    However, the border remained open and the two government's embassies
in Damascus and Amman were reported conducting business as usual.
    Hussein made a helicopter tour of the frontier Sunday and inspected
positions, some just a few hundred yards from the Syrian lines. He
was shown on television shaking hands with scores of officers and
soldiers and telling his cheering troops that Jordan will ''never
attack an Arab brother but we will cut off the arm of anyone attacking
us.''
    The highly placed Jordanian source, who declined to be identified,
said Hussein's buildup was ''strictly precautionary ... and we have no
intention whatsoever of pre-empting the Syrians.''
    ''The whole situation, to us, is nothing but muscle-flexing by the
Syrians who think they can intimidate Jordan,'' he said. ''The Syrians
are talking like a big power to a small power. The Syrians want to
weaken Iraq by attacking Jordan.''
    Asked if Jordan would seek help from Iraq, the source said, ''We can
depend on ourselves.''
    Jordan is ferrying supplies to Iraq for the war against Iran, while
Syria backs Iran in the war.
    Syria also claims Jordan is training and supplying terrorists of the
fundamentalist Moslem Brotherhood which the Syrians blame for a
16-month-old campaign of bombings and political assassinations aimed
at overthrowing Assad. Syrian sources said this was the explanation
for the border buildup given to U.S. Ambassador Talcott Seelye in
Damascus over the weekend.
    Israel's deputy defense minister, Mordechai Zippori, said Prime
Minister Menachem Begin's government was watching the Syrian-Jordanian
crisis closely ''to make sure there won't be any surprises or changes
in the situation that could turn in Israel's direction.'' But
Israel's military chief of staff, Lt. Gen. Rafael Eytan, told an
audience in southern Israel, ''The deeper the disunity in the Arab
world, the more advantageous it is to Israel.''
    
ap-ny-12-01 0259EST
**********

n552  0355  01 Dec 80
 
BC-SUMMARY-3takes-12-01
    EDITORS:
    Following is a complete summary of today's FIELD NEWS SERVICE
report. The editors may be phoned at (312) 321-2801.
    
    MONDAY, DEC. 1, 1980
    
    
    BEHIND THE TOP HEADLINES
    
    BASRA, Iraq (Watson - Baltimore Sun - WAR) - Winter rains turn the
battlefront between Iraq and Iran into a quagmire. This is one reason
why the 10-week-old war is likely to continue for months more, but as
a stalemate without many advances by either army, at least until next
spring. (1,000) FNSPM
    
    UNDATED (Rosenberg - Boston Globe - ELECTRONIC) - What Santa's
disciples want this year are more of those blinking, bleeping
electronic toys and games. The campaign to place thousands of
electronic toys in American homes is well underway, a sales effort
backed by new marketing studies which delve into esoterics such as
parental discipline and family organization. (1,700) FNSPM
    
    UNDATED (Gammons - Boston Globe - TURNER) - Ted Turner's peers are
trying to figure out what's behind his money blitz in the baseball
free agent market. Bill Veeck calls Turner's spending spree ''a
monumental crap shoot.'' But it seems Turner is gambling that he can
make the Braves a national team with his Superchannel 17, which beams
into more than nine million homes already. (1,200) FNSPM
    
    
    INTERNATIONAL
    
    MOSCOW (Wade - Telegraph - POLES) - Soviet newspapers give a clear
warning to restless Polish workers by quoting a Prague newspaper
article recalling how Soviet-bloc forces ''defeated the designs of
counter-revolution'' in Czechoslovakia in 1968. (500) FNSPM
    
    MOSCOW (Wade - Telegraph - SECT) - The Kremlin says the 914 members
of the People's Temple sect who killed themselves in Guyana two years
ago were American dissidents driven to death by the Central
Intelligence Agency. (300) FNSPM
    
    LONDON (Erlandson - Baltimore Sun - TIMES) - Dismissal notices are
going out to 4,100 employees of The Times and The Sunday Times. The
newspapers, Britain's most prestigious, are to be closed in March
unless a satisfactory buyer is found by New Year's Eve. The signs are
encouraging. (650) FNSPM
    
    LONDON (Erlandson - Baltimore Sun - MEDALS) - The medals of Private
Henry Tandey - the most decorated British private soldier in World
War I - are sold to an anonymous bidder for a record $65,000 in less
than two minutes of fiercely disputed bidding. The loser in the
bidding was Tandey's hometown. (750) FNSPM
    
    UNITED NATIONS (Orvis - Sun-Times - CROCS) - The best way to protect
certain endagered species may be to farm and harvest them, according
to the findings of some UN-assisted experiments with crocodiles.
(800) FNSPM
    
    
    DOMESTIC
    
    LOS ANGELES (Lewthwaite - Baltimore Sun - REAGAN) - President-elect
Reagan says that turning around the domestic economy would take
priority over foreign affairs immediately after his inauguration next
month. (1,000) FNSPM
    
    WASHINGTON (Edsall - Baltimore Sun - CONGRESS) - The lame-duck
session of Congress, which began amid signs of bitter partisan
conflict, is coming to a subdued end this week as politicians await a
new Republican administration and the first GOP majority in the
Senate in 26 years. (800) FNSPM
    
    GLOUCESTER, Mass. (Kirchheimer - Boston Globe - MOON) - For a member
of the Unification Church, life in the picturesque Gloucester
translates into fear for safety and discrimination in business. Many
Gloucester residents, for their part, freely express their dislike
for the Moonies and their willingness to take advantage of them.
(2,300) FNSPM
    
    MORE
    
ny-1201 0658est
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a063  0406  01 Dec 80
PM-Jordan-Syria, 1st Ld, a025,240
Eds: Syria doubles troops and tanks on border, new info grafs 1-3
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - Syria doubled its forces on Jordan's border
to 50,000 troops and 1,100 tanks over the weekend, well informed
sources said today. Observers in Damascus said armed conflict could
break out any day.
    They said a letter from Saudi King Khaled, who is trying to mediate
the conflict, to President Hafez Assad contained threats, and
appeared to have been counterproductive. The substance of the threats
was not known, but Saudi Arabia is a big financial backer of the
Damascus government.
    Saudi Prince Abdulla Bin Abdul-Aziz, deputy premier and commander of
the national guard, delivered the letter to Assad during a three-hour
meeting Sunday. Palestine Liberation Organization leader Yasser
Arafat also conferred with Assad for more than two hours Sunday, and
an aide to Arafat described the border situation as ''very serious.''
    King Hussein of Jordan strengthened his forces on the Syrian border
Sunday, saying they would not attack the Syrian troops facing them
but would ''cut off the arm'' of anyone attacking them. Jordan is a
U.S. ally, while Syria is the Soviet Union's chief ally in the Middle
East.
    Syria began massing troops and tanks along its frontier with Jordan
10 days ago, just before the convening of an Arab summit conference
in Amman which Assad boycotted because he expected it to back his
enemy Iraq in its war with Iran. Hussein in response reinforced
Jordan's forces on the border.
    The king ordered, 6th graf a025
    
ap-ny-12-01 0706EST
**********

a079  0626  01 Dec 80
PM-Hostages,410
By The Associated Press
    The 52 American hostages have not yet been transferred to the
custody of the Iranian government by militants who have been holding
them since Nov. 4, 1979, Iran's minister of state for executive
affairs was quoted as saying today.
    The Tehran daily Ettelat reported that Behzad Nabavi said in an
interview: ''The hostages have not been handed over completely by the
students following the Imam's (Ayatollah Ruhollah Khomeini's) line to
the government yet.''
    Nabavi, appointed by Prime Minister Mohammad Ali Rajai to head a
government commission dealing with the hostage issue, did not amplify
the remark. His comment followed reports last week that the
government had taken custody of the hostages.
    Meanwhile, CBS television broadcast an interview Sunday with Rajai
who said, ''The hostages are in excellent health and very good
shape.'' CBS correspondent Mike Wallace reported from Tehran that it
is not clear who is in control of the hostages or whether they are in
the U.S. Embassy compound.
    Nabavi made his comment in response to a question on whether the
United States has met Iran's four conditions for release of the
hostages, the newspaper said.
    The militants received approval Nov. 3 from Khomeini to hand over
the hostages to the government, which is now negotiating with the
United States for release of the captives.
    Hashemi Rafsanjani, speaker of the Iranian Parliament, said on
Saturday that he did not know where the hostages were. ''I didn't even
know where they were before,'' he told a news conference.
    The location of the Americans has not been confirmed since the
unsuccessful U.S. rescue attempt in April. The captors claimed then
that they had scattered the hostages throughout the country to foil
any attempt to rescue them from the U.S. Embassy in Tehran.
    Nabavi said Iran was still awaiting American clarification on
whether the United States would meet Iran's four conditions for
release of the hostages, the paper said. ''As we have already
declared, America's response is not clear and proper,'' the newspaper
quoted him as saying.
    The United States is now preparing a second response to Iran's
proposed conditions after the Tehran government asked clarification of
Washington's first answer.
    The Iranian Parliament said on Nov. 2 that the hostages would be
released if the United States freed Iranian assets frozen in the
United States, ended all pending lawsuits against Iran, confiscated
and returned to Iran the wealth of the late shah and his family and
pledged not to interfere in Iranian affairs.
    
ap-ny-12-01 0926EST
**********

n005  0629  01 Dec 80
 
BC-NAIPAUL
(ART AVAILABLE ON REQUEST)
By MICHIKO KAKUTANI
c. 1980 N.Y. Times News Service
    NEW YORK - In V.S. Naipaul's stories, there is always an area of
darkness just beyond the edge of town; colonists arrive, empires rise
and collapse, and a new, not-so-brave world emerges, but always the
bush remains, waiting to cover over whatever remains. It is a dark
vision, to be sure, and it is a vision shaped by the author's own
familiarity with the margins of society. ''It came from living in the
bush,'' he says. ''It came from a fear of being swallowed up by the
bush, a fear of the people of the bush, and it's a fear I haven't
altogether lost. They are the enemies of the civilization which I
cherish.''
    By ''the bush,'' Naipaul is referring to ignorance and obscurity,
but he is also referring to his native Trinidad, where his
grandfather, a Brahmin from Uttar Pradesh, India, had come as an
indentured worker. Now, at the age of 48, Vidiadhar Surajprasad
Naipaul has presumably left all that behind, although a deep residue
of anxiety remains. Polite, self-conscious and resolutely austere, he
possesses the fine manners and wears the tweeds and flannels of an
English country gentleman. He has won every major literary award in
Britain, has reportedly been considered several times for a Nobel
Prize, and recently he came to New York from his home in London to
receive the prestigious Bennett Award, given by The Hudson Review in
recognition of ''his outstanding accomplishments as a novelist and
man of letters.''
    In both his fiction and essays, Naipaul has charted the emotional
and political geography of what he calls ''half-made societies,''
places, as he wrote in his last novel, where ''the West is packing
its boxes, waiting for the helicopters.'' The West Indies (''The
Middle Passage''), India (''A Wounded Civilization''), Africa (''A
Bend in the River'') and South America (''The Return of Eva Peron'')
have all been meticulously chronicled in his spare, unforgiving
prose, and in keeping with his prescient ability to define the new,
he is now working on a nonfiction book about Islam, based on recent
travels there.
    His meditations on Iran, characteristically enough, display a
profound suspicion of ideology. ''All the awakening has to do with
money - it doesn't have to do with any new spiritual development,''
he says of the revolution there. ''Money has awakened people who have
been on the margin a long time. Money has also opened their eyes to
their deficiencies. Money has filled them with a kind of shame,
therefore. Take away the money, and they'll become quiet as mice
again.'' As he sees it, the current stirrings in the Islamic world
spring not so much from a distrust of the West, as from a kind of
envy coupled with ''rage at their own incompetence, a delayed
recognition of backwardness.''
    In Naipaul's remarks, as in his books, there is no moralizing, no
positing of good and evil. Things fall apart, history simply
proceeds. His distrust of the colonizers, it seems, is commensurate
only with his distrust of the colonized. He rejects as a ''fairy
tale'' the notion of a bright new world made up of young, emerging
nations just as freely as he rejects nostalgia for the vanished world
of empire. If he shows some sympathy for the casualties of history,
his sharpest words are reserved for those ''revolutionaries who visit
centers of revolution with return air tickets,'' those casual
ideologues who export rhetoric.
    ''Certain subjects are so holy that it becomes an act of virtue to
lie,'' he says of the liberal fashions of the day. ''Never say 'bush
people,' never say 'backward country,' never say 'boring people,'
never say 'uneducated.' But turn away from what is disagreeable and
what happens in the end is that you encourage the chaps there to
start lying about themselves, too. So they lie because it's what is
expected of them. Soon everyone begins to lie.''
    Such opinions have obviously done little to endear Naipaul to the
liberal establishment, and critics both here and in England have
increasingly tried to portray him as comforting the forces of
reaction. They have chastised him for not upholding the popular,
optimistic vision of the Third World, but as the author points out,
he is ''not a spokesman for anything.''
    On the face of it, some of Naipaul's opinions expressed in
conversation might seem to confirm his critics' suspicions. Expressed
in his perfect Oxbridge speech is a disdain for his native Trinidad
and other ''primitive'' societies. ''I can't be interested in people
who don't like what I write because if you don't like what I write
you're disliking me,'' he says. ''I can't see a Monkey - you can use
a capital M, that's an affectionate word for the generality - reading
my work. No, my books aren't read in Trinidad now - drumbeating is a
higher activity, a more satisfying activity.''
    Acerbic as he sounds, though, Naipaul is hardly a simple elitist;
his sharp perceptions are deeply rooted in and validated by his own
history. ''I do not have the tenderness more secure people can have
towards bush people,'' he explains. ''I feel threatened by them. My
attitude and the attitude of people like me is quite different from
people who live outside the bush or who just go camping in the bush
on weekends.''
    As a young man in Trinidad, Naipaul was intent on escaping the
boredom he felt there. Writing became a means by which he could at
once leave behind his past and examine it through the distance of
art. Also, he wanted to pay homage to the life of his father, who had
worked as a reporter on a local paper. And he wanted to be famous.
    
ny-1201 0932est
**********

a227  1310  01 Dec 80
AM-Syria-Jordan, Bjt,610
Syria Reinforces Border As Fears of War Increase
Laserphoto Map NY37
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - Fears of a second war in the Middle East
heightened Monday on reports that Syria has 50,000 troops and 1,200
tanks on Jordan's border. Jordan moved up tanks and troops and said it
would not shoot first but would defend the country against attack.
    A top Soviet official arrived in Damascus to ratify a Syrian-Soviet
friendship treaty and the United States was considering a Jordanian
request for arms.
    Tension between the two Arab neighbors built up as a result of their
conflicting positions on the Iran-Iraq war and Syrian charges that
Jordan was supporting Islamic fundamentalists trying to overthrow the
government in Damascus.
    In Washington, the Carter administration was considering a shipment
of military spare parts and ammunition to Jordan and one U.S.
official rated the chances of a conflict at better than 50-50.
    With tension mounting, Jordan submitted lists of arms and spare
parts it wants from the United States and a decision was expected soon
on the requests.
    Informed sources said Syria had 50,000 troops and 1,200 tanks on the
border, with three divisions massed along the stretch that commands
the main highway linking Jordan and Syria. The initial buildup of
25,000 men and 600 tanks began on Nov. 22, the sources said.
    Prime Minister Mudar Badran of Jordan told the parliament in Amman:
''We shall not shoot first, but we shall defend our country against
whatever attack or whichever enemy.''
    Saudi Arabia attempted mediation and U.N. Secretary-General Kurt
Waldheim urged restraint in the confrontation that has arisen between
Jordan and Syria after the outbreak of the Iran-Iraq war Sept. 22.
    Jordan, whose King Hussein is considered among the most trusted Arab
allies of the United States, said it would turn Jordan into a
''flaming inferno to burn every aggressor.'' Jordan strengthened its
forces on the border to counter the Syrian deployment.
    At Ramtha, the Jordanian border crossing post, a young Jordanian
colonel told AP reporter Alex Efty Monday, ''the situation is very
dangerous and anything might happen any minute.'' He said thousands of
troops were massed on both sides of the border and ''fighting may
break out by accident in a situation like this.''
    Saudi Prince Abdullah Bin Abdul-Aziz, deputy prime minister and head
of the national guard, ended talks with President Hafez Assad of
Syria and flew home. He had been expected by Jordanian officials to
visit Amman.
    Shortly after Abdullah's departure from Damascus, Vasily V.
Kuznetsov, Soviet first vice president, arrived to a red-carpet
welcome in the Syrian capital to exchange ratification documents of a
new Soviet-Syrian treaty of friendship and cooperation.
    Kuznetsov was expected to discuss the Syrian-Jordan situation in
addition to participating in a ceremony ratifying the treaty signed
Oct. 8 in Moscow by Assad and Soviet President Leonid I. Brezhnev.
    Although Abdullah's unexpected trip home triggered speculation the
Saudi mediation effort had collapsed, the Saudi state radio quoted
Abdullah as saying he was optimistic Syria-Jordan tensions were
receding.
    But observers in Damascus said Saudi Arabia made ''threats'' in a
message to Assad that apparently made the mediation effort
counterproductive.
    The nature of the alleged threats was not known. But Saudi Arabia is
a major financial supporter of Syria.
    At the United Nations, Waldheim called in Jordanian and Syrian
diplomats Monday to urge restraint on both countries. ''The
secretary-general is following the tense situation between Jordan and
Syria with the utmost concern,'' U.N. spokesman Rudolf Stajduhar told
reporters.
    
ap-ny-12-01 1610EST
**********

a228  1316  01 Dec 80
AM-US-Mideast,320
U.S. Considers Shipping Military Parts to Jordan
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - The Carter administration is considering a
shipment of military spare parts and ammunition to Jordan amid reports
of a continued military buildup by Syria on the Jordanian border.
    With an estimated 25,000 to 30,000 Syrian troops massing, one U.S.
official told The Associated Press Monday he rated the chances of a
conflict at better than 50-50.
    ''If the crunch comes, it probably will be the result of accident or
miscalculation,'' said the official, who asked not to be named.
    With tensions mounting over the weekend, Jordan submitted two or
three lists of arms as well as spare parts, with additional requests
expected early this week.
    The parts requested are for jet planes, tanks and other military
gear obtained from the United States over the last several years.
    ''It's like Christmas shopping lists,'' the official said. ''It's a
matter of getting some priorities down.''
    Deputy Secretary of State Warren Christopher said he is hopeful the
issue of whether to aid Jordan will become moot.
    ''(I) hope that the tensions will soon be eased and it won't be
necessary to take any action on those subjects,'' Christopher told
reporters after a meeting with Egyptian Vice President Hosni Mubarak
at the State Department.
    ''From the beginning, our positon has been that the war between Iraq
and Iran should be brought to a quick conclusion and that it should
not be proliferated or extended,'' he said. ''Any tensions between
Syria and Jordan would be a very unwelcome extension of that.''
    A decision to assist Jordan, with whom the United States has a long
relationship, is expected soon. At the same time, the administration
is quietly supporting efforts by Saudi Arabia to intercede.
    The Saudi representative, Prince Abdullah, met in Damascus Sunday
night with Syrian President Hafez Assad, and also with Yasser Arafat,
chairman of the Palestine Liberation Organization.
    
ap-ny-12-01 1616EST
**********

n049  1319  01 Dec 80
 
AM-SYRIA
High-Level Soviet Delegation in Syria for Talks
c. 1980 N.Y. Times News Service
    BEIRUT, Lebanon - A high-level Soviet delegation arrived in Damascus
Monday to exchange with Syrian officials the articles of ratification
of the treaty of friendship and cooperation between the two countries
and to hold talks on Middle East developments in light of the border
tension between Syria and Jordan.
    Damascus radio said the Soviet team is headed by Vassili Kuznetsov,
first vice president of the Presidium of Supreme Soviet.
    While arrangements for the visit preceded the sabre rattling on the
Syrian-Jordanian border, Soviet support for Damascus is seen by
analysts as a major factor in Syria's apparent decision to go on the
offensive against the regime of King Hussein in Amman.
    During the past 24 hours Syria has reportedly sharply increased its
military buildup in an area only five miles from the Jordanian
frontier. Arab diplomats have put the total Syrian strength there at
well over 30,000 troops and 1,000 tanks. Part of these forces were
drawn from the Syrian troops which were serving in Lebanon as an Arab
League peace-keeping force, the diplomats reported.
    President Hafez Assad signed the 20-year treaty of friendship and
cooperation with the Soviet Union during a visit to Moscow in October.
    Syrian officials said the treaty will help their country establish
balance of power with Israel, and enable the U.S.S.R. to strike a
balance with the United States in the Middle East.
    Analysts here believe Moscow may find itself caught in the conflict
between the two Arab states. While it now regards Syria as a close
Middle East ally, the Soviet Union, the analysts said, has shown
interest in retaining the friendship of King Hussein.
    The monarch was due to visit Moscow early in October but the trip
had to be called off because of the outbreak of the war between Iraq
and Iran .
    Jordan has stood firmly on Baghdad's side in the war, while the
Soviets adopted a non-committal attitude.
    According to most educated opinions here, the Soviets were not
consulted in advance on the Syrian military moves against Jordan.
    However, Moscow might find itself obliged to pay lip service to the
Syrian position in view of the declaration two days ago by a U.S.
spokesmen warning Damascus against taking military action against
Jordan, analysts said.
    
ny-1201 1621est
**********

a229  1324  01 Dec 80
AM-War Rdp,420
Iran Says It Has Cash To Fight For Six Months
By STEVE K. HINDY
Associated Press Writer
    BEIRUT, Lebanon (AP) - A top Iranian official said Monday that Iran
could fight Iraq for six months on available cash reserves, without
access to money frozen in U.S. banks, gold reserves or income from oil
exports.
    While Iranian and Iraqi forces reported battles with helicopter
gunships, paratroops and artillery, Central Bank Governor Ali Reza
Nobari told the Iranian people they ''should not worry,'' the official
Pars news agency reported.
    The agency quoted Nobari as saying Iran had cash reserves of $6
billion, and that ''if we cannot, for political reasons, free our
blocked reserves, or sell a drop of oil, and have no other exports,
this reserve could last us for six months.''
    ''Of course, this is impossible, for we have other exports, plus the
fact that we have gold reserves,'' he said.
    Nobari's comments appeared to dim U.S. hopes that the cost of the
war might cause Iran to act quickly to free the hostages whose capture
prompted the United States to freeze $8 billion in Iranian assets
held in U.S. banks.
    The 52 American hostages, in their 394th day of captivity Monday,
have not yet been transferred to the custody of the Iranian government
by the militants, Behzad Nabavi, Iran's minister of state for
executive affairs, was quoted as saying.
    Nabavi's remarks in the Tehran daily Ettelat followed reports last
week that the government had taken custody of the hostages.
Negotiations are under way between the government of Iran and the
United States for release of the hostages.
    On the war front, Iran and Iraq made paratroop and helicopter
gunship attacks on each other's positions in the foothills of the
Zagros Mountains that command road routes to Baghdad, 100 miles to the
west.
    In Iran's embattled Khuzistan province in the south, Iranian forces
in the capital Ahwaz, the oil refining city of Abadan and the town of
Susangerd reported exchanges of artillery and tank fire with Iraqi
troops.
    Iran said 60 Iraqis were either killed or wounded in the actions and
that four Iranians were killed Sunday and Monday. Iraq claimed 114
Iranians were killed on all fronts Monday, and reported 18 Iraqi
deaths.
    Cuban Foreign Minister Isidoro Malmierca ended a week of talks with
leaders in Tehran and headed for Baghdad, Tehran Radio said.
    Malmierca, representing the 94-nation non-aligned movement, has been
shuttling between the two capitals on a peace mission.
    
ap-ny-12-01 1624EST
**********

a232  1354  01 Dec 80
AM-Border,420
Jordan's Soldiers Say Border Situation Dangerous
With Syria-Jordan
By ALEX EFTY
Associated Press Writer
    RAMTHA, Jordan (AP) - Jordanian tanks were on the crests of the
rolling hills on all sides at this tense border post Monday, and the
barrels of their guns pointed north toward Syria. ''The situation is
very dangerous and anything might happen any minute,'' a young
Jordanian colonel said.
    ''There are thousands of troops massed on both sides of the border
and fighting may even break out by accident in a situation like
this,'' added the colonel, who did not want to be identified.
    Jordan moved troops to the border to counter a buildup in which
Syria was reported to have doubled its forces to 50,000 troops and
1,200 tanks over the weekend. Syria has accused Jordan of backing the
Moslem Brotherhood in attempts to overthrow the government of
President Hafez Assad, and the two Arab neighbors have taken opposing
sides in the Iran-Iraq war.
    High-flying jets left vapour trails in the clear blue sky as they
flew backjets are Israeli, they are anxious to know what is
happening. But some of them may also be Syrian,'' the colonel said.
    Ramtha is the main border crossing post between Syria and Jordan,
roughly halfway along the 120-mile highway linking Amman and Damascus.
It is also only 30 miles east of the point where the borders of
Israel, Syria and Jordan meet in the Israeli-occupied Golan Heights.
    ''I hope nothing happens, for if anything does happen it will be
very bad for all Arabs and the only people to benefit will be our
enemies,'' the colonel said
    Jordanian troops manning antiaircraft guns near the border watched
the jets high overhead but made no attempt to fire on them.
    Their inactivity, despite apparent violation of Jordanian airspace,
was explained by Jordan's Prime Minister Mudar Badran during a speech
before Jordan's parliament.
    ''It would be incomprehensible for any Arab force to attack another
Arab force,'' Badran declared.
    But he said if anyone attacks Jordan, ''then Jordan will be
transformed into a ball of fire that will consume whoever attempts
such a thing.''
    As the main crossing point on the Syrian-Jordan border, Ramtha has
become the focal point of troop concentrations on both sides.
    But despite the troop buildups, traffic continued to flow both ways
and it was business as usual at the crossing point. Syrian and
Jordanian customs and immigration officials worked side by side to
process travelers and traffic.
    
ap-ny-12-01 1654EST
**********

a245  1501  01 Dec 80
AM-US-Hostages,50
BULLETIN
    WASHINGTON (AP) - Deputy Secretary of State Warren M. Christopher is
flying to Algeria on Monday night with the U.S. response to Iran's
request for clarification on terms for freeing the American hostages,
the State Department said.
    
ap-ny-12-01 1800EST
**********

a246  1509  01 Dec 80
AM-US-Hostages, a245,1st Add,70
URGENT
WASHINGTON: Department said.
    There, Christopher will meet with Algerian Foreign Minister Mohamed
Benyahia and Algerian officials who have been serving as
intermediaries between the United States and Iran.
    The Americans will be prepared to answer any questions the Algerians
might have regarding the U.S. position, David Nall, a department
spokesman, said.
    
ap-ny-12-01 1809EST
**********

a247  1512  01 Dec 80
AM-US-Hostages, a245-a246, 2nd Add,100
WASHINGTON: spokesman said.
    Christopher conferred over the weekend with President Carter at Camp
David, Md., about the U.S. response to Iran's request for
clarification, brought here by Algerian emissaries last Tuesday.
    The contents of the U.S. message were not disclosed.
    Iran's terms, announced on Nov. 2, call for an American promise not
to interfere in the country's internal affairs, cancellation of all
American claims against Iran, release of more than $8 billion in
impounded Iranian assets and return of the wealth of the late Shah
Mohammad Reza Pahlavi.
    
ap-ny-12-01 1812EST
**********

n068  1557  01 Dec 80
 
AM-IRAN
U.S. Delegation to Go to Algiers With Proposals on Hostage Crisis
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Deputy Secretary of State Warren M. Christopher is
flying to Algiers Monday night, carrying the latest American
proposals on resolving the hostage crisis with Iran, State Department
officials said Monday.
    American officials said that Christopher and a high-level delegation
will remain in Algeria for as long as necessary to brief Algerian
intermediaries thoroughly on the American ''clarifications'' sought
by Iran to the original American plan which Christopher conveyed to
Iran on Nov. 10 and 11.
    There is no way of knowing, officials said, if the latest mission
will succeed in ending the standoff that has arisen since Iran first
made public its four conditions for the release of the 52 American
hostages on Nov. 2.
    As for the hostages, Prime Minister Mohammed Ali Rajai of Iran was
reported by NBC Monday as having told an NBC producer in Tehran that
the Iranian government had taken control of the hostages from the
militants. Similar reports circulated in Tehran last week but because
they were confirmed and denied by various spokesmen, there was
confusion about their accuracy.
    Another ranking Iranian official, Behzad Nabavi, who heads the
government commission dealing with the hostage issue, said in an
interview for a Tehran newspaper that the hostages ''have not been
handed over completely by the students.''
    Carter administration officials, who have long seen a government
takeover of the hostages as a step toward their release, tended to
view the Rajai and Nabavi statements generally as encouraging, but
the State Department spokesman, John H. Trattner, said there had not
been any official confirmation so far through the Swiss government,
which represents American interests in Iran.
    But a senior official said that the ''accumulation'' of reports from
Tehran indicated the government, in line with a decision announced by
Ayatollah Ruhollah Khomeini on Nov. 3, is moving to take the hostages
under its control.
    The official speculated that the confusion may stem from a loose
line of demarcation between the student militants and the
government's Revolutionary Guards and suggested that both groups may
be sharing responsibility for the hostages in this period.
    Christopher, officials said, is being accompanied by the same group
that went to Algiers with him on Nov. 10 and 11: Deputy Secretary of
Treasury Robert Carswell; Harold H. Saunders, assistant secretary of
state for Near Eastern and South Asian affairs; Roberts Owen, the
State Department legal adviser; Arnold L. Raphel, a special assistant
to Secretary of State Edmund S. Muskie; Douglas A. Dworkin, a special
assistant to Christopher and a French interpreter and clerical staff.
    The Christopher delegation will meet in Algiers with Foreign
Minister Mohammed Seddik Benyahia of Algeria and the group that
conveyed the original American response to Iran - the head of
Algeria's national bank and Algeria's ambassadors to Iran and the
United States.
    On Nov. 2, after weeks of debate, the Iranian parliament issued a
statement listing four conditions for the release of the Americans: a
pledge by the United States of non-intervention in Iran's affairs;
the unfreezing of Iran's assets in the United States; cancellation of
all claims against Iran and confiscation and transfer to Iran of the
property of the late shah.
    The American response was not made public, but officials said it
accepted the demands ''in principle'' as a basis for resolving the
crisis. On specifics, however, the United States indicated legal
problems had prevented the canceling of all claims unilaterally and
the confiscation the shah's property.
    The Algerians spent about a week in Tehran explaining the American
response to Iranian authorities. Then, the Iranians complained that
the United States had evaded a direct ''yes'' or ''no'' to their
demands and sent the Algerians to Washington last week with a request
for ''clarifications.''
    Christopher and his group conferred oission. Muskie has
acknowledged that the American reply contains some ''maybes'' but
American officials said they were still hopeful that the crisis could
be resolved.
    Top aides still believed that Iran has decided in principle to end
the crisis, but that the Iranian authorities have little bargaining
room, given the peremptory tone of the four demands.
    Monday, on the ''Today'' show, Rajai said, ''I'd like to assure the
American people that the hostages are in excellent health and they
should not be overly concerned.
    ''The Iranian people have a long tradition of fairness toward their
prisoners of war and this tradition still stands,'' he said. This was
the first time the hostages have been called ''prisoners of war.''
    ''Now that the parliament has directed us as a newly formed
government to take control of the hostages, I think a new dimension
has been added to the issue, but I'd like to point out that this will
not make a substantial difference,'' he said.
    NBC said that Rajai told the NBC producer that the government had
control of the hostages.
    Nabavi, in his interview in the newspaper, Etela'at, said the
original American reply to the four conditions ''was not explicit and
complete.''
    He said Iran had asked for clarification ''because America has not
explicitly said that it has, for example, accepted the first
condition or the third one, or, for example, it has rejected the
third one.''
Eds, it's Roberts (cq) Owen in 9thgraf.
    
ny-1201 1900est
**********

a254  1616  01 Dec 80
AM-US-Iran,580
URGENT
Eds: This story contains material from AM-US-Hostages, a245, a246 and
a247.
By LAWRENCE L. KNUTSON
Associated Press Writer
    WASHINGTON (AP) - Deputy Secretary of State Warren M. Christopher
was sent to Algeria Monday night with the U.S. response to Iran's
request for clarification on terms for freeing the American hostages.
    The mission appeared to keep alive the give-and-take with Iran over
the 52 Americans, held captive for nearly 13 months. But there was no
indication of a breakthrough in the efforts to gain their release.
    In Algiers, Christopher will meet with Algerian Foreign Minister
Mohamed Benyahia and Algerian officials who have been serving as
intermediaries between the United States and Iran.
    State Department spokesman David Nall said Christopher and his
delegation will be prepared to answer any questions the Algerians
might have regarding the U.S. position.
    Christopher conferred over the weekend with President Carter at Camp
David, Md., about the U.S. response to Iran's request for
clarification, brought here by Algerian emissaries last Tuesday.
    The contents of the U.S. message were not disclosed.
    Iran's terms, announced Nov. 2, call for an American promise not to
interfere in the country's internal affairs, cancellation of all
American claims against Iran, release of more than $8 billion in
impounded Iranian assets and return of the wealth of the late Shah
Mohammad Reza Pahlavi.
    John Trattner, the department spokesman, dismissed any suggestion
that the United States was engaged in humilitating negotiations with
violators of international law.
    ''Obviously, when you have a hostage situation you have to work to
resolve it,'' he said. ''That's what we've been doing. We'll worry
later about whether there is humilitation involved. I don't think
there is.''
    Earlier Monday, a ranking White House official said the outcome of
the hostage situation remains impossible to predict and the domestic
political situation in Iran is the crucial factor.
    ''The question continues to reside in the political situation
domestically in Iran,'' the official said. ''And I don't know if there
is any way to predict if, how, when they will be able to resolve
it.''
    President-elect Ronald Reagan was asked Monday, meanwhile, about
reports that an Iranian official suggested Iran might wait until
Reagan was inaugurated before releasing the hostages. ''Well, he's
pretty foolish,'' Reagan said.
    The White House official, who asked not to be identified by name,
said the United States is trying to provide clarification on points
raised by Iran about the U.S. response to Iran's four conditions for
the release of the hostages.
    He said Iran has enough individuals who are familiar with the
American political situation ''to obtain an independent assessment of
what it is and what is not possible under American laws and the
Constitution.''
    The United States has indicated to Iran that it may not be fully
able to comply with all of Iran's demands because of legal
complications.
    ''Clearly political power in that country is divided amongst
individuals and factions and we've seen all along that they have to
reach a preconsensus to deal with almost anything,'' the White House
official said.
    ''We have a fair and very reasonable position,'' he said.
    ''You can't sit around here and guess about these matters of their
internal political situation,'' he said. ''We have to proceed in a
fair and reasonable manner consistent with our laws and our interests
in the area and see what comes of it.''
    
ap-ny-12-01 1916EST
**********

a256  1622  01 Dec 80
AM-War Rdp, INSERT, a229,110
BEIRUT: INSERTS 3 new grafs after 10th graf, Iran said...Iraqi
deaths, to update with offer to mediate.
    Egyptian President Anwar Sadat's League of Arab and Islamic People
called on Iraq and Iran to stop fighting and accept Islamic
arbitration for settling their border dispute, according to a
statement carried by Cairo's official Middle East News Agency.
    The league, formed by Sadat last month to rival the Arab League
after it was moved from Cairo to Tunis to protest the Camp David peace
accords between Egypt and Israel, said it was ready to send a
mediation team to Baghdad and Tehran immediately.
    Iran, which is Moslem but not Arab, and Iraq broke diplomatic
relations with Egypt after its signed the peace treaty with Israel in
March 1979.
    Cuban Foreign, 11th graf
    
ap-ny-12-01 1922EST
**********

n503  2201  01 Dec 80
 
BC-JORDAN-12-02
    By Henry Trewhitt
    (c) 1980 The Baltimore Sun (Field News Service)
    WASHINGTON - The State Department, eyeing the prospect of a
Syrian-Jordan war, says the administration is considering delivery of
spare parts and ammunition to King Hussein of Jordan.
    ''We are watching the situation closely,'' spokesman John H.
Trattner said Monday. ''And we call on all parties to exercise
restraint.''
    Trattner and other officials left no doubt that the administration
in this case has cast aside the neutrality it has professed regarding
tensions in the Persian Gulf farther east. Jordan, Trattner pointed
out, ''is an old friend, with a long military supply relationship.''
    But U.S. diplomats were busy trying to discourage both sides from
colliding with the troops that now confront each other at their
common border. The problem from the U.S. standpoint, one official
said, was that ''the threat clearly comes from Syria, not from
Jordan.''
    There was some hope that the Soviet Union, Syria's principal patron
and arms supplier, also was advising caution. Vasily V. Kuznetzov,
the Soviet first deputy premier, was reported in Damascus on Monday
for discussions with President Hafez el Assad. Prince Abdullah, the
commander of the Saudi Arabian national guard, reportedly had
undertaken a similar mission.
    But tempers are running high in both Amman and Damascus. The armies
of the two countries fought most recently in 1970, with a Jordanian
victory, after King Hussein expelled Palestinian guerrillas from
Jordan in bloody fighting.
    This time the chronic tension began to rise when King Hussein
declared his support for Iraq in the Iraq-Iran war. That support so
far has consisted, apart from rhetoric, of providing non-military
supplies to Iraq by overland transport after the war closed Iraq's
ports.
    President Assad also has accused Jordan of providing training areas
for the militant Moslem Brotherhood, which opposes the Assad
government.
    American officials appeared moderately confident that Jordan would
win a conflict if Syria starts one. But they also clearly hoped that
full-scale fighting will not develop.
    If it does, inter-Arab rivalries again will project a war near the
Syrian and Jordanian borders with Israel, with all of the explosive
potential that implies.
    ''Surely,'' an American diplomat said of Assad, ''he won't do it.''
    ENDIT TREWHITT
    
ny-1202 0104est
**********

a014  2255  01 Dec 80
PM-War Prospects, Bjt,480
What Caused Syria-Jordan Crisis? What Could It Mean?
An AP News Analysis
By NICOLAS B. TATRO
Associated Press Writer
    BEIRUT, Lebanon (AP) - What caused the latest crisis in the Middle
East, the threat of war between Syria and Jordan, and what could
happen? Here is an analysis of the situation, in question-and-answer
format.
    Q-What triggered the dispute?
    A-Jordan's King Hussein was host to an Arab summit last week that
Syrian President Hafez Assad wanted postponed. Syria boycotted the
conference, which ended with a resolution supporting Iraq's ''rights''
in its war with Iran. This angered Syria.
    Q-How is the conflict between Syria and Jordan connected with the
Persian Gulf war?
    A-King Hussein is a vociferous supporter of Iraq, offered it
military support and organized a supply line to Iraq through the
Jordanian port of Aqaba. Assad, a longtime foe of the Iraqi regime,
has reportedly given aid to Iran, laying himself open to charges of
being a traitor to Arab nationalism, since the Iraqis are Arabs and
the Iranians are not.
    Q-What are the roots of the conflict?
    A-Both nations want to take the lead in resolving the Arab-Israeli
conflict and each has the backing of a rival superpower. Syrian
newspapers have focused on reports that Hussein was laying the
groundwork for a go-it-alone, Egyptian-style peace initiative with the
help of Ronald Reagan's administration. Syria wants the Soviet Union
at the negotiating table to represent Arab interests.
    Q-Are there other causes?
    A-Syria claims Jordan and Iraq aided the Moslem Brotherhood, which
is outlawed in Syria, in a wave of terror against Assad's government.
Jordan denies this and charges that Syria is causing a crisis to
cover up unrest at home.
    Q-What threats would war between Syria and Jordan pose?
    A-Diplomats in Beirut suggest that Israel might strike at southern
Syria from the Golan Heights. Iraq would be duty-bound to take
Jordan's side. Syria might call on the Soviet Union for help. Jordan
has already asked the United States for arms.
    Q-Is a war likely?
    A-Diplomats say there is a 50-50 chance because Assad has gone so
far, deploying 50,000 troops and 1,200 tanks along the 186-mile
border. Facing them are about 30,000 Jordanian troops and hundreds of
tanks, and Hussein is mobilizing 30,000 reservists. The two armies
stand only six miles apart and are concentrated near the Syrian town
of Deraa and the Jordanian town of Ramtha.
    Q-Have the two countries fought before?
    A-Yes, in September 1970 Syria sent an armored column into Jordan to
aid Palestinian guerrillas who were the target of a crackdown by King
Hussein's Bedouin army. Under pressure from the Soviet Union and the
United States, Assad, who was then defense minister, did not supply
air cover for the column, and the Jordanians drove the Syrians back
across the border.
    
ap-ny-12-02 0154EST
**********

a020  0006  02 Dec 80
PM-Italian Aid, Bjt,430
Congress Speeds Earthquake Aid
Eds: Domenici-DeConcini news conferenced scheduled 8:45 a.m. EST;
morning lead expected
By JANET STAIHAR
Associated Press Writer
    WASHINGTON (AP) - Congress, heeding a Carter administration plea to
help a friend in need, is moving swiftly to send $50 million to
earthquake victims in southern Italy. One U.S. official said even that
much money may not be enough.
    The disaster relief bill was rushed through the House with no
opposition Monday as Democrats and Republicans put aside partisan
differences in their lame-duck session to beat Friday's scheduled
adjournment.
    Sens. Pete V. Domenici, R-N.M., and Dennis DeConcini, D-Ariz., were
adding their support today as the Senate Foreign Relations Committee
prepared to whisk the bill to the floor.
    The legislation was sponsored in the Senate by Massachusetts
Democrat Edward M. Kennedy and strongly supported by President Carter,
who called the quake ''the worst natural disaster to strike Western
Europe in half a century.''
    The bill authorizes $50 million for relief, rehabilitation and
reconstruction assistance for victims of the earthquake that struck a
remote part of southern Italy Nov. 23.
    Joseph A. Mitchell, director of the Office of U.S. Foreign Disaster
Assistance, said $3.5 million in immediate U.S. relief already has
gone to Italy.
    Testifing before the House Foreign Affairs Committee, which approved
the bill only hours before the House acted Monday, Mitchell said the
total U.S. aid would be about $53.5 million. But that may not be
enough once the loss of life and property is calculated, Mitchell
added.
    The earthquake left more than 3,000 dead, 2,000 missing, 8,000
injured and 200,000 homeless, said Richard N. Gardner, U.S. ambassador
to Italy who came to Capitol Hill to recount the tragedy. He pledged
to return to Italy immediately and be ''personally responsible'' that
the aid reaches its destination.
    ''The human suffering - from the anguish of families buried under
rubble to the misery of homeless survival in the face of cruel winter
storms - is incalculable,'' Gardner said.
    ''Italy has stood with us on issues of common defense, from the
strengthening of NATO to a united response on events in Afghanistan
and the taking of U.S. hostages in Iran,'' he added. ''The Italians
have a saying that translates: 'You know a real friend in time of
need.' ... I respectfully contend that we must stand by her in this
time of need.''
    Gardner said other nations, private relief groups and others also
have responded with money and goods.
    Mitchell said most of the $50 million provided by the disaster
relief bill will be for long-term reconstruction of houses and other
structures. About $6.5 million will go for more immediate aid such as
food, medicine, shelter and other basic needs for survival, he said.
    
ap-ny-12-02 0305EST
**********

a021  0018  02 Dec 80
PM-Syria-Jordan, Bjt,640
Syria, Soviet Exchange Treaty Ratifications
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - Syria and the Soviet Union exchange treaty
ratifications today amid rising fears of war with Jordan. But so far
only angry words and not bullets were being exchanged by the two Arab
neighbors.
    Soviet First Vice President Vasily V. Kuznetsov flew from Moscow for
the ratification ceremony and was expected also to discuss the latest
Middle East crisis with President Hafez Assad.
    The documents they were exchanging ratify the 20-year friendship and
cooperation treaty Assad signed with President Leonid I. Brezhnev in
Moscow on Oct. 8. The Soviets are the Syrians' chief arms supplier,
and the pact is viewed as another attempt by the Kremlin to bolster
regimes friendly to it in the Middle East and offset American
influence in the area.
    The U.S. government supports Jordan's King Hussein, and Carter
administration officials said they were preparing to fill his request
for emergency military spare parts and ammunition to help his forces
counter the 50,000 Syrian troops and 1,200 tanks massed on his
border.
    Hussein has deployed an estimated 30,000 troops and hundreds of
tanks on his side of the frontier.
    ''The situation is very dangerous and anything might happen at any
minute,'' a Jordanian colonel said Monday at the main border crossing
point of Ramtha, about halfway along the 120-mile highway between
Damascus and Amman and 30 miles east of the Israeli-occupied Golan
Heights.
    ''There are thousands of troops massed on both sides of the border
and fighting may even break out by accident in a situation like
this.''
    High-flying jets flew back and forth over the border on
reconnaissance missions.
    ''Some of these jets are Israeli. They are anxious to know what is
happening. But some of them may also be Syrian,'' the colonel said.
    However, the troop buildup did not affect traffic back and forth
across the border at Ramtha. Syrian and Jordanian customs and
immigration officials worked side by side, and the Syrian and
Jordanian flags flew side by side on top of the border post.
    A customs official said traffic was normal.
    Saudi Arabia's deputy prime minister and national guard commander,
Prince Abdulla Bin Abdul-Aziz, had been expected to visit Amman Monday
on a mediation mission but returned home after a three-hour meeting
with Assad in Damascus.
    Abdullah said he believed the tension between Syria and Jordan was
receding, the Saudi state radio reported. But observers in Damascus
said he delivered ''threats'' to Assad that apparently negated his
peacemaking efforts.
    What Saudi Arabia threatened was not reported, but it is a major
financial supporter of Syria.
    Jordan's prime minister, Mudar Badran, told his Parliament in Amman,
an attack by one Arab country on another ''would be
incomprehensible'' and Jordan would ''not shoot first.''
    ''But we shall defend our country against whatever attack or
whichever enemy,'' he declared. ''If anyone attacks Jordan, then
Jordan will be transformed into a ball of fire that will consume
whoever attempts such a thing.''
    Badran reiterated Hussein's rejection of Syrian charges that Jordan
was providing training camps for extremists of the fundamentalist
Moslem Brotherhood, which Assad blames for a 16-month-old campaign of
terror against his regime.
    The prime minister said the real reason for the Syrian buildup was
Jordan's support of Iraq in its war against Iran, which Syria backs.
Syria began the border buildup 10 days ago, just before an Arab League
summit meeting in Amman which Assad boycotted so he would not have to
take a stand for or against resolutions supporting Iraq.
    
ap-ny-12-02 0317EST
**********

a024  0050  02 Dec 80
PM-US-Iran,
Christopher Shuttles Back to Algeria in Hostage Talks
Eds: Arrival time in Algiers uncertain; prenoon top expected
Laserphoto WX4
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - Deputy Secretary of State Warren M. Christopher is
flying to Algeria with the latest U.S. response to Iran's terms for
freeing the American hostages.
    The mission, Christopher's second in three weeks, keeps open a
channel of communication regarding the 52 Americans. But there is no
immediate indication of a breakthrough on gaining their release after
almost 13 months in captivity.
    In Algiers, Christopher is to meet with Foreign Minister Mohammad
Benyahia and Algerian diplomats who have shuttled between Tehran and
Washington as intermediaries.
    Christopher and other U.S. officials will be prepared to answer any
questions the Algerians might have regarding the U.S. position, State
Department spokesman David Nall said Monday night.
    Christopher conferred over the weekend with President Carter at Camp
David, Md., about the U.S. response to Iran's request for
clarification, brought here last week by Algerian emissaries.
    The contents of the U.S. message were not disclosed, but it is known
that the administration has tried to convince authorities in Tehran
that there are major legal and technical complications to the terms.
    The Washington Post quoted unidentified sources today as saying the
message represents no change in the basic American position carried
to Algeria by Christopher three weeks ago. The latest response, the
paper said, is merely a more detailed reiteration of a stance that has
not changed ''in broad outline'' since an unsuccessful round of
negotiations with Iran last spring.
    Iran's demands, set by its parliament Nov. 2, call for an American
promise not to interfere in the country's internal affairs,
cancellation of all American claims against Iran, release of more than
$8 billion in impounded Iranian assets and return of the wealth of
the late Shah Mohammad Reza Pahlavi.
    State Department spokesman John Trattner dismissed on Monday any
suggestion that the United States is engaged in humilitating
negotiations with violators of international law.
    ''Obviously, when you have a hostage situation you have to work to
resolve it,'' he said. ''That's what we've been doing. We'll worry
later about whether there is humiliation involved. I don't think there
is.''
    President-elect Ronald Reagan, meanwhile, said it would be ''pretty
foolish'' if Iran waited until after his Jan. 20 inaugural to try to
get better terms. His comment was in response to a report from Tehran
that an Iranian official had suggested such a delay.
    Earlier Monday, a ranking White House official said the outcome of
the hostage situation remains unpredictable and the domestic political
situation in Iran is the crucial factor.
    ''Clearly political power in that country is divided amongst
individuals and factions and we've seen all along that they have to
reach a preconsensus to deal with almost anything,'' he said. ''You
can't sit around here and guess about these matters of their internal
political situation,'' he said. ''We have to proceed in a fair and
reasonable manner consistent with our laws and our interests in the
area and see what comes of it.''
    
ap-ny-12-02 0350EST
**********

a039  0240  02 Dec 80
PM-Iran-Iraq,320
URGENT
Iraq Claims Preparations for Final Assault
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq said today its forces were poised for a
''final assault'' on the three main cities of Iran's oil-rich
Khuzistan Province.
    A spokesman for the Iraqi command said his nation's infantry and
armor were now in advantageous positions for a ''final assault to
overrun'' Khuzistan's capital of Ahwaz, the giant oil refining complex
of Abadan and the army garrison town of Dezful.
    ''Once the political leadership of Iraq issues the order, forces in
the battlefield are ready for, and capable of decisive action in
Ahwaz, Abadan and Dezful,'' the spokesman said.
    Abadan, on the eastern shore of the Shatt al-Arab estuary, has been
besieged for the past six weeks. Last week, Iran claimed it broke the
siege and Iranian President Abolhassan Bani-Sadr reportedly made a
daring trip that included a motorcycle tour of Iranian frontline
bunkers to underscore the claim.
    Iraq maintains artillery positions three to six miles west of Ahwaz,
75 miles north of Abadan, and 10 to 15 miles west of Dezful, which is
70 miles north of Ahwaz. The three cities control Iran's oil refining
operations plus distribution pipeline networks from the south to rest
of the country.
    Iraqi Foreign Minister Saadoun Hammadi said the 72-day-old conflict
could be brought to an end by an agreement to stop shooting,
negotiate a delineation of the border and then withdraw from each
other's off-shore and territorial boundaries.
    ''This is the only practical and reasonable solution,'' Hammadi said
in a letter to the foreign ministers of European Common Market
countries whose leaders are meeting in Luxembourg. The official Iraqi
news agency reported excerpts from the letter.
    Iraq has been claiming a 124-square-mile area plus the entire Shatt
al-Arab waterway as an integral part of its territory. About 60 miles
of the waterway, Iraq's only waterway to the Persian Gulf, divided
pre-war Iran and Iraq.
    
ap-ny-12-02 0540EST
**********

a047  0328  02 Dec 80
PM-US-Mideast,340
Decision Near on U.S. Military Supplies for Jordan
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - The Carter administration is preparing to supply
Jordan with new shipments of military spare parts and ammunition to
counter a buildup of Syrian troops and tanks along the Jordanian
border, officials say.
    The move is designed to bolster King Hussein's forces in the event
of a conflict that one U.S. official described to The Associated Press
as more than likely.
    ''If the crunch comes, it probably will be the result of accident or
miscalculation,'' said the official, who rated chances of an outbreak
as better than 50-50.
    With tensions mounting over the weekend, Jordan submitted two or
three lists of arms as well as spare parts, with additional requests
expected this week.
    The parts requested are for jet planes, tanks and other military
gear supplied by the United States as it modernized the Jordanian army
and air force through the 1970s.
    ''It's like Christmas shopping lists,'' the official, who asked not
to be identified, said Monday. ''It's a matter of getting some
priorities down.''
    Deputy Secretary of State Warren M. Christopher told reporters,
however, that he hoped for an easing of tensions that would make it
unnecessary to act on Jordan's request.
    ''From the beginning, our positon has been that the war between Iraq
and Iran should be brought to a quick conclusion and that it should
not be proliferated or extended,'' he said. ''Any tensions between
Syria and Jordan would be a very unwelcome extension of that.''
    But another U.S. official, more pessimistic, said rising rhetoric
makes it hard to see how Syrian President Hafez Assad ''is going to
get out of this without a confrontation.''
    Saudi Arabia has tried to intercede with Syria, sending Prince
Abdullah to Damascus over the weekend for talks with Assad and with
Yasser Arafat, chairman of the Palestine Liberation Organization.
    Meanwhile, an Israeli defense group is due in Washington on Thursday
for strategic talks with American officials.
    
ap-ny-12-02 0628EST
**********

a999  0428  02 Dec 80
. . .n, 1st Ld, Precede Washington,a024,100
URGENT
Eds: Christopher arrives in Algiers, new info, editing grafs 1-4
    ALGIERS, Algeria (AP) - Deputy Secretary of State Warren Christopher
arrived in Algiers today carrying the latest American response to
Iran's terms for freeing the 52 American hostages.
    Christopher was accompanied by Redha Malek, Algeria's ambassador to
Washington, and a delegation of other American officials.
    The deputy secretary is scheduled to meet with Algerian Foreign
Minister Mohamed Benyahia to relay the U.S. reply. Algeria has been
acting as intermediary in the negotiations between the United States
and Iran.
    There was no immediate indication of a breakthrough on gaining the
release of the hostages after nearly 13 months of captivity.
    Christopher and, 4th graf a024
    
ap-ny-12-02 0727EST
**********

a093  0737  02 Dec 80
PM-US-Iran, 2nd Ld, a054,110
Eds: Christopher arrival statement, meeting with Algerians today,
other delegation members in new grafs 2,4
    ALGIERS, Algeria (AP) - Deputy Secretary of State Warren Christopher
arrived in Algiers today carrying the latest American response to
Iran's terms for freeing the 52 American hostages.
    ''We hope, or we expect, to have good talks with the Algerians to
whom we are very grateful,'' Christopher told reporters in a brief
arrival statement.
    Christopher was accompanied by Redha Malek, Algeria's ambassador to
Washington, and a delegation of other American officials.
    The group was greeted by Abdelkrim Gheraib, Algeria's ambassador to
Tehran, who told reporters the American and Algerian officials would
probably meet later today.
    The deputy: 3rd graf
    
ap-ny-12-02 1037EST
**********

a094  0739  02 Dec 80
PM-US-Iran, 1st add a024 original,40
ALGIERS, Algeria:of it.''
    Among the officials traveling with Christopher are Harold Saunders,
assistant secretary of state for Mideast Affairs; Robert Carswell,
assistant secretary of the Treasury and Robert Owen, of the State
Department legal staff.
    
ap-ny-12-02 1039EST
**********

n015  0758  02 Dec 80
 
PM-HOSTAGES
By ALISON MUSCATINE
Washington Star Service
    WASHINGTON - Deputy Secretary of State Warren M. Christopher arrived
in Algiers Tuesday to deliver a ''clarification'' of the U.S.
position on Iranian demands for release of the 52 American hostages.
    Christopher was accompanied by Redha Malek, Algeria's ambassador to
Washington, and a delegation of other U.S. officials.
    The deputy secretary is scheduled to meet with Algerian Foreign
Minister Mohamed Benyahia to relay the U.S. reply. Algeria has been
acting as intermediary in the negotiations between the United States
and Iran.
    There was no immediate indication of a breakthrough on gaining the
release of the hostages after nearly 13 months of captivity.
    Just before departing for Algeria, Christopher said the negotiations
process ''is a little bit like trying to thread a needle in the dark.
... What we will be presenting in Algiers to the Algerians for
transmission to the Iranians are essentially explanations,
clarifications and elaborations of our basic position.''
    U.S. officials said the message makes no new concessions.
    Along with the clarifications, the United States is suggesting to
Iran that an international commission be set up to handle any legal
disputes arising from negotiations to free the hostages, according to
informed sources.
    Christopher is being accompanied by the same group that went to
Algiers with him Nov. 10-11: Deputy Treasury Secretary Robert
Carswell; Harold H. Saunders, assistant secretary of state for Near
Eastern and South Asian affairs; Roberts Owen, the State Department
legal adviser; Arnold L. Raphel, a special assistant to Secretary of
State Edmund S. Muskie; Douglas A. Dworkin, special assistant to
Christopher, and a French intepreter and clerical staff.
    The delegation will meet with Benyahia and the group that conveyed
the original U.S. response to Iran - the head of Algeria's national
bank and Algeria's ambassadors to Iran and the United States.
    Last week an Algerian delegation acting on behalf of Iran arrived in
Washington to request clarification of the U.S. response delivered by
Christopher in Algeria three weeks ago.
    According to knowledgeable sources, the Iranians were stern in
seeking a more concrete explanation of the U.S. position and had
doubts about legal obstacles the United States considers to exist in
meeting some conditions.
    President Carter met with senior advisers at Camp David, Md., during
the Thanksgiving holiday to prepare the statement which Christopher
will present to Algerian Foreign Minister Ben Yahir and his
delegation.
    Senior administration officials, buoyed by the possibility of a
solution to the crisis just one month ago, continue to explain the
impasse in the hostage crisis as a result of internal political
turmoil in Iran.
    ''The question continues to reside within the political situation
domestically in Iran,'' a senior official commented Monday. ''I don't
have any way of knowing if, how, or when they will resolve it.
Clearly the political power in that country is divided amongst
political factions and parties.''
    Publicly, Iran has been pressuring the United States to give
black-and-white answers to the demands.
    The Iranian authorities, according to sources, became skeptical when
they received the original U.S. response outlining difficulties in
trying to meet the Iranian demands.
    Of particular concern to officials here are potential legal problems
in meeting some demands, including unfreezing Iranian assets and
returning the shah's wealth., Iran has asked also that all private
claims against Iranian assets, which total between $8 billion and $12
billion, be dropped.
    Some recent reports from Tehran suggested that the Iranians
preferred to postpone a resolution of the crisis until
President-elect Reagan takes office.
    A senior White House official, asked to comment, replied, ''I don't
get that feeling, but there is no way to know with any certainty.''
    As for the hostages, Prime Minister Mohammed Ali Rajai of Iran was
reported by NBC Monday as having told an NBC producer in Tehran that
the Iranian government had taken control of the hostages from the
militants. Similar reports circulated in Tehran last week but because
they were confirmed and denied by various spokesmen, there was
confusion about their accuracy.
    
ny-1202 1101est
**********

n016  0810  02 Dec 80
 
BC-IRAN-CLAIM
(BizDay)
By STUART TAYLOR Jr.
c.1980 N.Y. Times News Service
    WASHINGTON - ''Name me the top 25 law firms in the country and we're
litigating against them,'' says Thomas G. Shack Jr., betraying
perhaps a hint of pride.
    Shack and his unimposing 12-lawyer Washington firm, Abourezk, Shack
& Mendenhall, are among the lead players in the largest international
claims litigation in history. Their client is the government of Iran
- ''not the ayatollah,'' Shack keeps telling interviewers.
    Ranged against Shack's firm and some 25 other American law firms
representing Iranian interests are more than 100 firms working for
Iran's adversaries, including the cream of the country's legal
establishment. They represent most of the largest banks in the United
States, and such industrial giants as General Motors, Xerox, Du Pont,
Westinghouse, Union Carbide, Lockheed and R.J. Reynolds Tobacco.
    These and other companies have brought more than 300 lawsuits
against Iran, its banks and its national oil company, contending that
Iran owes them a total of more than $7 billion for confiscated
properties, defaulted loans and broken contracts. New lawsuits are
filed almost daily.
    Most of this litigation began after President Carter froze Iranian
assets valued at $8 billion to $13 billion last Nov. 14 to punish
Iran for taking the hostages and to protect those with claims against
Iran from a threatened withdrawal of all Iranian funds from the
United States.
    The litigation has already generated millions of dollars in legal
fees, and in one lawyer's estimation is costing the banks,
corporations and others pressing claims against Iran more than a
million dollars a month in all. It has spawned a specialized
periodical called the Iranian Assets Litigation Reporter, and
enriched the jargon of the legal profession with such new phrases as
the ''Big Mullah Theory'' and the ''Black Hole Setoff.'' It has
spilled into Europe, and it may lumber along for decades, if it
proceeds as laboriously as the still-unfinished 20-year-old lawsuits
over Cuban assets frozen in the wake of the Communist takeover.
    For Shack, defending Iran from the ''onslaught of litigation'' that
has become linked with the hostage crisis has meant a year of 90-hour
workweeks as well as fame. The publicity has been a mixed blessing
for the 46-year-old lawyer, whose partner, James G. Abourezk, a
former Democratic senator from South Dakota, has also been active in
representing Iran.
    ''I get hate mail,'' Shack said. ''I get phone calls at 3 o'clock in
the morning. My children are sometimes abused by other children.''
    Shack sees no ethical or moral objection to representing Iran in the
assets litigation even though he says he does not ''condone'' the
taking of hostages.
    Dealing with a revolutionary government that has no relations with
the United States and is distracted by internal political ferment and
a war with Iraq is not always easy. Shack and other lawyers
representing Iranian interests have had to seek repeated
postponements of court proceedings because of the inability to get
documents, information and instructions.
    Projections based on the number of lawyers who are working on the
litigation full time, multiplied by average hourly billing rates,
indicate that Iran has paid more than a million dollars to defend the
assets litigation in the past year, including several hundred
thousand dollars to Shack's firm.
    The amounts paid by Iran apparently do not depend on the outcome of
the litigation. Iran pays its legal bills under a special Treasury
Department regulation creating an exception from Carter's order
freezing Iranian assets.
    Before Iran filled up his schedule, Shack's firm had a standard
corporate practice. ''I doubt that anybody would call us radical,''
he said.
    The ''radical'' label, however, has frequently been applied to the
clients of Leonard B. Boudin, the veteran New York civil liberties
lawyer and sometime professor who was hired by Iran's central bank,
the Bank Markazi, to represent it in the assets litigation.
    Boudin, known for his defense of such controversial political
activists of the left as Dr. Daniel Ellsberg, Dr. Benjamin Spock and
Phillip Berrigan, is also an old hand at representing foreign
governments in litigation, including Cuba.
    In London, the Bank Markazi is suing to free more than $3 billion of
its Eurodollar deposits held by foreign branches of five American
banks. It has challenged as an invasion of British sovereignty
Carter's effort to extend the freeze to such deposits, and has
asserted that the banks acted illegally when they took Bank Markazi
deposits to offset loans made to other Iranian banks.
    The ''Big Mullah Theory'' is lawyers' slang for the American banks'
legal justification for such efforts, as well as for the efforts by
claimants in the United States to impound assets of certain Iranian
companies or agencies to satisfy claims against other Iranian
companies or agencies.
    The argument is that all Iranian banks and other entities have been
made part of one ''big mullah,'' the Iranian government, by
nationalizations and other revolutionary actions, so that they can be
treated as one entity for purposes of offsetting deposits against
loans that are in default. (A mullah is an Iranian religious leader
of lesser rank than an ayatollah.)
    Some lawyers have also adopted the phrase ''Black Hole Setoff'' to
designate another theory, by which the banks have sought to justify
using Iranian deposits in one American bank to offset loans made not
only by that bank but also by other banks in syndication with it.
    
ny-1202 1113est
**********

a105  0846  02 Dec 80
PM-US-Iran, 2nd Ld, Insert, a093,50
ALGIERS, Algeria insert after 4th grafs: New 5th graf on State saying
pics showing Christopher crying on departure probably caused by wind
    Photographs and television shots of Christopher's departure Monday
night showed what looked like tears in his eyes. A State Department
spokesman said today that if Christopher had been shedding tears, it
was probably because it was windy at Andrews Air Force Base outside
Washington, where he took off for Algiers.
    The deputy: 5th graf
    
ap-ny-12-02 1146EST
**********

a107  0901  02 Dec 80
PM-US-Iran, 2nd Ld, Sub, a093,160
ALGIERS, Algeria SUB graf 10: The Washington xxx last spring wwith 4
new grafs
    A U.S. official said the message represented no change in the basic
American position carried to Algeria by Christopher three weeks ago.
''It is an attempt to respond fully to the Iranian request for
clarification of certain aspects of our postion,'' said the official,
who asked not to be identified by name.
    Christopher's delegation was ready to caution Iran that there may be
less American flexibility on the hostage issue after President Carter
leaves office, sources said. But they stressed that Christopher
carried no statement or message to that effect from President-elect
Ronald Reagan.
    One of the sticking points in reaching a negotiated settlement is
Iran's insistence that all American claims against the country be
canceled. This poses legal complications, since more than 200 lawsuits
have been filed in U.S. and foreign courts.
    Last month, the administration informed Iran through Algeria that it
had prepared legislation to have an international commission handle
the claims.
    Iran's demands,: 11th graf
    
ap-ny-12-02 1159EST
**********

n024  0933  02 Dec 80
 
BC-O'CONNOR-TELEVISION ADV07 2takes
(FOR RELEASE: SUN. DEC. 7)
By JOHN J. O'CONNOR
c. 1980 N.Y. Times News Service
    NEW YORK - For years, the news departments of the three commercial
networks have been struggling to expand their nightly half-hour
editions, to offer viewers more than the ''headline service'' that is
crammed into the about 22 minutes overseen currently by the Messrs.
Cronkite, Chancellor and Reynolds. Affiliate stations, however, have
been reluctant to turn over to the networks more of their
increasingly valuable local-programming time. The result has been an
ostensible stalemate, with the network people now talking
optimistically about the possibility of getting an extra 15 minutes
in the not-too-distant future.
    In fact, one network has already extended its news time - not in the
early evening but, taking an imaginative leap, in the late evening.
''ABC News Nightline'' does not compete with two other news programs.
It avoids the ''news in triplicate'' pattern of the early-evening
newscasts. Instead, it offers the viewer a legitimate choice at 11:30
p.m. NBC has Johnny Carson; CBS has an old movie or television rerun;
ABC has Ted Koppel anchoring a news report that is usually connected
with some event that happened that day. Much to the surprise of just
about everybody, the news production is doing quite well in the
crucial sector of audience ratings. When a big story is breaking,
''Nightline'' can knock Johnny Carson off his long-time top-rated
perch.
    ''Nightline'' began a little more than a year ago with the taking of
American hostages in Iran. On Nov. 8, 1979, ABC News introduced a
series of late-night news specials entitled ''The Iran Crisis:
America Held Hostage.'' Under the guidance of Jeff Gralnick, one of
the more ambitious and feistier of ABC News vice presidents, and with
Robert Siegenthaler as executive producer, the reports progressed
from updates on the hostage situation to broader essays on United
States-Iran relations and on the Islamic revolution. By last March,
it became evident that the Iranian story was going to drag on
interminably. Meanwhile, though, ABC News had proved that there is an
audience for news at that time of the night. A 20-minute edition of
''Nightline'' was established as a permanent news program that,
Monday through Thursday, would focus on one major story and would
include reporting from correspondents in the field as well as live
interviews conducted by Koppel. It was at this point that William E.
Lord took over as executive producer.
    Lord, still only in his 40's, has been working at ABC News for 19
years. His duties have included among other things, being a
writer-reporter, chief of the Washington news bureau, in charge of
conventional election coverage on regularly scheduled news programs,
and producer of the news reports on ''Good Morning, America.''
     Lord is enthusiastic about ''Nightline's'' present and future. In
January, the program will be expanded to a half-hour. In April, it
will pick up an extra evening, running Monday through Friday.
    Concentrating for the most part on a single subject, ''Nightline''
has been described as an imitation of public television's
''MacNeil-Lehrer Report.'' Understandably enough, Lord demurs.
''We're a whole new generation,'' he argues, maintaining that
''MacNeil-Lehrer'' is an extension of old formats such as ''Meet the
Press'' and ''Issues and Answers.'' For one thing, he notes,
''MacNeil-Lehrer'' lacks a world-wide news organization as a backup.
The ''Nightline'' staff of 34 persons, about equally divided between
New York and Washington, can use satellite transmissions and a cadre
of correspondents in the field to provide live updates on any
national or international story.
    For another, Lord continues, the length of ''Nightline'' is not
determined arbitrarily by the clock. What follows ''Nightline'' is
late-night network programming for which the local station does
nothing but punch a button. There are no automated cutoffs or timing
problems. A wide-ranging post-election broadcast, for instance, was
originally scheduled to run one hour. The content proved so lively
and informative to the producers that they let it run for an
additional 43 minutes. Lord is quick to point out that NBC News could
not clear extra time because of explicit stipulations in Johnny
Carson's contract. The ABC situation, he says, represents a
''complete turnabout in relations between news and entertainment.''
(MORE)
    
ny-1202 1236est
**********

a218  1147  02 Dec 80
AM-Syria-Jordan, Bjt,600
Syria Signs Treaty with Soviets; U.S. Ready to Help Jordan
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - With its Soviet-equipped forces massed along
its border with Jordan, Syria ratified a friendship treaty with the
Soviet Union on Tuesday. In Washington, officials said the United
States was prepared to supply spare parts and ammunition for .S.
weapons in Jordan's arsenal.
    Meanwhile, a Saudi Arabian mediator reportedly was trying to get
Syria's President Hafez Assad and Jordan's King Hussein to resolve
their border confrontation in a face-to-face meeting in Riyadh, the
Saudi capital.
    The 20-year treaty, which makes Syria the closest Soviet ally in the
Middle East, calls for consultation between the two nations if either
is threatened and for cooperation to consolidate their defenses.
    Ratified documents of the accord were exchanged by visiting Soviet
Vice President Vasily V. Kuznetzov and Syrian Prime Minister Abdul
Raouf al-Kasm in Damascus as Saudi Arabia's second deputy premier,
Prince Abdullah Bin Abdul-Aziz, arrived in Amman, the Jordanian
capital.
    Abdullah wound up peace-making talks with Assad a few hours before
Kuznetsov arrived in the Syrian capital Monday. The prince conferred
with King Khaled and Crown Prince Fahd in the Saudi capital before
flying to Amman for talks with Hussein.
    Pro-Syrian newspapers in Beirut, Lebanon, said Assad laid down terms
for settling the dispute that has brought 50,000 men and 1,200 tanks
from Syria and two armored divisions of 30,000 men from Jordan's
elite Bedouin army to swords point on their common 186-mile border.
    The newspapers As-Safir and Ash-Sharq said the conditions were:
    - Ending Jordan's alleged support for the outlawed Moslem
Brotherhood, the fundamentalist movement blamed for hundreds of
bombings and political assassinations in the past 24 months in Syria.
    - Disavowal by Jordan of any right to speak for the Palestinians in
connection with peace talks in the Middle East.
    Assad is known to fear a breakaway move by Hussein, who plans an
early meeting with U.S. President-elect Ronald Reagan, to join the
United States in fashioning a Mideast peace settlement that will
exclude Syria and the Soviet Union.
    The Kuwaiti conservative newspaper al-Rai al-Aam said Abdullah, who
is also the commander of Saudi Arabia's national guard, would propose
on behalf of his brother, King Khaled, that Hussein and Assad meet in
Riyadh.
    The Saudis, who finances much of Syria's and Jordan's arms budgets
to confront Israel, are alarmed by the prospect of their aid
recipients turning their guns against each other.
    Jordan abuts northern Saudi Arabia. Well-informed Mideast sources
said the Saudis offered the Hussein the use of their air bases, four
of which are only 300 miles south of Amman, to shelter his small air
force against a possible Syrian attack.
    Jordan's 58 combat aircraft, mostly American-made F-5 intercepters
and ground attack jets, are no match for Syria's air armada of 395
Soviet-made warplanes. Jordan's 60,000-man army also is less than
one-third the size of the Syrian army. But the Jordanians are
acknowledged as the best tank warriors in the Arab world.
    Apparently to discourage a Syrian attack, the United States has
declared it considers Jordan's security ''important.'' Washington
officials said the Carter administration was prepared to ship spare
parts and ammunition for U.S weapons already in Jordan's arsenal.
Congressional approval is not required.
    Syria and Iraq have been involved in a bitter ideological feud for
the past decade. Their quarrel deepended after the outbreak of the
Iraq-Iran war when Syria denounced Iraq as an aggressor and sided with
non-Arab Iran.
    
ap-ny-12-02 1446EST
**********

a219  1151  02 Dec 80
AM-War Rdp,410
Iraq Ready for 'Final Assault' on Khuzistan
By STEVE K. HINDY
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq's military command said Tuesday it was
poised for a ''final assault'' on Iran's embattled oil-rich Khuzistan
Province, but Iraq's foreign minister said the country also was ready
for a cease-fire and peace talks.
    Iran repeatedly has rejected Iraq's gun-and-olive-branch approach,
saying it will not discuss a cease-fire until all Iraqi forces are
withdrawn from Iran.
    The Iraqi News Agency quoted Foreign Minister Saadoun Hammadi as
saying the only ''practical and reasonable solution'' to the war was a
cease-fire, negotiation of a new border and then withdrawal.
    The agency said Hammadi's proposal was submitted in a letter to the
foreign ministers of the European Common Market whose leaders are
meeting in Luxembourg.
    Iraq previously has proposed limited term cease-fires, demanding the
Iranians recognize Iraqi sovereignty over 124 square miles of
disputed border lands and the 120-mile-long Shatt al-Arab estuary,
their common border at the head of the Persian Gulf and Iraq's only
outlet to the sea.
    Iraqi President Saddam Hussein scrapped the 1975 treaty putting the
border midstream in the Shatt al-Arab five days before the war broke
out Sept. 22.
    More
    
ap-ny-12-02 1451EST
**********

a221  1200  02 Dec 80
AM-War Rdp, 1st add, a219,250
BEIRUT, Lebanon: Sept. 22
    Iraq's military spokesman said troops occupying a large part of
Khuzistan were only waiting for Iraq's political leaders to order the
crushing of the capital Ahwaz, the garrison city Dezful and the oil
refining center Abadan.
    But a spokesman for Iran's Supreme Dd∞ense Council, Hojatolislam Ali
Khamenei, was quoted by Iran's news agency Pars as saying: ''Our
forces have moved into offensive positions. They have wrested the
initiative and henceforth will be on the attack.''
    Despite claims of both sides, Western military sources said the
frontline positions have not changed much since foreign reporters four
weeks ago confirmed Iraqi control of the western sector of Iran's
commercial port of Khorramshahr, on the Shatt al-Arab.
    In Damascus, the Syrian capital, sources said Iraq resumed pumping
oil through its trans-Syria pipeline. Existing agreements allow the
Iraqis to pump 200,000 barrels a day through the line to the
Mediterranean port of Banias.
    Baghdad broke relations with Damascus over Syria's alleged support
for Iran, but the sources described the deal to reopen the fuel line
as economically beneficial to both sides.
    
ap-ny-12-02 1500EST
**********

n055  1317  02 Dec 80
 
BC-TURKEY
Turkey Downgrades Diplomatic Relations with Israel
By MARVINE HOWE
c. 1980 N.Y. Times News Service
    ANKARA - Turkey announced Tuesday its decision to downgrade its
diplomatic relations with Israel to a symbolic level, citing that
country's continued ''unconciliatory'' policy on the Middle East
problem.
     This decision is linked to Turkey's recent rapprochment with Saudi
Arabia, which has promised to fill the gap in this country's oil
supply as a result of the Iraq-Iran war, according to sources close
to the government.
     It was also interpreted as a move by Turkey's new military rulers
to reaffirm their Islamic sentiments, after the jailing of the
leadership of the pamic National Salvation Party, accused of
using religion in politics.
     Turkish Foreign Ministry spokesman Oktay Iscen declared that Israel
was informed on Nov. 26 of the decision to reduce the level of
relations to that of second secretary and stressed that the
representation would be on a ''reciprocal'' basis.
     Official sources stressed that this did not mean that Turkey was
breaking diplomatic ties with Israel, but rather ''freezing'' them.
     It was said that the two sides would have a period of three months
to withdraw their respective diplomatic staffs.
     Turkey, the only Islamic nation aside from Egypt to retain
diplomatic relations with Israel, has come under increased pressures
to sever the ties. While successive governments in Ankara have firmly
resisted these pressures, there has been a gradual cooling of
relations since the 1967 Arab-Israeli war. At that time, Turkey
downgraded its representation in Tel Aviv to charge d'affaires, while
Israel continued to be represented here by a diplomat of
ambassadorial rank.
     The official spokesman said the government had decided to recall
its senior diplomatic personnel from Israel because it was
''understood'' Israel did not intend to abandon its ''unconciliatory
policy in the Middle East conflict'' or renounce ''the fait accompli
on the legal status of Jerusalem.''
     A representative of the Palestine Liberation Organization said his
mission was officially informed of Ankara's move, which was said to
be taken in support of ''Palestinian rights.''
     Ihe Israeli legation here appeared somewhat surprised by Turkey's
decision and could give no immediate reason for its timing.
     The Turkish military junta, which seized power Sept.12, has
generally followed the pro-Western foreign policy of the previous
government, headed by the conservative former prime minister,
Suleyman Demirel.
     Nevertheless, there has been a noticeable effort to improve
relations with Arab countries, particularly the Persian Gulf states.
     Foreign Minister Ilter Turkmen, who visited Saudi Arabia last
month, declared on his return that his government was determined to
promote relations with the Middle East countries.
     Turkmen indicated Saudi Arabia was ready to cover not only this
year's oil deficit of two millions tons, but to envisage a long-term
oil agreement with Turkey. This country was one of those hardest hit
by the Gulf war, because Iraq and Iran are its two main oil suppliers.
     Turkey has maintained strict neutrality in the Iraq-Iran war but
has substantially increased its trade to both countries, exporting
foodstuffs in particular.
     Reports have also reached here that Kuwait and Saudi Arabia are
willing to help compensate for Turkey's lowered oil supplies.
     It was also announced that the United Arab Emirates would open an
embassy in Ankara next month, which would facilitate Turkey's
relations with the Gulf countries.
     In view of these signs of Arab good will, official quarters
suggested that Turkey should make some gesture on the key
Arab-Israeli problem, before the next Islamic summit meeting in Taif,
Saudi Arabia, next month.
    
ny-1202 1619est
**********

a234  1415  02 Dec 80
AM-Hostages, Bjt,490
Christopher Delivers New U.S. Response On Hostages
By MICHAEL GOLDSMITH
Associated Press Writer
    ALGIERS, Algeria (AP) - Deputy Secretary of State Warren
Christopher, on his second hostage mission here in three weeks, gave
Algerian intermediaries a new U.S. reply Tuesday to Iran's terms for
releasing the 52 American captives held nearly 13 months.
    Christopher delivered the U.S. clarification to Algerian Foreign
Minister Mohamed Benyahia and also gave him a ''technical explanation
and details concerning the reply to be forwarded to the Iranian
government,'' the official Algerian news agency reported.
    It said Benyahia met with Christopher at the Jenan el-Mufti
government guest house. Reporters were not allowed to approach the
villa and neither delegation made any comment on the talks. Algeria
has been acting as a go-between at the request of Tehran, which has
repeatedly refused direct talks with the United States.
    Meanwhile, informed sources here cautioned against any expectations
of an early breakthrough.
    U.S. officials in Washington said Christopher was ready to caution
that President-elect Ronald Reagan would not be bound by steps taken
by President Jimmy Carter if the hostages, held 395 days, were still
not freed by the Jan. 20 inauguration.
    ''We cannot commit the next administration to a course of action,''
said State Department spokesman John Trattner, who added that Reagan
had made it clear he approved of the current approach to the crisis.
    Reagan has said it would be ''foolish'' for the Iranians to think
they would get better treatment by waiting until he takes office.
    Meanwhile, Hashemi Rafsanjani, speaker of Iran's parliament,
reiterated earlier statements from Iranian officials that Tehran did
not contemplate a trade of the hostages for military equipment to use
in the 72-day-old war with Iraq, Tehran radio reported.
    ''There is no connection between the release of the 52 hostages and
the purchase of American spare parts. The two have nothing to do with
each other.'' the radio quoted him as telling a Western radio
reporter in Tehran.
    There was no indication how long Christopher would remain here nor
of the contents of the message he carried.
    But in Washington, U.S. officials said it reflected no change in the
basic position relayed by Christopher three weeks ago.
    ''It is an attempt to respond fully to the Iranian request for
clarification of certain aspects of our position,'' said the official,
who requested he not be identified by name.
    On Nov. 2, the Iranian Parliament laid down four conditions it
demanded the U.S. government meet before the Americans were released:
pledging non-interference in Iranian affairs; abrogating all U.S.
lawsuits against Iran; releasing $8 billion in Iranian assets
impounded in U.S. banks and returning the wealth of the late Shah
Mohammad Reza Pahlavi.
    Informed sources here said the new American message to Iran offered
to ''assist'' Iran in meeting the legal claims and in determining the
whereabouts of at least some of the money allegedly taken out of Iran
by the late shah.
    
ap-ny-12-02 1714EST
**********

n067  1447  02 Dec 80
 
BC-WHY-IN-THE-WORLD
(EDUCATION)
By FRED M. HECHINGER
c. 1980 N.Y. Times News Service
    Dear Why in the World:
    I am 11 years old and I think this program has been wonderful.
Especially the first one about the war. I hope you will continue to
show this most beneficial TV show. 1980 has been a very confusing
year and I don't understand even why the Iraqis and the Iranians are
fighting!
    -Alecia Townsend-
    
NEW YORK - ''Why in the World,'' the program that so impressed this
California youngster, is the brainchild of Walter Cronkite, the
television news veteran who will retire as the anchor man of ''The
CBS Evening News'' next year. If all goes well, the program, which
has recently been tested in seven public schools in the Los Angeles
area, will be on the air next September every weekday morning for use
in schools from coast to coast.
    Cronkite says he has long been concerned about the ability of high
schools to make a connection between what children are taught in
school and world events. His solution is to bridge the gap between
school and the outside world by creating a stable of teacher-experts
who, at the flick of a story in the morning's newspapers, can go on
the air instantly and relate news developments to a theme in history,
economics, English, art, science or whatever.
    On the day those miraculous pictures of the rings of Saturn appeared
on page one of many newspapers, an articulate scientist on ''Why in
the World'' would explain their significance. The obituary of a great
novelist might trigger an instant lesson on literature. The arrival
of Soviet troops in Afghanistan could have been the occasion for a
historian to take over.
    When he first thought of such a show, Cronkite says, he recalled
that Albert Einstein was capable of making mathematics comprehensible
to children in grade school. That is the sort of talent he seeks in
trying to create a pool of instantly available articulate experts,
able to speak to a school audience without jargon and without the
platitudes that put students to sleep.
    Satellite Education Services, a nonprofit company with headquarters
in Los Angeles, has been founded to produce the program under
Cronkite's chairmanship. The Rockefeller and Sloane Foundations have
underwritten the production of pilot programs, produced at KCET, the
Los Angeles Public Broadcasting station.
    The programs were subjected to extensive field tests for one week in
October. Each half-hour program was broadcast live daily at 9 a.m.
and repeated at 8 p.m. the same day. The segments included a look at
the 1980 presidential candidates from a historical perspective;
sports as a business enterprise; the economic impact on the United
States of the Iran-Iraq war, and a discussion of the American
automobile industry with a prognosis for the future.
    Once in full operation, the program would be produced by public
television stations in Los Angeles, New York, Chicago, Boston and
Washington for early-morning instant transmission by satellite to
blanket the nation. Schools could pick the program up directly on
television but would be more likely to tape it for distribution to
classrooms later, when it might fit better into teachers' schedules.
In its first year the program's price tag has been estimated at $3
million but subsequent costs are expected to be less.
    The key to the plan's success, Cronkite believes, is the ready
availability of all programs, which will carry unlimited educational
re-broadcast rights, allowing any school to record, use and reuse
programs for free. Schools could build tape libraries and dig back
into them weeks, months, years or even decades later to throw light
on subsequent developments.
    Cronkite insists that the programs must free themselves from the
cliches and rigidities of television news and documentaries.
''Television,'' he warns, ''is too hooked on visuals and elaborate
production props.'' A good teacher, he feels, should need only a
blackboard and perhaps a map or some simple laboratory equipment.
    Barbara Barnes-Vyden, who masterminds the production in Los Angeles,
says the pilots were a far-from-perfect preview of what the creators
of this new link between school and the world have in mind. Too much
preparation, she says, went into the programs, with the result that
they looked and sounded too much like traditional lectures.
    Comments by the target audience were instructive. Teachers made the
following observations:
    - ''As a teacher, much of what I talk about is out of date. 'Why in
the World' can help us keep current.''
    - ''Our students are so overstimulated with television that I don't
think 'Why in the World' needs more visuals or a flashier set.''
    - ''The biggest problem is getting response from the students. I
think this is because of the growing 'spectator' syndrome in America
today. I think TV got us into this; maybe TV can get us out and maybe
this program can stir participation.''
    Students called for the inclusion of more nonacademic speakers, use
of foreigners in foreign affairs programs, avoidance of the lecture
approach and inclusion of more than one expert's point of view.
    But in general, reactions were supportive. The program's creators,
headed by Cronkite who knows the medium, are convinced that the
schools are in need of a new dimension in a world that moves so fast
that it leaves conventional lessons lagging behind reality. Cronkite
is certain that ''Why in the World'' will ''inspire students to find
more interest in the academic disciplines'' as well as in the world
around them. As a byproduct, he added, ''it may also inspire more
exciting teaching.''
    
ny-1202 1750est
**********

n068  1455  02 Dec 80
 
AM-IRAQ
Iraqis Accuse U.S. of Helping Iran
By YOUSSEF M. IBRAHIM
c. 1980 N.Y. Times News Service
    BAGHDAD - Iraq President Saddam Hussein Tuesday accused the United
States of lending support to the regime of Ayatollah Ruhollah
Khomeini in what appears to be the beginning of a new campaign of
hostility against the American presence in the Middle East.
    ''Once again we find the United States of America supporting this
state (Iran) that practiced aggression on our lands and our people
since two years,'' the Iraqi leader said in a message addressed to
the Chairman of the United Nations Committee for the Inalienable
Rights of the Palestinian Arab People.
    The message was repeated several times on the Iraqi radio.
    The Iraqis' charge was coupled with a strong attack on the United
States in the official daily of the ruling Iraqi Baath Party, the Al
Thawra newspaper.
    Ina long commentary, the newspaper's political analyst, Hammam
Abdelghani said ''American imperialism and its monopolies'' is
standing behind the aggression of its ''agents'' in Iran, Syria, and
Libya, by supporting these countries in their opposition to Iraq.
    Al Thawra called for the ''escalation'' of Arab resistance to the
United States from the stage of condemnation to ''practical answers''
including, it said, the use of Arab ''human, economic, and military''
resources.
    Western diplomatic observers here interpreted the escalation of
anti-American rhetoric - which was also coupled with vehement attacks
in the official Iraqi media against Syria and Libya - as signs of
exasperation about the lengthy war Iraq finds itself dragged into
with Iran.
    Arab diplomats here felt the move was also meant to signal Iraq's
displeasure with the lukewarm support it is receiving for its
military campaign against Iran from other Arab regimes, particularly
the Palestine Liberation Organization, and the conservative regimes
of the Arabian Peninsula.
    Over the past few days the Iraqi government-controlled media seems
in fact to be devoting more space and attention to launching its
bitter assaults against Syria and Libya than it does to news of the
war with Iran.
    So far, the principal targets of the war of words is President Hafez
Assad of Syria, the leader of the rival Baathist regime in Damascus.
Monday, Al Thawra referred to him as a ''yellow snake,'' and Tuesday
accused him of collusion with Israel and Egypt in pursuing a
''defeatist'' settlement of the Middle East crisis that would favor
Israel against the Palestinian Arabs.
    Al Thawra also said that the presence of Syrian troops in Southern
Lebanon was part of an American-Israeli plot to use the Syrian
president as their ''policeman'' in the control of Palestinian forces
in the region.
    The introduction of the United States as a party in the
inter-regional bickering represents a change in the Iraqi attitude
which over the past year was seen as taking a more moderate stand on
relations with the United States.
    The change was attributed here to renewed fears that President
Carter may resume the shipments of spare parts and arms to Iran after
he obtains the release of the American hostages in Iran.
    Such a development would present Iraq with the prospects of an even
longer war with Iran, suggesting an endless quagmire that will keep
Iraqi troops, and the Iraqi economy, paralyzed indefinitely.
    
ny-1202 1758est
**********

n069  1506  02 Dec 80
 
AM-EUROSUMMIT
European Community Warns Soviets on Intervention in Poland
By RICHARD EDER
c. 1980 N.Y. Times News Service
    LUXEMBOURG - Nine European nations issued a warning Tuesday against
Soviet intervention in Poland.
    Although largely worked out beforehand, the warning, made at the end
of a regular two-day meeting of the heads of government of the
European Community, reflected a concern made more urgent by reports
of heightened tension between the Soviets and the Poles.
    The Polish question came to dominate a meeting that had been
expected to concentrate on other questions, notably the Middle East.
Monday, an informal agreement was reached to explore the possibility
of making excess meat and butter stocks, held by the Community,
available to Poland at reduced prices.
    Tuesday's statement did not specifically name the Soviet Union. It
recalled in great detail the principles of national
self-determination and non-interference set out in the Final Act of
the Helsinki Agreement, which is currently being reviewed in a series
of meetings in Madrid.
    The nine nations called on the Helsinki signatories - which include
the Soviet Union and Eastern Europe - ''to abide by these principles
with regard to Poland and the Polish people.
    ''They emphasize that any other attitude would have very serious
consequences for the future of international relations in Europe and
throughout the world,'' their statement continued.
    No specific measures were mentioned in the statement, nor were they
discussed in the course of the meeting. Asked at a press conference
afterwards what the ''serious consequences'' might be in case the
Soviet Union moved into Poland, Pierre Werner, the prime minister of
Luxembourg and the chairman of the summit meeting, replied: ''they
would be serious.''
    Nevertheless, the sense of the summit meeting was clearly an effort
to suggest both firmness and unity in a troubled international
situation. Its particular message was that Western Europe hoped to be
a strong - if not subordinate - partner with the United States in the
crises that confront both of them.
    The prologue to the meeting's final declaration said that the Nine,
''in the face of the disquiet caused by developments in the
international situation'' were ''conscious of Europe's
responsibilities.
    ''It is in the context of the solidarity which unites a strong
America and a Europe confident of itself and of its role that
dialogue and coordination between them will best serve the cause of
peace and freedom,'' it added.
    The message was aimed in part, though tacitly, at President-elect
Ronald Reagan. The Europeans seem to be summoning up as much
resolution as they can manage - French Foreign Minister Jean
Francois-Poncet said recently that he was fed up with the word
''detente'' - in order to come as close as possible to the demands of
a future U.S. administration that may call for more than they can
manage.
    The leaders heard what appeared to have been a cautiously optimistic
report by West German Chancellor Helmut Schmidt about his recent
meeting with Reagan in Washington. Werner gave a public summing-up by
saying that ''Herr Schmidt gave us the impression that a dialogue is
possible and may, indeed, be engaged in during the months to come.''
    As for the Middle East, the Community's hope of advancing resolution
of the Israeli-Arab conflict by independent diplomacy has been
frustrated, for the time being, by two factors. One is the current
disarray of the Arabs, what with the Iran-Iraq war and the threatened
hostilities between Syria and Jordan. The other is the recognition by
most of the Nine - though the French formally disagree - that it
would be unrealistic to advance proposals in the time between two
American administrations.
    The summit meeting had a four-part report, drawn up by working
groups from Great Britain, France and Italy. The reports were based
in part on talks held by Gaston Thorn, Luxembourg's former foreign
minister, with the governments of Israel and several Arab nations.
    The papers contained proposals in four principal areas of
disagreement. One was the means by which Israel's security could be
safeguarded. A second concerned Israeli withdrawal from territories
occupied after the 1967 war. A third dealt with the question of how
Palestinian self-determination - called for by the Nine at their
meeting last year in Venice - could be implemented. The fourth
concerned the status of Jerusalem.
    France had originally asked for publication of the report which,
generally speaking, presents alternatives rather than single
conclusions, and is more of a study of feasibilities than a program
of action. The proposal found little favor, however, and the French
did not insist.
    Rather than recomend specific action at this time, the nine
governments agreed to continue exploratory talks in the Middle East,
''with a view to a more thorough exploration of these formulas.''
    
ny-1202 1809est
**********

a251  1616  02 Dec 80
AM-Cards-Hostages,430
Card Company Provides Free Holiday Cards to Send to Hostages
Laserphoto NY53
By JUDIE GLAVE
Associated Press Writer
    NEW YORK (AP) - A greeting-card company's nationwide distribution
Tuesday of 1 million free holiday cards for the 52 American hostages
in Iran brought out expressions of hope from New Yorkers, but beneath
the hope there was sadness.
    Tears were in the eyes of Helen Bonomo of Queens as she filled out
her holiday greeting at a store in Manhattan.
    ''I get very emotional every time I think about them,'' she said.
''They're going through such an ordeal over there.''
    ''Meanwhile, we all sit back and enjoy a nice holiday. It's just not
fair.''
    Some 160 store owners and merchants in cities throughout the nation,
including New York, Los Angeles, Chicago, Dallas, Miami, Atlanta and
Baltimore, participated in the one-day National Unity Day drive, said
its sponsor, Recycled Paper Products of Chicago.
    The about 1 million cards were distributed primarily to department
stores and malls. The effort cost about $750,000, according to company
spokesman Ellen Mora, reached by telephone in Chicago.
    Ms. Mora said Recycled Paper was sponsoring the drive for two
reasons: ''to let the hostages know the nation is thinking of them and
to give the American people a chance to express their opinion on the
situation.''
    Rosie Cancel, a 16-year-old student, said her holiday message to the
52 Americans, who were seized in Iran on Nov. 4, 1979, was, ''Don't
lose faith. Just hang on and remember that someday you'll be free.''
    Participants were given a choice of four styles of cards.
    One pictured a Christmas tree tied with a yellow ribbon with a
message that read: ''We've tied a yellow ribbon on the Christmas tree
in the hopes that you'll soon be home in the land of liberty.''
    The most popular card showed a craggy-looking Uncle Sam, wearing a
Santa Claus hat, pointing his finger. His message was: ''I want you to
know that America is thinking of you this holiday season and hoping
you'll be home safe and soon.''
    Gene Cohen, manager of the Fifth Avenue Card Store, said he received
10,000 cards and expected to give them all away. ''If I run out, I'll
open up my own stock and give some more away,'' he said.
    Gimbels, which also participated in a free card campaign last year,
went a step further this season and included free postage.
    Robert Gottlieb, senior vice president of marketing, said all six
Gimbels in New York, New Jersey and Connecticut were participating
''as a show of spirit, solidarity and interest in the well-being of
the hostages.''
    Cards to the hostages must be mailed by Dec. 5 to U.S.A. Embassy,
260 Telleghani Avenue, Tehran, Islamic Republic of Iran. The cards
must carry a 31-cent overseas stamp.
    
ap-ny-12-02 1911EST
**********

a014  2255  02 Dec 80
BC-Tehran Quake,110
URGENT
5.3 Quake Hits Iranian Capital
    LONDON (AP) - Tehran, the Iranian capital, was hit by an earthquake
measuring 5.3 on the Richter scale Wednesday morning, Tehran Radio
reported.
    The broadcast said no reports of casualties or damage were available
yet.
    It said the quake struck shortly before 8 a.m. (11:30 p.m. EST
Monday), and the center was about 120 miles from Tehran.
    The Richter scale is a measure of ground motion as recorded on
seismographs. An earthquake measuring 5 on the scale can cause
considerable damage.
    The San Francisco earthquake of 1906, which occurred before the
Richter scale was devised, has been estimated at 8.3 on it.
    
ap-ny-12-03 0155EST
**********

a020  2349  02 Dec 80
BC-Tehran Quake, 1st Ld, a014,110
5.2 Quake Hits 120 Miles from Tehran
Eds: precede London. Leads with 4 grafs to update with location of
quake; picks up 4th graf pvs.
    NICOSIA, Cyprus (AP) - An earthquake measuring 5.2 on the Richter
scale hit an area on Iran's Caspian seacoast 120 miles northwest of
Tehran Wednesday morning, the Pars news agency reported.
    The official Iranian agency said no reports of casualties or damage
had been received yet.
    Pars said the quake was felt in Tehran, but the tremor was not
severe in the capital and there appeared to be no casualties there.
    It said the quake occurred at 7:56 a.m. (11:26 p.m. EST Tuesday),
and the geophysics department of Tehran University reported the
epicenter was in the vicinity of the town of Langerud, on the coast of
the big inland sea.
    The Richter, 4th graf
    
ap-ny-12-03 0248EST
**********

a033  0149  03 Dec 80
PM-Hostages, Bjt,490
Christopher Holds 2nd Meeting With Algerians
By MICHAEL GOLDSMITH
Associated Press Writer
    ALGIERS, Algeria (AP) - Deputy Secretary of State Warren Christopher
holds a second meeting with Algeria's foreign minister today to
discuss the new U.S. note to Iran about the hostages.
    Algerian envoys were expected to take the American note to Tehran
later today or Thursday.
    Christopher conferred for 4 1/2 hours Tuesday with Foreign Minister
Mohamed Benyahia and gave him a detailed ''technical explanation,''
the official Algerian news agency said, to clarify the American
response Nov. 10 to Iran's conditions for releasing the 52 hostages.
    Informed sources said Christopher told Benyahia why the Carter
administration was unable to carry out two of the four Iranian
conditions for releasing the Americans, who today were spending their
396th day in captivity.
    These were Iran's demand that all legal claims against Iran be
dropped and that the foreign assets of the late Shah Mohammad Reza
Pahlavi be returned to Iran. The sources said Christopher explained
that the Carter administration had no power to interfere with the
courts or to seize assets not under U.S. jurisdiction.
    However, the American reply suggested the United States might
''assist'' Iran in contesting the legal claims and in determining the
whereabouts of at least some part of the shah's fortune, the sources
said.
    During his visit to Algiers last month, sources said Christopher
told Benyahia the United States had no objection to meeting RAN'S
OTHER TWO CONDITIONS, A PROMISE OF NON+INTERFERENCE IN Iran's affairs
and release of $8 billion in Iranian assets frozen in U.S. banks.
    Hashemi Rafsanjani, speaker of Iran's Parliament, told a news
conference in Algiers Nov. 19 that the United States had accepted all
four conditions ''in principle'' but must put them into effect before
the hostages can be released.
    Algeria is acting as go-between in the negotiations since U.S. and
Iranian officials do not communicate directly with each other.
Abdelkrim Gheraib and Redha Malek, Algeria's ambassadors in Tehran and
Washington, participated in the talks with Christopher and were ready
to carry the latest American position to Iran as soon as Benyahia
ordered their departure.
    Christopher was expected to fly back to Washington later today or
Thursday while Gheraib and Malek fly to Tehran to deliver the American
communication.
    Reporters in Washington asked State Department spokesman John R.
Trattner whether Christopher carried a message advising the Iranians
what they might expect from the U.S. government after Ronald Reagan is
inaugurated on Jan. 20.
    Trattner said Christopher carried no such message and he ''has not
gone and volunteered this kind of a thesis to the Iranians as part of
our clarification procedure. I think the Iranians and everybody else
understand that an outgoing cannot commit an incoming administration
to a course of action. That's evident in the nature of the
situation.''
    
ap-ny-12-03 0449EST
**********

a045  0311  03 Dec 80
PM-War Rdp,470
Iraqi Guns Pound Iranian Towns
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraqi tanks and artillery blasted the four
main cities of Iran's oil province of Khuzistan today as the war on
the northern flank of the Persian Gulf entered its 73rd day.
    Baghdad Radio said the Iraqi gunners kept up the pressure on Iran's
oil refining city of Abadan, the town Susangerd, the military
garrison town of Dezful and Ahvaz, the capital of Khuzistan.
    The four cities have been heavily bombarded since the war began. The
Iraqi command said Tuesday its forces were ready for a ''final
assault'' to capture these cities once the Iraqi political leaderships
issues the order.
    Iran said its paratroopers fought to regain control of its western
highlands from Iraq's invading forces and said it repulsed Iraqi jets
attacking its main oil loading terminal in the gulf.
    Tehran communiques said paratroopers fought for trenches and bunkers
in the foothills of the Zagros mountains in Ilam and Gilan Gharb
provinces at the northern end of Iraq's 300-mile invasion front. Iraqi
communiques said its forces repulsed the Iranian attacks.
    The long-contested highlands control the main highways from Iran's
western border to the Iraqi capital of Baghdad about 100 miles farther
west.
    A communique from Iran's military command broadcast by Tehran Radio
said one Iraqi fighter-bomber was brought down in an attempted raid
on Kharg Island, Iran's largest off-shore oil loading facility.
    The communique did not say whether the giant installations at the
island were bombed, but claimed the Iraqi jet was shot down by ground
fire from the adjacent naval base of Bushehr, Iran's biggest on the
Persian Gulf's eastern shore.
    This was the first reported Iraqi air raid on Kharg in two weeks.
Iran attempted to storm into Iraq's main oil loading terminal of Mina
al-Bakr, 120 miles northwest of Kharg over the weekend.
    Both countries have suspended shipments from Kharg and Mina al-Bakr
since the outbreak of the war on Sept. 22. Iraq recently resumed
shipments via pipelines to Mediterranean terminals in Turkey and
Syria. Iran also is believed to have been pumping oil through its
Lavan Islet, 250 miles south of Kharg.
    The Iranian government gave no response to the latest peace offer of
Iraqi Foreign Minister Saadoun Hammadi. He proposed a cease-fire in
place, direct negotiation of a new border and then a withdrawal to the
new boundaries.
    ''This is the only practical and reasonable solution,'' Hammadi said
in letters to the foreign ministers of the European Economic
Community member-states Monday. It could not be determined whether the
proposals were communicated to Iran through any EEC country.
    Previous statements by President Abolhassan Bani-Sadr and Prime
Minister Mohammad Ali Rajai of Iran insisted on an unconditional Iraqi
withdrawal from war-conquered Iranian territory before a ceasefire
could be considered.
    
ap-ny-12-03 0610EST
**********

a061  0451  03 Dec 80
PM-Hostages-Christmas,420
Hostage Families Observe Another Christmas Season Without Kin
By MARK S. SMITH
Associated Press Writer
    WASHINGTON (AP) - For the families of the 52 American hostages in
Iran, reminders are everywhere that for a second holiday season their
loved ones are still a long way from home.
    On Tuesday, Penne Laingen, the wife of hostage L. Bruce Laingen,
crowned the national Christmas tree with a cluster of blue and white
bulbs. The only other ornaments on the towering blue spruce were 52
yellow ribbons.
    Nearby, at the White House, Jimmy Carter issued the annual
presidential Christmas message, calling on Americans to ''offer our
prayers for those who live where there is strife, hunger, persecution
or injustice.'' But unlike last year's Yule message, it made no
specific reference to the captives.
    And in Algiers, Deputy Secretary of State Warren Christopher was
explaining to Algerian intermediaries the U.S. response to the Iranian
response to the American response to the conditions that Iran set for
release of the hostages.
    ''We must be patient,'' said Bonnie Graves, whose husband, John
Graves, is nearing his 400th day in the hands of Iranian captors.
''It's only been a scant month, really,'' since Iran's Parliament set
the conditions.
    As Mrs. Graves spoke at the Washington ceremony, Mrs. Laingen was
perched in a crane at the top of the Christmas tree, posing for
photographers who were being hoisted, one after another, in an
adjacent crane, to get just the right angle - the tree and Mrs.
Laingen in the foreground, the White House in the background.
    Last Christmas, the president made the tree a symbol of American
determination, asking that its lights not be lit until the hostages
were home safe.
    But a year has passed, and even the families of the hostages are of
two minds on whether the ''tradition'' should continue.
    Louisa Kennedy, for one, thinks not.
    ''I think it should be lit, because it's there for many other
reasons,'' said Mrs. Kennedy, wife of hostage Moorehead Kennedy.
''It's an institution that should go on the way all our institutions
should go on regardless of what takes place in Iran.''
    Mrs. Kennedy was hopeful her husband would be home soon. ''We have
every hope (the hostage crisis) will be resolved before the new
administration comes on,'' she said.
    The old administration, meanwhile, was adding its hope ''that this
holiday season will be a very happy and satisfying one for all
Americans and that 1981 will bring us closer to the realization of our
hopes and dreams.''
    Mrs. Kennedy said that even though her husband was not referred to
specifically, she knows what the president meant.
    
ap-ny-12-03 0751EST
**********

a073  0600  03 Dec 80
PM-War Rdp, Insert, a045,30
BEIRUT, Lebanon Insert after 3rd graf: new graf 4 Bani-Sadr on Iran
strategy
    President Abolhassan Bani-Sadr, at a Tehran news conference, said
Iran had stopped the advance of Iraqi forces and started the''second
stage of the war,'' expulsion of Iraqi troops from Iranian territory.
    Iran said: 4th graf
    
ap-ny-12-03 0900EST
**********

a074  0605  03 Dec 80
PM-Cards-Hostages,250
Move on To Send Holiday Cards to Hostages
    NEW YORK (AP) - The eyes of the Queens housewife brimmed with tears
as she filled out a holiday greeting card at a Fifth Avenue store.
    ''I get very emotional every time I think about them,'' said Helen
Bonomo, one of many shoppers enlisted Tuesday by a greeting card
company in a campaign to send holiday best wishes to the 52 American
hostages in Iran.
    ''They're going through such an ordeal over there,'' she said.
''Meanwhile, we all sit back and enjoy a nice holiday. It's just not
fair.''
    Rosie Cancel, a 16-year-old student from Norman Thomas High School
in Manhattan, said the hostages' plight on their second Christmas
abroad was ''very sad.'' She said her holiday message to the 52 was
''Don't lose faith. Just hang on and remember that someday you'll be
free.''
    About 160 merchants in major cities around the nation participated
in the National Unity Day Drive, according to the sponsoring Recycled
Paper Products of Chicago.
    Participants were able to choose from four different card styles.
One pictured a Christmas tree tied with a yellow ribbon, a symbol of
remembrance, with a message that read: ''We've tied a yellow ribbon on
the Christmas tree in the hopes that you'll soon be home in the land
of liberty.''
    The most popular card showed Uncle Sam wearing a Santa Claus hat,
pointing his finger. His message was: 'I want you to know that America
is thinking of you this holiday season and hoping you'll be home safe
and soon.''
    Cards to the hostages must be mailed by Dec. 5 to U.S.A. Embassy,
260 Telleghani Avenue, Tehran, Islamic Republic of Iran. The cards
must carry a 31-cent overseas stamp.
    
ap-ny-12-03 0905EST
**********

a082  0701  03 Dec 80
PM-Hostages, 1st Ld, a033,200
Eds:meeting held, New material 1st 5 grafs
By MICHAEL GOLDSMITH
Associated Press Writer
    ALGIERS, Algeria (AP) - Deputy Secretary of State Warren Christopher
and his high-level U.S. delegation met at a ''working lunch'' today
with Algerian Foreign Minister Mohamed Benyahia and other Algerian
officials involved with the indirect negotiations to free the American
hostages in Iran.
    The two delegations met at in a restaurant at the Algiers Zoo, some
15 miles from the capital. All outsiders were barred from the
premises. It was the second meeting of the two groups since the
Americans arrived early Tuesday.
    Algeria has been acting as intermediary in the slow-motion
negotiations over Iran's four conditions for release of the 52
hostages now held for almost 13 months.
    The two delegations met for 4 1/2 hours Tuesday. Informed sources said
Christopher submitted a detailed and documented explanation of the
American position and the Algerians asked some questions.
    A further formal session was scheduled following the luncheon.
Christopher and his delegation were expected to fly back to Washington
late today or earxzle the Algerians go to Iran with the
American response.
    Informed sources: 4th graf
    
ap-ny-12-03 1001EST
**********

a086  0743  03 Dec 80
PM-Syria-Jordan 1st Ld, a026,530
Eds: New grafs 1-13 Jordan denies accepting Syrian conditions
By ALEX EFTY
Associated Press Writer
    AMMAN, Jordan (AP) - Jordan's information minister said today that
King Hussein had not accepted Syria's conditions for ending the border
crisis, denying earlier reports by Jordanian officials that Jordan
had agreed to Syrian terms for defusing tension between the two Arab
states.
    Although mediation efforts were still under way and Syria was
reported to have pulled back some of the troops it massed at the
Jordanian border, Information Minister Adnan Abu Audeh told reporters:
''Syria has submitted no conditions and the king has accepted none.''
    The crisis had appeared to ease on reports that Jordan had agreed to
Syrian demands for a written statement that Jordan was not aiding
terrorists of the Moslem Brotherhood trying to oust the Syrian regime
of President Hafez Assad and that Jordan recognized the Palestine
Liberation Organization as the sole representative of the Palestinain
people.
    Syria pulled back some of the 50,000 troops it had concentrated on
the Jordanian border when tension built up over conflicting positions
the two Arab countries have taken on the Iran-Iraq war and Syrian
charges that Jordan aided the Moslem Brotherhood. Jordan sent 30,000
of its troops to the border and there was no word any of them had
withdrawn.
    Meanwhile, Prince Abdullah Bin Abdul-Aziz, the Saudi Arabian deputy
premier, flew to Damascus to continue his mediation efforts. He was
reported carrying Jordan's response to the Syrian conditions.
    Jordanian officials who did not wish to be identified, reported
Hussein had accepted the Syrian demands, noting that Hussein has
denied the Syrian charges. Hussein has said he was ''open to all
reasonable suggestions for resolving this pointless crisis.''
    But in saying that Jordan had not bowed to the Syrian conditions,
Abu Audeh told reporters: ''Acceptance of the two Syrian conditions
would signify that we accept the Syrian assumption that we are guilty
of the false charges leveled against us.''
    Other sources said King Hussein had signaled his readiness to accept
a settlement of the dispute provided it was not taken as a Jordanian
capitulation to Syrian demands or an admission of the truth of the
Syrian charges.
    Political observers said the Syrian demands were a device for Assad
to defuse the crisis he began last month without losing face.
    The king already has denied publicly Syrian charges that Jordan
trained and supplied Moslem Brotherhood terrorists who have been
waging a campaign of bombing and assassination against Assad's regime
in Syria. And the oblo as sole representative of the Palestinian
people at the 1976 Arab summit conference in Rabat.
    There was speculation that Soviet Vice President Vasily V.
Kuznetzov, in Damascus to exchange documents ratifying the new
Soviet-Syrian friendship treaty, had put pressure on Assad to cool the
crisis. Speaking at the ratification exchange Tuesday, he urged that
all conflicts be settled in ''peaceful ways.''
    Saudi Arabia, which finances both Syrian and Jordanian arms
purchases with oil revenues, acted as official peacemaker between its
two northern neighbors. Bin Abdul-Aziz, the Saudi deputy premier,
carried messages from King Khaled to Assad in Damascus, then relayed
the peace terms to Hussein Tuesday.
    Jordanian Prime: 9th graf
    
ap-ny-12-03 1043EST
**********

a099  0832  03 Dec 80
PM-Bazargan,180
    BEIRUT, Lebanon (AP) - Mehdi Bazargan, Iran's first prime minister
after the fall of the shah, has been hospitalized in Tehran with
pneumonia for the past week, the Iranian news agency Pars reported
today.
    Bazargan, 75, whose condition was described as satisfactory, was
visited by friends and major government officials, including his
successor, Prime Minister Mohammad Ali Rajai, Pars said.
    Bazargan was the leader of the Free Iran Movement, a
religious-oriented offshoot of the National Liberation Front, founded
by former Prime Minister Mohammad Mossadeq. Bazargan served in
Mossadeq's short-lived Cabinet in 1953, which ruled during a brief
exile of the late Shah Mohammad Reza Pahlavi.
    He was also head of the Iranian Oil Co., which was nationalized by
Mossadeq in 1953.
    Bazargan became prime minister after the revolutionary regime of
Ayatollah Ruhollah Khomeini ousted the shah's government and took
power in February 1979. He resigned in November 1979 partly because
his government had not been informed ahead of time by militants who
seized the U.S. Embassy in Tehran on Nov. 4 and took a number of
Americans hostage. Fifty-two Americans remain in captivity.
    
ap-ny-12-03 1132EST
**********

a025  0023  04 Dec 80
PM-Yamani,440
Saudi Oil Minister Says Oil Prices Won't Rise Much
Eds: A version of this story moved on the financial wire
    NEW YORK (AP) - Global crude oil supplies ''will be no problem''
next year despite the war between Iran and Iraq, says Saudi Arabian
oil minister Sheikh Ahmed Zaki Yamani.
    Quoted in today's edition of Platt's Oilgram News, a daily trade
newspaper, Yamani also predicted world oil prices will not rise much
soon and that ''there will be a (petroleum) supply surplus'' in 1982.
    Yamani was interviewed by the newspaper in Riyadh, the Saudi Arabian
capital.
    Saudi Arabia - world's largest oil exporter and supplier of about 8
percent of America's oil needs - last raised petroleum prices in
September, when it boosted the price of its main grade of oil from $28
to $30 for a 42-gallon barrel.
    The Saudis recently raised their daily petroleum production from 9.5
million to 10 million barrels to help meet shortages caused by the
Iran-Iraq war. However, Yamani said his country would not maintain the
extra production indefinitely or even until the war ends.
    The war between the two members of the Organization of Petroleum
Exporting Countries resulted in the loss in late September of about
3.7 million barrels of oil exports a day - about 7 percent of Western
oil needs - and sent prices of individual oil cargoes up by about $10
a barrel on spot markets.
    Spot prices began to decline recently after Iraq resumed shipments
of more than 400,000 barrels of oil a day through pipelines to
Mediterranean ports and Iran started limited exports from Persian Gulf
ports.
    Yamani did not say when Saudi Arabia might curtail its extra oil
production, telling the newspaper his country plans to set output
levels ''mostly'' on a month-by-month basis.
    The newspaper said Yamani expects a scheduled Dec. 15 OPEC oil
ministers' meeting in Bali, Indonesia, to take place despite the war.
    It is possible the ministers will reach some ''common
understanding'' on oil prices, but chances of getting the cartel's 13
members to agree on a unified oil-price system for 1981 are ''rather
slim,'' Yamani was quoted as saying.
    John Lichtblau, executive director of the Petroleum Industry
Research Foundation, said OPEC members ''may try to continue the
existing (oil-price) structure into next year'' if they decide not to
set a new price schedule for 1981.
    OPEC prices jumped about 150 percent between the end of 1978 and
last summer following the Iranian revolution and a sharp drop in
Iran's oil output. The increase triggered in a drop in oil use by the
West and resulted in a buildup of world oil inventories that has
insulated consumers from much of the impact in the falloff in exports
from Iran and Iraq.
    
ap-ny-12-04 0323EST
**********

a028  0050  04 Dec 80
PM-Syria-Jordan, Bjt,450
Seek Face-Saving Solution To Syria-Jordan Crisis
Laserphoto NY5
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - Saudi Arabia sought a face-saving solution
today to the crisis between Syria and Jordan. ''It's a question of
semantics,'' said one diplomat.
    Prince Abdullah bin Abdul-Aziz, Saudi Arabia's deputy premier and
national guard commander, flew home to Riyadh on Wednesday evening for
more consultations with Crown Prince Fahd and King Khaled after
meeting with President Hafez Assad in Damascus and King Hussein in
Amman, Jordan.
    Foreign diplomats and political observers believed a settlement of
the crisis hinged on finding words that would satisfy Assad and at the
same time not imply that his charges against Hussein were true.
    Syria accused Jordan of training and supplying terrorists of the
anti-Assad Moslem Brotherhood and demanded that it hand over dozens of
the terrorists it said escaped a crackdown last fall and fled to
Jordan.
    Assad also demanded a pledge from Hussein, backed by Saudi Arabia,
that he would not try to bypass the Palestine Liberation Organization
in a Mideast peace initiative with the Reagan administration.
    Jordanian officials in Amman reported Tuesday that agreement had
been reached on a statement by Hussein, but Jordanian Information
Minister Adnan Abu Auden denied this.
    ''Acceptance of ... Syrian conditions would signify that we accept
the Syrian assumption that we are guilty of the false charges leveled
against us,'' he said.
    Jordan denies it is supporting the Moslem Brotherhood, which Assad
holds responsible for 200 killings in 18 months in Syria. The Amman
government also says Hussein has not deviated from the 1976 Arab
summit decision that the PLO is the sole representative of the
Palestinian people.
    The Saudi envoy's meetings with the two rival leaders Wednesday were
his second with them this week. After his four-hour session with
Assad, a Syrian official said there was a ''possibility for improving
the present Arab situation,'' the Syrian news agency reported.
    Hussein, wearing the black beret of the armored corps and a khaki
uniform with field marshal's insignia, was shown on Jordanian
television touring the front lines, exchanging bear hugs and kisses
with his cheering troops.
    He rushed 30,000 of his men and hundreds of tanks to the frontier
last week in response to Assad's deployment of 50,000 troops and 1,200
tanks. The U.S. government was reported ready to ship Hussein more
spare military parts and ammunition, but no shots have been fired so
far.
    Syria boycotted the Arab League summit Hussein hosted in Amman two
weeks ago to block a plan to designate Hussein the Arabs'
representative in Mideast peace talks with Reagan. Assad also wanted
to stay away from any resolutions supporting Iraq in its war with
Iran. Syria and Iraq are longtime enemies, and Syria is siding with
Iran.
    
ap-ny-12-04 0350EST
**********

a048  0308  04 Dec 80
PM-Hostages,660
U.S. Tells Iran It Can't Implement Hostage Demands
By MARK SMITH
Associated Press Writer
    WASHINGTON (AP) - The United States has informed Iran that President
Carter can't implement to the letter the four demands for releasing
the 52 American hostages, Secretary of State Edmund S. Muskie says.
    But, he adds, the U.S. government will do all it can to observe the
spirit of the four demands set down more than a month ago by the
Iranian Parliament.
    ''A literal reading of the (parliament's) proposal is beyond the
president's authority to implement,'' Muskie told reporters Wednesday.
''But he can go a significant way and indeed a substantial way
towards the objectives of that resolution.
    ''We have undertaken to indicate (to Iran) we are willing to do
that, we cannot go beyond that, and the Iranians must understand it,''
he added.
    As Muskie spoke, his deputy, Warren Christopher, was wrapping up two
days of talks with Algerian intermedaries.
    Christopher, who returned here early today, met in the Algerian
capital with Foreign Minister Mohamed Benyahia and a three-man panel
that has been acting as go-between for the United States and Iran.
    ''Although our answers or clarifications themselves are quite short,
we had a full opportunity to explain to the Algerian delegation and
the Algerian foreign minister how they will work and how they will be
carried out,'' Christopher told reporters upon his arrival at Andrews
Air Force Base outside Washington.
    ''This involves a good deal of time and complexity because we're
dealing with three different languages, different legal systems and
some highly complicated financial matters,'' he told reporters upon
returning shortly after 4:30 a.m. EST.
    Christopher is scheduled to brief President Carter and Muskie later
today.
    Before leaving Algiers for home, Christopher said he ''felt a heavy
responsibility not to raise expectations in this matter.'' But he
added, ''I feel the process is continuing to move forward.''
    Swedish radio, meanwhile, reported today that 49 of the hostages
were moved from the U.S. Embassy in Tehran to a secret location in the
Iranian capital last Friday and no longer are guarded by the Islamic
militants who held them for almost 13 months. The other three
hostages remain at the Iranian Foreign Ministry, Swedish radio's
Tehran correspondent Agneta Ramberg said.
    Iranian officials denied similar reports last week.
    ''The fact the the hostages no longer are held by occupants but by a
government puts the government in a more difficult and vulnerable
position, increases international pressure and makes for a state of
things that cannot last very long,'' the Swedish correspondent said.
''The Iranian government seems to be aware of all these things, and
that is why it is unwilling to admit that it has taken over control of
the hostages.''
    Christopher's talks with the Algerians concerned the latest version
of the U.S. response to demands listed by Iran's Parliament Nov. 2.
    Those demands were return of the wealth of the late Shah Mohammad
Reza Pahlavi to Iran, termination of lawsuits filed in American courts
against Iran, a pledge of non-interference in Iranian affairs and a
promise to free more than $8 billion in Iranian assets frozen by
President Carter shortly after the U.S. Embassy in Tehran was seized
Nov. 4, 1979.
    Sources said Christopher asked the Algerians to offer the U.S.
government's ''assistance'' in fighting the legal claims against Iran
and its help in locating the whereabouts of at least some of the
shah's fortune.
    The sources said there is no U.S. objection to the two other
conditions - the pledge of non-interference and unfreezing the assets.
    Christopher would not discuss details of the American position. But
he said Algeria's ambassadors to Washington and Tehran, Rehda Malek
and Abdelkrim Gheraib, and Mohammad Seghir Mostefai, the chairman of
the Algerian Central Bank, now are well versed in all of the
position's details.
    Malek and Gheraib reportedly were on their way to Tehran to transmit
the American response.
    ''Whether or not we have finally reached the point where each side
fully understands what the other side's position is is a question that
we'll have a better answer to when we get a response to Mr.
Christopher's latest visit to Algeria,'' Muskie said.
    
ap-ny-12-04 0608EST
**********

a058  0411  04 Dec 80
PM-Hostages, 1st Ld-Writethru, Precede Washington, a048,820
URGENT
Eds: Hostages may be tried if US response negative, captives not
transferred to Iranian government custody yet, new info, editing
throughout
By The Associated Press
    The American hostages will be freed, stand trial, or have their fate
decided by Iran's Parliament depending on the latest U.S. response to
Iran's demands, and so far the Iranian government has not taken
complete custody of the captives, a top Iranian official said today.
    The official, Bhzad Nabavi, minister of state for executive affairs
who is head of a state committee charged with carrying out the
Iranian Parliament's conditions for the release of the hostages, told
a news conference in Tehran he will meet with the Algerian envoys
carrying the U.S. response as soon as they arrive late today.
    ''We are not going to negotiate with them. We are only waiting for
the response. If the response if positive, the release will be done.
If negative, we will give the hostages to the court for trial, and if
the response is halfway, that is some conditions are accepted and
some not, we will ask the Majlis (Parliament) to tell us what to do,''
Nabavi said.
    He added: ''At present the government is taking the hostages but the
transfer of the hostages has not been completed yet because of some
security considerations and other things.
    ''Transferring the hostages who are dispersed in different cities
and places and preparing a suituable place for them - we cannot keep
them in our prison - takes time. Thus we should find a safe place for
keeping them.''
    Swedish Radio's correspondent in Tehran said that 49 of the hostages
were moved from the U.S. Embassy in Tehran to a secret location in
the Iranian capital last Friday and no longer are guarded by the
Islamic militants who seized them 397 days ago. The other three
hostages remain at the Iranian Foreign Ministry, the correspondent
said. Iranian officials denied similar reports last week.
    Secretary of State Edmund S. Muskie told reporters in Washington
Wednesday that the United States has informed Iran that President
Carter can't implement to the letter the four demands for releasing
the hostages, but he added the U.S. government will do all it can to
observe the spirit of the four demands set down more than a month ago
by the Iranian Parliament.
    ''A literal reading of the (parliament's) proposal is beyond the
president's authority to implement,'' Muskie said. ''But he can go a
significant way and indeed a substantial way towards the objectives of
that resolution.
    ''We have undertaken to indicate (to Iran) we are willing to do
that, we cannot go beyond that, and the Iranians must understand it,''
he added.
    As Muskie spoke, his deputy, Warren Christopher, was wrapping up two
days of talks with Algerian intermedaries.
    Christopher, who returned here early today, met in the Algerian
capital with Foreign Minister Mohamed Benyahia and a three-man panel
that has been acting as go-between for the United States and Iran.
    ''Although our answers or clarifications themselves are quite short,
we had a full opportunity to explain to the Algerian delegation and
the Algerian foreign minister how they will work and how they will be
carried out,'' Christopher told reporters upon his arrival at Andrews
Air Force Base outside Washington.
    ''This involves a good deal of time and complexity because we're
dealing with three different languages, different legal systems and
some highly complicated financial matters,'' he told reporters upon
returning to Washington shortly after 4:30 a.m. EST.
    Christopher is scheduled to brief President Carter and Muskie later
today.
    Before leaving Algiers for home, Christopher said he ''felt a heavy
responsibility not to raise expectations in this matter.'' But he
added, ''I feel the process is continuing to move forward.''
    Christopher's talks with the Algerians concerned the latest version
of the U.S. response to demands listed by Iran's Parliament Nov. 2.
    Those demands were return of the wealth of the late Shah Mohammad
Reza Pahlavi to Iran, termination of lawsuits filed in American courts
against Iran, a pledge of non-interference in Iranian affairs and a
promise to free more than $8 billion in Iranian assets frozen by
President Carter shortly after the U.S. Embassy in Tehran was seized
Nov. 4, 1979.
    Sources said Christopher asked the Algerians to offer the U.S.
government's ''assistance'' in fighting the legal claims against Iran
and its help in locating the whereabouts of at least some of the
shah's fortune.
    The sources said there is no U.S. objection to the two other
conditions - the pledge of non-interference and unfreezing the assets.
    ''Whether or not we have finally reached the point where each side
fully understands what the other side's position is is a question that
we'll have a better answer to when we get a response to Mr.
Christopher's latest visit to Algeria,'' Muskie said.
    
ap-ny-12-04 0710EST
**********

a059  0416  04 Dec 80
PM-War Rdp,300
Iraq Claims Destroying Iranian Naval Bases
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraqi forces destroyed two Iranian naval
bases and set four warships ablaze in the second major sea battle of
the 74-day-old Persian Gulf war, the Baghdad command said today.
    An Iraqi communique said the bases were destroyed at the entrance of
the Khor-Mousa canal and the ships set ablaze in a two-day sea battle
with air support.
    Khor-Mousa controls the shipping lane at the northern rim of the
Persian Gulf into Iran's commercial port of Bandar-Khomeini, named
after Islamic revolutionary leader Ayatollah Ruhollah Khomeini.
    The port, in Iran's embattled oil province of Khuzistan is the site
of a Japanese-built petrochemical compound that has been frequently
bombed by Iraqi warplanes.
    Iran made no mention of the Khor-Mousa sea battle, which flared 40
miles east of Iraq's off-shore oil loading terminal of Mina al-Bakr,
the site last weekend of the war's heaviest sea battle.
    Iran said its counterattacking forces scored fresh victories in all
major theaters of the 300-mile warfront and its president, Abolhassan
Bani-Sadr, said, ''The second phase of the war to expel the enemy
from Iran has begun.''
    The official Iranian news agency Pars said Iran's forces
counterattacked near Susangerd Wednesday, destroying Iraqi equipment
and forcing Iraqi forces to retreat from a nearby village.
    Iranian communiques claimed 127 Iraqi troops killed in the Khuzistan
fighting and at the strategic highlands 300 miles to the north in
Western Iran, conceding five Iranian dead.'
    Iraq claimed 54 Iranians deaths in Khuzistan and the highlands. The
highlands command the main highways from Iran's western border 100
miles west to Baghdad, the Iraqi capital.
    
ap-ny-12-04 0716EST
**********

a068  0508  04 Dec 80
PM-Hostages, Insert, a058,100
UNDATED Insert after 1st graf: Militants also say hostages not moved
    One of the militants occupying the U.S. Embassy in Tehran for nearly
13 months also said the Americans have not been transferred. ''We
have not delivered the hostages yet. We will announce it in a
statement when we do,'' he said when contacted by telephone by The
Associated Press in Beirut, Lebanon.
    The Iranian official, Bhzad Nabavi, minister of state for executive
affairs who is head of a state committee charged with carrying out
the Iranian Parliament's conditions for the release of the hostages,
told a news conference in Tehran he will meet with the Algerian envoys
carrying the U.S. response as soon as they arrive late today.
    ''We are: 3rd graf
    
ap-ny-12-04 0808EST
**********

a231  1238  04 Dec 80
AM-US-Poland, Bjt,500
U.S. Officials Say Polish Situation ''Delicate''
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - U.S. officials said Thursday that the Polish
crisis remains ''very delicate and sensitive'' and again warned the
Soviet Union that Americans are united in their concern over the
possibility of Russian intervention.
    Secretary of State Edmund S. Muskie told reporters in Topeka, Kan.,
that the administration believes the Russians have launched ''an
unprecedented amount of military activity'' along the Polish border
and added:
    ''It continues to be a very delicate and sensitive situation. The
military activities continue to concern us and all countries in the
West.''
    Later, after an address in Manhattan, Kan., Muskie was asked
directly if he expects the Soviets to invade Poland.
    ''It's clear the Soviets are reluctant to launch a military
intervention in Poland,'' he replied.
    He said the Russians already are bogged down in Afghanistan, the war
between Iraq and Iran is an added complication and the Kremlin is
concerned about the Strategic Arms Limitation Treaty and the threat of
further U.S. economic sanctions.
    He said the U.S embargo on grain sales to the Soviets, imposed after
the invasion of Afghanistan, ''certainly would be intensified'' if
Poland is invaded.
    In Washington, the State Department warned the Soviet Union that
Americans are united in their concern about any attempt to intervene
in Poland. And U.S. military officials said the Russians seem to have
done the groundwork required to move quickly if the Kremlin decides
to take action against its Warsaw Pact partner.
    At a State Department briefing, spokesman John Trattner said the
Soviets should be aware that ''we are one on this matter in this
country, not only in this administration but in the next one.''
    It was the third straight day that the Carter administration had
issued warnings to the Soviets that the United States is greatly
concerned that there be no outside inteference in Polish affairs.
    President Carter declared Wednesday that the United States was
watching with growing concern what he called an ''unprecedented
buildup'' of Soviet forces along the Polish border and pointedly
warned that ''the attitude and future policies of the United States
toward the Soviet Union would be directly and very adversely affected
by any Soviet use of force in Poland.''
    Other administration officials, including Muskie, have qualified
this concern by saying there is no evidence that the Soviets have
decided to intervene militarily in Poland.
    Trattner was hard-pressed to define ''unprecedented'' when asked at
Thursday's State Department briefing, but said the reference was not
to Soviet troops necessarily. In 1968, when the Red army pushed into
Czechoslovakia to snuff out a similar liberalization campaign, some
21 divsions were involved.
    Asked if there were differences about the scope of the Soviet
buildup within the administration, Trattner replied: ''Not even an
iota. We are dealing with semantics here.''
    He said the State Department stood behind Carter's remarks, and that
without trying to speak for the incoming Reagan administration, said
he was sure it shared the grave concern.
    ''I don't think we've seen anything like this for a long time,''
Trattner said of the Soviet military activity along the Polish border.
    But intelligence analysts and other officials, while reluctant to
dispute the president, suggested in private that Carter may have
overstated the buildup. Still, they agreed that it is potentially very
serious.
    ''There does seem to be some kind of a buildup,'' said one top
official, who asked anonymity. He noted that several under-strength
Soviet divisions in western Russia recently have been reinforced by
reservists.
    
ap-ny-12-04 1537EST
**********

a234  1306  04 Dec 80
AM-Syria-Jordan, Bjt,740
Syria Reportedly Will Withdraw Troops Gradually from Border
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - A Saudi Arabian mediator reported Thursday
that Syria had agreed to withdraw gradually its troops and tanks along
the border with Jordan, according to the Saudi news agency. This was
seen as defusing at least temporarily the threat of a second war in
the Middle East.
    The second deputy premier of Saudi Arabia, Prince Abdullah bin
Abdul-Aziz, made the statement after returning to Riyadh, the Saudi
capital, at the end of a four-day mediation shuttle between Damascus
and Amman, the Saudi news agency said.
    Syrian Information Minister Ahmed Iskandar Ahmed made comments that
observers took to mean Syria had achieved its objectives and there
would be no need to maintain the military buildup.
    Iskandar told reporters in Damascus, ''We are convinced now that the
Jordanian regime will seriously take into consideration what Syria
wants. This could be what we sought to achieve.''
    Although details of the reported agreement were not revealed, Syrian
observers said they expected President Hafez Assad to issue orders
soon to withdraw Syrian troops gradually from the border area.
    A spokesman for Hussein's government in Amman said Jordan had not
been informed officially of the reported withdrawal pledge.
    Jordanian Information Minister Adnan Abu Audeh was quoted by the
official Jordanian news agency as saying: ''Our confidence is in what
we see on the ground and in facts. We will judge this report when we
see the last Syrian soldier ... withdrawn.''
    Diplomatic sources in Amman said Jordanians officials believe the
tension between the two countries had eased in the past two days,
mainly because they think if the Syrians had wanted war they would
have attacked by now.
    Syrian officials said earlier a ''follow-up mediation'' by Arab
League Secretary-General Chadli Kleibi, due in Damascus on Saturday,
would complement Abdullah's peace-making shuttle.
    Kleibi's mission was seen by observers as trying to work out details
of reciprocal withdrawals from both sides of the 180-mile border.
    Syria, which sympathizes with Iran in its war with Iraq, began the
buildup Nov. 20. It sent 50,000 troops and 1,200 tanks to the border
and Jordanian King Hussein, who supports Iraq in the war, moved 30,000
men to positions jst six miles south of the Syrian deployment.
    Abdullah, who acted as personal envoy of Saudi Arabian King Khaled
during talks with Hussein and Assad, proclaimed his mission
''successful'' in both Amman and Damascus.
    The Syrians have listed two basic conditions for ending the crisis:
    - That Jordan should stop helping guerrillas of the outlawed Moslem
Brotherhood, the fundamentalist movement Syria blames for bombings
and political assassinations that claimed the lives of more than 200
Assad supporters in the past two years.
    - That Hussein pledge not to take over the role of Yasser Arafat's
Palestine Liberation Organization as representative of the
Palestinians and embark upon a separate move with U.S. President-elect
Ronald Reagan to shape a Middle East peace plan that would exclude
Syria and the Soviet Union.
    Government spokesmen in Amman said Hussin had rejected the concept
of ''dictated terms.'' But they said the king assured Abdullah that
Jordan does not support the brotherhood.
    Jordan's information minister declared in a statement Wednesday that
Jordan recognizes the PLO as the sole representative of the
Palestinian people and no reversal of this policy is contemplated.
    Knowledgeable Arab diplomats in Beirut, Lebanon, said Abdullah
probably used Jordan's public denials as Saudi-guaranteed pledges of
no support for the brotherhood and no betrayal of the PLO to allay
Syria's fears. The Syrians, in return, agreed to pull back their
forces and Hussein thus was spared the humiliation of giving in to
military pressure, the sources added.
    Diplomatic sources in Beirut described the border crisis as an
effort by Syria to insure that it and the Soviet Union would have a
say in any eventual Middle East peace agreement.
    The sources said Assad would not have risked sending troops to the
border without definite goals in mind.
    In the long term, observers in Beirut said the border crisis, which
reportedly has resulted in an Iraqi buildup on its border with Syria,
might improve Syrian and Soviet relations with Iran.
    By challenging Hussein, Iraq's most vocal backer, the Syrians
augmented the goodwill they already have gained with Iran for
reportedly helping them with airlifted supplies, the observers said.
    The Soviets, who signed a 20-year friendship treaty with Syria this
week, possibly also gained stature in the eyes of Iranians, the
observers added.
    
ap-ny-12-04 1601EST
**********

a009  2218  04 Dec 80
PM-US-Poland, Bjt,650
US Rhetoric Cools in Polish Crisis
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - The Carter administration, in an apparent move to
ease tensions, is assuring the Soviet Union that the United States is
not trying to exploit the unrest in Poland or revive the Cold War.
    ''It would be a pity if East-West relations were thrown back a
quarter of a century by the translation of an internal dilemma into
intensified East-West hostility,'' Zbigniew Brzezinski, President
Carter's national security adviser, said Thursday.
    ''I do not believe American interest would be served by that,'' he
added. ''I do not believe Soviet interest would be served by that. I
don't believe the cause of humanity would be served by that.''
    Brzezinski said his message to all parties is ''restraint,
moderation, compromise.''
    Both Brzezinski and Secretary of State Edmund S. Muskie said they
saw no prospect of an imminent Soviet invasion of Poland. At a news
conference in Kansas, in fact, Muskie said, ''It's clear that the
Soviets are reluctant to launch a military intervention in Poland.''
    Their remarks appeared to soften the approach taken Wednesday by
President Carter and White House officials expressing ''growing
concern'' over what they called an unprecedented buildup of Soviet
forces on the Polish border.
    However, Muskie continued to describe the situation as ''very
delicate and sensitive,'' and the State Department again cautioned the
Soviets that Americans are united in their concern over any possible
Russian intervention.
    Muskie, in Topeka, Kan., reiterated Carter's description of the
Soviet buildup as unprecedented and added: ''It continues to be a very
delicate and sensitive situation. The military activities continue to
concern us and all countries in the West.''
    But Brzezinski said of the Polish situation: ''We mustn't on the one
hand become almost hysterical about it and conclude that a massive
intervention is either imminent or inevitable.''
    He added, though, that Carter would not have issued his statement
Wednesday if he had considered the Soviet buildup insignificant.
    Brzezinski also appealed to all parties in Poland - workers, the
government and the Catholic Church - to exercise moderation, restraint
and compromise.
    He said the Carter administration has made it clear to the Soviet
Union that ''the United States has no interest in exploiting the
situation.''
    In a remark clearly designed to reassure the Soviet Union, where the
government-controlled press has accused the Carter administration of
promoting discord, Brzezinski said: ''We do not wish an explosion in
the center of Europe because we do not think this would be good for
East-West relations or world progress.''
    Poland's problems, he said, stem from a difficult economic situation
that the international economic community is trying to respond to
sympathetically.
    ''That response does not have any ulterior motives to it,''
Brzezinski said.
    In Kansas, Muskie said he believes the Soviets are reluctant to
launch a military intervention in Poland because they already are
bogged down in Afghanistan, the war between Iraq and Iran is an added
complication and the Kremlin is concerned about the Strategic Arms
Limitation Treaty and the threat of further U.S. economic sanctions.
    He said the U.S embargo on grain sales to the Soviets, imposed after
the Afghan venture, ''certainly would be intensified'' if Poland is
invaded.
    At the State Department, spokesman John Trattner said the Soviets
should be aware that ''we are one on this matter in this country, not
only in this administration but in the next one.''
    That statement was reinforced by Edwin Meese III, counselor to
President-elect Ronald Reagan.
    ''The Soviets would make a grave miscalculation if they perceive any
weakness in the structure during this kind of (transition) period,''
Meese said.
    
ap-ny-12-05 0118EST
**********

a055  0411  05 Dec 80
PM-Foreign Briefs,375
    LONDON (AP) - The British Appeals Court has set aside a divorce
decree granted to a mechanic whose wife refused to have sex with him
more than once a week.
    ''It seems quite impossible for any court to find that the refusal
by a wife to have sex more often than once a week is unreasonable,'' a
three-judge panel said Thursday. ''It seems an extraordinary
proposition.''
    ''I am very unhappy,'' the mechanic, David Mason, 30, said after the
decision. ''It's all right for the judges to say it is not
unreasonable. I had to live with it.''
    ---
    THE HAGUE, Netherlands (AP) - Dutch millionaire Pieter Menten,
serving a ten-year sentence for war crimes , was transferred today
from prison to a general hospital following a deterioration in his
health, the justice minsitry said.
    A government spokesman said the 81-year-old art collector's
condition was ''generally stable'' and there was no crisis.
    Menten was convicted of taking part in the Nazi massacre of between
20 and 30 Jews in Poland during World War II, a charge he denied.
    ---
    JAKARTA, Indonesia (AP) - Indonesia today suggested postponing a
summit meeting of the Organization of Petroleum Exporting Countries
scheduled for December 15-16 on the Indonesian isle of Bali.
    Santoso Donoseputro, deputy chairman of the Energy and Foreign
Investment Commission, said the meeting should be postponed until the
Arab oil-exporting nations regained political stability. He cited
divisions in the group over the Iraq-Iran war and the disruption of
those two nations' oil supplies as two possible sources of dissension
at the meeting.
    ---
    LONDON (AP) - Patrick Cullen, an Irish palmist who claimed he also
could predict the future by reading women's breasts and bottoms, is
dead at 69.
    The Guardian daily reported Cullen's death on its front page today
under the headline ''Palmy days of mammary maestro.''
    Cullen, who called himself ''Professor,'' had a fortune-telling
booth for many years on the pier at Hastings, a south England resort.
    He told clients he had learned during 26 years of world travels how
to foretell the shape of things to come by ''reading'' their breasts.
He daubed the breasts in poster colors then pressed a sheet of paper
against them for a life-size imprint.
    
ap-ny-12-05 0712EST
**********

a060  0445  05 Dec 80
PM-War Rdp,430
Iran, Iraq Attack Oil Installations
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Pebanon (AP) - Iraq and Iran pounded each other's oil
installations with artillery and jets today as Iran reported the
Persian Gulf war has turned 1 million of its people into refugees.
    Fresh fires were reported gutting the giant oil refining complex of
Iran's besieged city of Abadan and Iraq's major pipeline terminal of
Fao on the northern rim of the Persian Gulf.
    The two targets, 35 miles apart on the embattled Shatt al-Arab
estuary, have been hit by missile boats, jets and artillery almost
daily in the last five days.
    Communiques from Tehran and Baghdad said shells rained on Fao from
Iranian long-range artillery in Abadan, with Iraqi helicopter gunships
mounting raids on Abadan, apparently to silence the Fao barrage.
    Iranian communiques said close range combat raged for a strategic
bridge on the Karkheh River that commands the northeastern entrance
into Susangerd, 20 miles east of the Iraqi border in Iran's oil
province of Khuzistan.
    The communiques said both sides traded tank and helicopter gunship
assaults around the bridge as the town was shelled by Iraqi artillery.
    Iraq attempted to capture the city twice in the last two weeks. Iran
claimed to have repulsed both attacks in some of the heaviest street
battles of the 75-day-old Persian Gulf war. Susangerd's capture would
open a 30-mile highway for an advance on Khuzistan's capital of
Ahvaz.
    Iran claimed 290 Iraqi soldiers were killed in the fighting that
flared in Khuzistan's main areas of operations as well as the
strategic highlands 300 miles to the north, which command the main
highways froh western Iran to Baghdad, capital of Iraq some 100 miles
due west.
    Iraqi communiques claimed 115 Iranian fatalities in the same period
on all fronts and conceded 18 Iraqi deaths in the fighting around
Abadan and Susangerd some 85 miles apart in southwestern Iran.
    The war has made 1 million Iranians homeless, and Tehran authorities
have set up several tent camps to shelter the war refugees, Iran's
state minister for executive affairs, Behzad Nabavi, said.
    Tehran Radio said 10,000 people fled their homes in the embattled
highlands of the Kermanshah province in the foothills of the Zagros
mountain range alone.
    The Iraqis claim they overran 8,000 square miles of Iranian
territory in the first two weeks of the war and have since been
holding to their gains.
    Iran announced a major counter-offensive was launched on all fronts
to drive the Iraqis out. But there has been little change, if any, in
battlefield front positions.
    
ap-ny-12-05 0745EST
**********

a106  0903  05 Dec 80
PM-War Rdp, 1st-Ld, a060,200
Iran, Iraq Attack Oil Installations:Eds: Hand to hand fighting near
Susangerd, Iraqi attack on another Iranian oil compound. New grafs
1-5.
By FAROUK NASSAR
Associated Press Writer
    Iraq and Iran pounded each other's oil installations with artillery
and jet attacks today and their troops fought hand to hand behind
advancing tanks on the approaches to Iran's southwestern highway town
of Susangerd, war communiques said.
    Iran reported the Persian Gulf war has turned 1 million of its
people into refugees
    Iraq's Soviet-made Tupolev bombers raided Iran's gulf port of Bandar
Shahpour, wrecking the railway line and oil pipelines, according to
Iran's official news agency.
    Pars said immediate measures were ordered to repair the damage in
the important commercial port where a Japanese consortium built a
giant petrochemical compound that has been attacked frequently by
Iraqi warplanes in the 11-week-old war.
    Bandar Shahpour, which was renamed Bandar-Khomeini in tribute to
Islamic revolutionary leader Ayatollah Ruhollah Khomeini after the
1979 downfall of the monarchy, sits at the northeastern tip of the
Persian Gulf.
    Fires were reported gutting the giant oil refining complex of Iran's
besieged city of Abadan and Iraq's major pipeline terminal of Fao on
the northern rim of the Persian Gulf.
    The two: 3rd graf
    
ap-ny-12-05 1204EST
**********

a215  1221  05 Dec 80
Laserphoto NY48
    CHICAGO (AP) - A University of Illinois professor regarded as an
astute observer of Chicago politics is the latest recipient of a
nocom Mayor Jane Byrne.
    Milton Rakove, author of several books on Chicago politics, was
appearing Thursday night on WGN-Radio's ''Extension 720'' program when
Mrs. Byrne called the station.
    The mayor accused Rakove of having asked her to put relatives on the
city payroll when she was commissioner of consumer sales. She also
said Rakove's son-in-law had provided her with information on which
she based her cr Mayor Michael Bilandic of taxi
fare ''greasing,'' charges that eventually led to her dismissal by
Bilandic.
    Ironically, the mayor's unexpected phone call came shortly after
three guest panelists on the show had launched a defense in her
behalf.
    The controversial mayor has made a habit of telephoning reporters
late at night to comment on her coverage by the media.
    ---
    BALCH SPRINGS, Texas (AP) - This small Dallas County town was not
much in the news until Nov. 4, 1979, when Iranian terrorists seized
the U.S. Embassy in Tehran and Johnny McKeel was taken hostage.
    McKeel, a Marine Corps sergeant, is still being held, along with 51
other Americans, but his hometown is making big plans forhis return.
    Residents have formed a Welcome Home Johnny Committee, have invited
40 other Texas cities to participate and have asked Gov. Bill
Clements to take part in the ceremonies whenever McKeel and his fellow
captives return.
    Plans include a huge homecoming parade, fund raising for a permanent
plaque in Mcing of an oak tree in front of
City Hall which will be decorated with hundreds of yellow ribbons,
said organizer Patricia E''We don't know whether the City of Balch Springs will-
 be able to
hold everybody, but we decided to invite entire cities to participate
and if they come, we'll find a place for them,'' she said.
    ---
    DETROIT (AP) - Mayor Coleman Young expects to have surgea small cyst on a v-
ocal cord.
    The cyst causes a raspiness in the mayor's voice, and was discovered
during a physical . Claud Young, said Thursday.
    ''It's he mayor not
using his voice for two weeks?''
    ---
    CHARLESTON, W.Va. (AP) - Gov. Jay Rockefeller spent $11,648,000 for
his re-election campaign - apparently the most ever reported in  the United Sta-
tes.
    Rockefeller, one of the heirs to a vast family fortune, didn't need
much help from supporters to pay the expenses. A he secretary of state's office
showed Rockefeller, a Democrat, pumped $11,650,000 of his own money
into his succesful bid for a see did get some $245,000 from supporters, but rep-
orted a $247,000
campaign surplus.
    
ap-ny-12-05 1416EST
**********

a233  1358  05 Dec 80
AM-War Rdp, Bjt,480
Iraqi Jets Said to Destroy Iranian Port Oil Pipeline
By KATE DORIAN
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran said Iraqi bomber jets destroyed a main
oil pipeline in a Friday raid on the Iranian port of Bandar-Shahpur
and claimed its jets and artillery pounded the Iraqi oil terminal of
Fao for the second day.
    Iran said the Iraqis tried to shell a prayer congregation in Ahwaz,
capital of the southwestern oil-producing Khuzistan province. Three
people were killed and 23 wounded in the shelling, which missed its
main target, the official Pars news agency reported.
    An Iraqi communique broadcast by Baghdad Radio said Iraqi forces
killed 50 Iranian troops in day-long battles along various sectors of
the border and shot down five Iranian jets and one helicopter
gunship. Iraqi losses as a result of the day's fighting was put at 10
killed.
    An Iranian communique broadcast by Tehran Radio said the pipeline
and railway line at the major Persian Gulf port of Bandar-Shahpur were
destroyed as a result of the Iraqi air attack. Iranian authorities
issued immediate orders to repair the damage, Pars said. The chemical
complex there has been raided frequently by Iraqi jets since the war
erupted Sept. 22.
    Iraqi communiques said the giant Iranian oil complex in the besieged
city of Abadan was gutted by new fires as a result of concentrated
Iraqi air and long-range artillery attacks. They said Iraq's oil
terminal of Fao also came under heavy fire from Iranian artillery
positions in Abadan, 35 miles away.
    Iran said Iraqi helicopter gunships mounted daybreak raids on
Abadan, apparently in an attempt to foil the Iranian artillery attack
on Fao.
    Iranian communiques also reported heavy artillery and helicopter
gunship assaults in Khuzistan province as the two sides fought for
control of the strategic Kharkhe River bridge. The bridge gives access
to the town of Susangerd, 20 miles east of the Iraqi border.
    Hand-to-hand fighting was reported on the approaches to Susangerd,
where a key highway leads to Ahwaz. Tehran Radio reported 30 Iraqis
were killed in the Susangerd fighting.
    Pars reported that foreign correspondents were taken on a tour to
the Iranian prison at Qasr, where Iraqi prisoners of war are held.
Pars said the reporters were allowed inside the prison walls where
they saw ''a group of POWs playing volleyball and some other strolling
in the yard, apparently being quite carefree.''
    While Iran revealed that 1 million Iranians had been left homeless
as a result of the war, peace-making efforts continued. Cuban Foreign
Minister Isidoro Malmierca was in Baghdad on his fifth shuttle in two
months between the two warring nations trying to reach a negotiated
settlement.
    Iraq is insisting on sovereignty over the 120-mile-long Shatt
al-Arab waterway, its only sea outlet. Iraq has said it will withdraw
from a captured Iranian territory only if Iran agrees to Iraq's
territorial and offshore rights over the Shatt al-Arab.
    
ap-ny-12-05 1659EST
**********

a238  1436  05 Dec 80
AM-US-Hostages,390
Iran Urged to Act on Hostage Issue
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - The Carter administration has notified Iran that
further delay in reaching an agreement on the release of the 52
American hostages could jeopardize chances for a settlement early next
year, U.S. officials said.
    Even so, there is no sign yet of a breakthrough from Tehran and
differences over the terms set by the Iranian Parliament more than a
month ago remain unresolved, the officials said.
    The latest U.S. message - a five-page double-spaced explanation of
legal and technical problems - was delivered by Deputy Secretary
Warren M. Christopher to Algiers this week.
    Even as he left for Washington, a jet plane was warming up at the
airport to take Algerian mediators to Tehran with it, officials told
reporters. The officials made the remarks on the grounds they not be
identified publicly.
    The officials said they did not know when a reply might come from
Iran and whether it would call for further, indirect negotiations or
represent a final response.
    The 52 Americans were seized on Nov. 4, 1979, as Islamic militants
overran the U.S. Embassy in Tehran. All efforts to gain their freedom,
including a commando raid ordered by President Carter last April,
have failed.
    In trying to speed a settlement, a U.S. official said Friday, the
administration has transmitted to Iran statements by President-elect
Ronald Reagan pledging to abide by any agreement reached before he
takes office.
    At the same time, the official said, if there is no agreement by
Jan. 20 the new administration ''necessarily will wish to take time to
review'' the negotiations.
    ''We are, therefore, trying to make the maximum progress before Jan.
20,'' said the official, who barred use of his name.
    The four Iranian demands, first put forth in September by
revolutionary leader Ayatollah Ruhollah Khomeini, are a U.S. promise
not to interfere in internal affairs, release of more than $8 billion
in seized Iranian assets, cancellation of all American claims against
Iran and a return of the wealth of the late Shah Mohammad Reza
Pahlavi.
    Reagan, in a statement in mid-September, said the United States
should meet the first three conditions. Return of the property of the
late shah, he said, cannot be met ''without due process of law.''
    
ap-ny-12-05 1737EST
**********

a253  1600  05 Dec 80
AM-War Rdp, INSERT, a233,40
BEIRUT, Lebanon, to add Iran claiming air victories, INSERT after 5th
graf: Iraqi communiques ... miles away.
    In Khorramshar, just north of Abadan, Iran claimed its jets
destroyed seven Iraqi tanks and several other vehicles and killed ''a
considerable number of enemy personnel.'' Iran also reported
''intensive'' ground fighting around both Khorramshar and Abadan.
    Iran said, 6th graf
    
ap-ny-12-05 1901EST
**********

n074  1626  05 Dec 80
 
AM-PRICES
Wholesale Prices Broadly Up in November, Rate of Increase Slows
By EDWARD COWAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Producer prices continued to rise across a broad front
in November but at a slower pace than in October, the Labor
Department reported Friday.
    A scattering of declines for some food items helped to slow the
increase in the overall index of wholesale prices of finished goods -
those ready for retail sale - to 0.6 percent, as against 0.8 percent
in October. That was roughly in line with the increases that occurred
last spring and decidedly better than the July-August jumps averaging
roughly 1.5 percent a month.
    Analysts at the Bureau of Labor Statistics, which compiles the
government's price data, said the November performance of producer
prices pointed to increases in the consumer price index for November
and December of about 1 percent each, in line with recent months,
followed by an acceleration in 1981 driven by rising meat prices.
    The consumer price index is expected to continue to rise faster than
the producer price index because the former but not the latter
includes mortgage interest rates, which have been rising.
    For November, the BLS index for finished goods stood at 253.2 on a
1967 base of 100. That was 11.9 percent higher than a year ago. The
rise of 0.6 percent from October was calculated after allowance for
the usual seasonal swings.
    Food continued to exert a moderating effect on the index as it has
all through the year except during the mid-summer drought, when food
prices shot up. In all, prices for consumer foods in November were up
7.1 percent from a year ago, energy prices were up 28.1 percent,
other consumer goods advanced 11 percent and capital equipment was up
11.3 percent.
    Nariman Behravesh, an economist with Wharton Econometric Forecasting
Associates Inc., said the November results were ''a little bit lower
than I expected'' but did not materially alter the outlook. Wharton
anticipates that the index of finished goods will rise by 10.5
percent in the next 12 months.
    The November increase of 0.6 percent would if it continued for 12
consecutive months produce an increase of 7.9 percent in the index.
    In addition to the anticipated 1981 acceleration of food prices, due
mainly to grains and meat prices, analysts now expect significant
increases in energy prices because of the Iraq-Iran war, which has
cut deeply into Iraqi exports of oil, and the continuing decontrol of
American domestic crude oil prices.
    Decontrol is scheduled to be complete on Sept. 30, 1981 but
President-elect Ronald Reagan could remove the remaining controls
sooner.
    Wholesale prices of fuels rose 1.3 percent last month. Gasoline
advanced 1.7 percent after five consecutive declines that had helped
to slow the upward trend of the index. Heating oil rose 0.9 percent.
    Janet L. Norwood, the commissioner of labor statistics, told the
Joint Economic Committee of Congress that November employment figures
supported her earlier belief that ''the present recovery will
probably not bring about the sharp gains in productivity'' that have
accompanied earlier business-cycle upswings.
    That, too, was an unfavorable sign because improvements in
productivity - the overall efficiency of the production process -
usually make it possible for business to absorb part of any increases
in cost. Of late, analysts said, all cost increases have been passed
along in the form of higher prices. Mrs. Norwood noted that wages
have been rising at nearly 10 percent a year.
    Still more wage pressures on prices is expected following the Jan.
1, 1981 increase in the minimum wage to $3.35 an hour from $3.10 now.
Economists believe that increases in the minimum wage ripple up
through the wage structure as employers come under pressure to
maintain job differentials.
    The BLS index of prices of crude goods - livestock, grains, iron
ore, coal, natural rubber and so on - showed a 1.1 percent rise for
November as against 1.9 percent in October and midsummer surges
averaging 6 percent. However, intermediate goods - such as cement,
lumber, chemicals, tires and metal containers - posted a 1 percent
rise, as against 0.9 percent in October.
    Among consumer foods, October saw price declines for beef and veal,
processed poultry and packaged cocoa. Moving higher were pork, cereal
and bakery products, dairy products, peanut butter, candy, fresh
fruits and vegetables, pecans, vegetable oil and products and fish.
    In the nonfood group, over-the-counter medicines climbed by 2.5
percent, the third big rise in a row. Analysts said that higher costs
of chemicals, especially salicylic acid, the active ingredient in
aspirin, were responsible. Prescription medicines went up by 1.2
percent. Cosmetics and toilet preparations advanced by 2.2 percent to
a level 20.5 percent higher than a year ago.
    The October spurt in new-car prices slowed in November. Capital
goods went up by 0.6 percent, as against 1.4 percent in October.
    Among crude materials, coal jumped by 1.4 percent because of strong
foreign demand.
    In January 1981 the bureau will move natural gas prices from the the
crude goods group; half the weight of natural gas wil move to
finished goods because ''households purchase natural gas in an
essentially unprocessed form,'' the bureau said.
    Officials said that gradual deregulation of gas and rising oil
prices are expected to drive natural gas prices up each year for
several years. Consequently, the reclassification of natural gas will
impart some upward push to the finished goods index, with an opposite
effect for crude materials.
    
ny-1205 1927est
**********

n087  1808  05 Dec 80
 
AM-SYRIA
Saudi King Invites Syrian and Jordanian Leaders to Meeting
By PRANAY B. GUPTE
c. 1980 N.Y. Times News Service
    AMMAN, Jordan - King Khalid of Saudi Arabia has invited King Hussein
of Jordan and President Hafez al-Assad of Syria to Riyadh to find a
solution to the problems between Amman and Damascus, according to
Jordanian and other well-placed sources. A meeting of the three
leaders is reportedly being planned for early next week, perhaps
Sunday.
    The invitation was relayed to Hussein and Assad by Prince Abdullah,
who is the commander of the Saudi National Guard and a brother of
Khalid, when he visited both capitals this week to try to prevent a
war between Syria and Jordan. The two heads of state were understood
to have informed Khalid of their willingness to meet.
    An official Jordanian spokesman would not confirm Friday night that
a meeting would take place. Their last known direct contact was over
the telephone in September when they were reported to have had an
angry conversation over Syria's support of Iran and Jordan's backng
of Iraq in the present war between the two countries.
    Abdullah said in Riyadh Friday that Syria had agreed to remove its
troops gradually from an area near the Jordanian border, where it
deployed 35,000 troops and more than 500 tanks in the last 10 days.
After Syria's deployment, Jordan moved 24,000 troops and about 300
tanks into the hilly area on its side of the border.
    While Syria has not officially confirmed the agreement to pull back,
diplomatic sources in Damascus said Friday that some Syrian armored
units were apparently being moved back.
    Jordanian officials, including Adnan Abu Awdah, the minister of
information, have said over the last two days that they were aware of
reports of some Syrian troops being pulled back, although Western
diplomats and Arab sources said Friday that a heavy concentration of
the Syrian military still remained.
    The threat of a military attack by Syria is receding, foreign
diplomats and Jordanian officials believe, but the polemical
exchanges between the two countries continued Friday.
    The Damascus radio again accused Hussein of encouraging anti-Syrian
insurgents from a terrorist organization known as the Moslem
Brotherhood and of attempting to ursurp the role of the Palestine
Liberation Organization as the legitimate spokesman of the
Palestinian people. And in a political commentary Friday evening, the
Jordanian radio accused Syria of taking an anti-Arab line by
supporting non-Arab Iran in the war with ERTY TAXES THAT WAS OVERWHELMINGLY APP-
ROVED BY THE VOTERS ON
Nov. 4.
    The Senate version would spread the cost of running the system
throughout the state by using state revenues such as the sales and
income taxes. But it also would mean that residents outside the area
served by the system would have to pay even more than they are now
for a service they do not receive.
    In addition, pro-union sentiment has always been strong in the State
Senate and there is widespread suspicion that the deadlock involves
an effort to weaken the bill's labor and cost-control provisions.
    Business leaders warned legislators that a shutdown, coming at the
height of the Christmas shopping period, would have a serious effect
on the city's economy. In addition, the shutdown would result in the
layoff of 6,700 transit employees.
    
ny-1205 2108est
**********

a004  2206  05 Dec 80
PM-Topic-Expensive School, Bjt,660
TODAY'S TOPIC: Each Boy In A Class By Himself
By DEAN GOLEMBESKI
Associated Press Writer
    WESTBROOK, Conn. (AP) - Despite a $12,650 annual tuition that would
make most universities blanch, tiny Oxford Academy is no longer
listed in the Guinness Book of World Records as the ''World's Most
Expensive School.''
    But the prep school's headmaster shrugs off loss of the ''title,''
saying Oxford's unique program still puts each student in a class by
himself, literally.
    ''What we have that no one else has is one-to-one teaching,'' said
Jonathan Woodhall, explaining that Oxford's one-student classrooms for
boys with ''academic deficiencies'' are not duplicated anywhere in
the world.
    The distinction of being the world's most expensive school,
according to Guinness, now belongs to L'Institut Le Rosey in Rolle,
Switzerland, which charges about $15,000 for a 12-month academic year.
    Oxford charges each of its 40 boys $12,650 for eight months, or
about $1,581 a month. Costs at the Swiss school would break down to
about $1,250 a month.
    The school is rather dreary-looking considering its tuition and
clientele. The entire campus consists of three one-story brick
buildings tucked on a two-acre lot in a residential neighborhood
overlooking Long Island Sound. A soccer field behind one of the
buildings is all that distinguishes the school from a motel.
    Nevertheless, this year's students come from all over the United
States, as well as China, Japan, Nigeria, Iran, West Germany and
Mexico, Woodhall said. And there is a waiting list.
    Oxford calls its teaching program the Oxford Method of
Individualized Education. It puts each student on a program that has
been tailored to meet his individual needs.
    The boys, who can range in age from 12 to 20, suffer such
''deficiencies'' as learning disabilities, weak educational background
and poor study habits. The biggest problems are said to be reading
disabilities and an inability to concentrate on school work.
    A prerequisite for being admitted to Oxford, according to the school
catalogue, is that a boy be ''sound physically, morally and
intellectually.'' No boy with drug, alcohol or discipline problems is
admitted.
    ''We don't have any problem kids, no thanks,'' said Woodhall. ''On
the average they are of superior intelligence. The smarter ones seem
to get into more trouble academically.''
    The final step in the admission process requires a prospective
student to write a letter to the admission committee explaining why he
wants to attend Oxford.
    ''What we want to know is, does he want to come here or does his
father have a shotgun to his head?'' Woodhall explained.
    The 20-minute classes begin at 8:15 a.m. and end at 3 p.m.,
including breaks, lunch and study periods. A student carries from
three to six classes, depending on ability, and is assigned at least
one hour of homework.
    After classes, there is one hour for athletic activities, followed
by a half-hour of mandatory newspaper reading. There is a final study
period from 7:30 p.m. to 8:45 p.m., followed by free time until
lights out at 11 p.m.
    Saturday morning is spent taking tests based on the week's studies.
Sunday night is spent studying for Monday. Those boys who run afoul
of the rules are required to serve detention on Saturdays or Sundays,
during which time they copy the student handbook.
    Students stay an average of two years and Woodhall claims a 90
percent success rate in curing learning problems.
    The schedule is demanding, but Woodhall noted that the students
chose it. When interviewed, the boys said they like the school because
it has given them confidence in their academic abilities. They also
like being free to do as they wish in their free time. There is also
no dress code, and none of the trappings of a military school.
    
ap-ny-12-06 0107EST
**********

a014  2323  05 Dec 80
PM-Economy Rdp, Bjt,630
Gas And Food Prices Rising
By GLENN RITT
Associated Press Writer
    WASHINGTON (AP) - Gasoline prices at the wholesale level are on the
rise for the first time since spring, while food prices are still
climbing, the government says.
    Those increases fueled an 0.6 percent rise in wholesale prices last
month - and while that was a smaller increase than the previous
month, inflationary pressures still are intense, economists say.
    The Labor Department reported Friday that wholesale, or producer,
prices accelerated at a 7.9 percent annual rate in November, but they
have advanced at a 12 percent yearly clip during the first 11 months
of 1980.
    Meanwhile, the Labor Department said the unemployment rate dropped
slightly from 7.6 percent to 7.5 percent, as the number of people
holding jobs rose by 220,000.
    ''The November data provide further evidence of the gradual
improvement (of the economy) that has been in effect since late
summer,'' said Janet Norwood, commissioner of the Bureau of Labor
Statistics.
    But, she said, rising interest rates and the prospect of more food
price hikes could provide ''fairly quick'' impact on unemployment.
    ''There is a dark lining in our silver cloud,'' said Sen. Lloyd
Bentsen, chairman of Congress' Joint Economic Committee. ''We cannot
take much comfort in a single month of good news'' with interest rates
rising.
    A day after the Federal Reserve increased its discount rate to 13
percent, major banks boosted their prime lending rate to 19 percent,
very close to the record 20 percent level of last spring.
    The high interest rates once again are hurting the housing industry,
while automakers are becoming increasingly alarmed that the situation
will choke off sales and force decreased production of new models.
    In November, however, the unemployment rate for workers in the auto
industry continued to show marked improvement, Ms. Norwood said. ''At
14.9 percent, this unemployment rate is about one-half the peak in
May,'' she noted.
    The nation's overall unemployment rate has shown little change since
May, when recession sent joblessness soaring to a peak of 7.8
percent. In the last four months, the rate has wavered between 7.6
percent and 7.5 percent of the labor force.
    Many private economists see joblessness rising to 8 percent by the
beginning of next year if high interest rates persist and eat into
consumer sales.
    The Labor Department said the wholesale price of consumer-ready food
increased 0.5 percent in November, the same as in October. And
economists expect further advances through 1981 due to grain shortages
that are sure to affect what people pay for beef, poultry, eggs, pork
and baked goods.
    In addition, gas prices last month climbed 1.7 percent, the first
jump in six months. And the Council on Wage and Price Stability said
these prices ''were almost certain to rise at double-digit rates over
the next year.''
    Potential supply shortages from the continuing Iran-Iraq war could
help push that annual inflation rate as high as 40 percent, the
council warned.
    Also worrisome, said Labor Department economist Craig Howell, is a
November price jump for intermediate wholesale items such as plastics,
chemicals and steel.
    The Labor Department refers to its wholesale price report as the
Producer Price Index for finished goods, which surveys items ready for
sale at retail, such as an assembled car. It also measures prices for
goods at the intermediate, or semi-processed stage, such as rolled
steel, and at the crude level, such as iron ore or wheat.
    Intermediate goods rose 1 percent in price last month, compared with
a 0.9 percent increase in October and a 0.6 percent boost in
September. Raw prices went up 1.1 percent.
    
ap-ny-12-06 0224EST
**********

a027  0052  06 Dec 80
PM-US-Hostages,310
Latest Move Up To Iran
    WASHINGTON (AP) - U.S. officials are waiting again for the latest
reply from Iran in the complicated, long-distance negotiations aimed
at freeing the 52 U.S. hostages held by Iran.
    The latest U.S. message in the negotiations over the four demands
laid down by the Iranian parliament was delivered this week to
Algiers, which is acting as an intermediary since the United States
and Iran have no diplomatic contact.
    That double-spaced, five-page answer details legal and technical
problems the United States would have in meeting the demands. There
was no indication here Friday when there would be a reply from Iran.
    The hostages have been held since Nov. 4, 1979, when Islamic
militants overran the U.S. Embassy in Tehran. Efforts to gain their
freedom, including a commando raid ordered by President Carter last
spring, have failed.
    In trying to speed a settlement, a U.S. official said Friday, the
Carter administration has transmitted to Iran statements by
President-elect Ronald Reagan pledging to abide by any agreement
reached before Reagan takes office.
    At the same time, the official said on the condition he not be
identified, if there is no agreement by Jan. 20 the new administration
''necessarily will wish to take time to review'' the negotiations.
    ''We are, therefore, trying to make the maximum progress before Jan.
20,'' said the official,
    The four Iranian demands include a U.S. promise not to interfere in
internal affairs, release of more than $8 billion in seized Iranian
assets, cancellation of all American claims against Iran and the
return of the wealth of the late Shah Mohammad Reza Pahlavi.
    Reagan, in a statement in mid-September, said the United States
should meet the first three conditions. Return of the property of the
late shah, he said, cannot be met ''without due process of law.''
    
ap-ny-12-06 0353EST
**********

a044  0325  06 Dec 80
PM-War Rdp,430
Iran Attacks Kurdish Areas, Iraq Claims Five Iranin Warplanes
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian warplanes struck Kurdish-populated
northern Iraq today, Iraq said, in attacks apparently aimed at cuttig
supply routes to autonomy-seeking Kurdish insurgents in northwestern
Iran.
    The Iraqis claimed they shot down five U.S.-built Iranian warplanes,
war communiques reported.
    Each nation claimed fresh helicopter raids against the other's
positions in Iran's embattled southwestern oil province of Khuzistan
as their major oil installations on the northern flank of the Persian
Gulf remained ablaze.
    Group troops fought in Iran's western highlands that command the
closest highways to the Iraqi capital of Baghdad, some 100 miles to
the west, according to Iraqi and Iranian communiques.
    But despite rival claims of gains on the major theaters of combat,
there were no major changes in positions along the 300-mile
battlefront as the Iran-Iraq war finished its 11th week.
    The main targets of Iranian air strikes were the cities of
Suleimaniyeh and Darbandikhan, which were bombed and strafed in six
raids Friday and today, Iraqi communiques said.
    The two cities control cross-border highway and railroad track
routes to Kurdish areas in northwestern Iran.
    The latest report from Iran's official Pars news agency said about
80 Kursish rebels were killed near the city of Mahabad, where Kurds
declared a short-lived breakaway republic during World War II.
    The Tehran high command claimed its Islamic guards crushed another
Kurdish rebellion near the Turkish and Iraqi borders early in November
and accused Iraq of aiding the insurgents.
    The estimated eight million Kurds in the Middle East want their own
state on territory carved out from southeastern Turkey, northern Iraq
and northwestern Iran. They have fought several rebellions since the
turn of the century and consider themselves ethnically different from
the Persian Iranians and the Iraqi Arabs.
    Baghdad Radio broadcast a communique from the Iraqi command saying
two F-5 Iranian jets were downed by Soviet-made MiG-21 Iraqi fighters
in Suleimanieh and two more F-5s and one Phantom F-4 fighter-bomber
were brought down by ground fire in Darbandikan.
    The communique said Iraqi helicopter gunships raided enemy positions
in Khuzistan's main cities of Abadan, Ahvaz and Susangerd, touching
off new fires in Abadan's giant oil refinery and halting a fresh
attempt by Iranian troops to break a six-week-old Iraqi siege.
    Tehran broadcasts reported Abadan's defenders mounted overnight
counterattacks on Iraqi positions along the northeastern and eastern
approaches of the city, killing 30 ''enemy infidels.''
    Abadan is the last Iranian stronghold on the eastern bank of the
Shatt al-Arab waterway which formed the southern border of the two
nations before the war erupted 76 days ago. Iraq wants full
sovereignty over the entire estuary.
    
ap-ny-12-06 0626EST
**********

n547  0456  06 Dec 80
 
BC-ROWAN-12-06
    The following Rowan column is copyrighted and for use only by
newspapers that have arranged for its publication with Field
Newspaper Syndicate. Any other use is prohibited.
    CARL ROWAN
    RELEASE WEDNESDAY, DECEMBER 10, 1980
    Ronald Reagan's Nightly Prayers
    By Carl T. Rowan
     WASHINGTON -- I watch the piling up of bad to ominous news, atome
and abroad, and I just know what President-elect Ronald Reagan says
in his prayers every night:
     ''Dear Lord, if You can find a line of communication into the
godless Soviet Union, convince them not to invade Poland; but if they
must invade, let them do it while Jimmy Carter is still president.
Lord, don't push the cup of war-or-peace to my lips before I learn my
way to the White House Situation Room.
     ''And, Father in Heaven, deliver one small miracle to Deputy
Secretary of State Warren Christopher. Let his missions to Algeria
succeedsot.hose hostages in Iran can come home before my inaugural.
Spare me the cries from my enemies that are inevitable if this tragic
and angering situation should be the first test of my promise to end
the humiliation of Uncle Sam.
     ''I don't want to seem greedy, God, but if You find it within Your
mercy, let this lame-duck president resolve the question of what to
do about the high number of Japanese automobiles being sold in this
country. I don't want to prove those nasty charges that I would
quickly get America into a war -- not even a trade war.
     ''I need Your guidance, Lord. Some adivsers tell me that tight
money and high interest rates are essential to fight inflation, while
others warn me that dealers WON'T buy cars, consumers CAN'T buy cars
and that the housing and other industries face calamity as long as
the prime interest rate hovers around 20 percent.''
     The closer Inauguration Day comes, the closer Mr. Reagan and his
supporters and adivsers come to the harsh reality that the problems
before this nation are complex and dangerous, and that perhaps some
do not lend themselves to solutions within this century.
     ''Give Reagan some time -- at least six months!'' implores one of
his once-bold supporters.
     When asked what Mr. Reagan can do to restrain the Soviets in
Poland, another avid backer says, ''Nothing.''
     The giddy aura of campaign accusations and promises is fading fast
and the Reagan people are crash-landing into the real world where
this nation staggers from the shortest ''economic recovery'' in its
history into another brutal recession.
     Some of the people around Mr. Reagan are saying frankly that now
that they approach responsibility and see how wretchedly complex the
problems are, Jimmy Carter doesn't look nearly as dumb or inept as he
was said to be during the campaign.
     Jerry Ford didn't solve America's most pressing problems because he
couldn't, so voters decided to trade him in for Jimmy Carter.
     Carter didn't solve the problems of the economy, or those arising
from activities by the Soviet Union, because he couldn't. So
frustrated voters turned Carter out in the hope that Ronald Reagan
can work some miracles.
     When Reagan fails to solve the basic problems because he can't, and
perhaps even winds up making some worse, the cry for a change will
again rise from the electorate.
    We seem to be in for a series of one-term presidents, and a
perception of this is the only explanation I can surmise for South
Carolina Republican conservative Sen. Strom Thurmond and Michigan
Democratic liberal black activist Rep. John Conyers joining to
promote a constitutional change so we elect presidents to a single
six-year term.
    I don't support their proposal, but I concede that the pressures and
problems of our times may have imposed a one-term limit, no matter
what the Constitution says.
    ENDIT ROWAN
    
ny-1206 0756est
**********

a062  0512  06 Dec 80
PM-War Rdp, Insert, a044,30
BEIRUT, Lebanon Insert after 4th graf: Inserts graf 5, Iran claims
imminent victory
    ''God willing we are within sight of the final victory of the forces
of Islam,'' Iran's official Pars news agency quoted Iran's Supreme
Defense Council spokesman Sayyed Ali Khamenei as saying today.
    But despite: 5th graf
    
ap-ny-12-06 0812EST
**********

a086  0836  06 Dec 80
PM-US-Hostages, 1st Ld, a027, 130
Eds: Adds grafs 2-4 with Iranian government spokesman saying
assessment of U.S. response won't take long
Latest Move Up To Iran
    WASHINGTON (AP) - U.S. officials are waiting again for the latest
reply from Iran in the complicated, long-distance negotiations aimed
at freeing the 52 U.S. hostages held by Iran.
    An Iranian government spokesman said today ''it won't take long'' to
complete assessment of the latest U.S. message concerning the four
demands laid down by the Iranian Parliament.
    Ahmad Azizi, aide to Prime Minister Mohammad Ali Rajai, confirmed in
a telephone interview with a Western reporter in Tehran that the
government was still studying the clarification from Washington sought
by Iran and delivered Thursday by Algerian diplomats.
    Asked to comment on the timing of a decision on the U.S. reply,
Azizi said it was unlikely there would be an announcement Sunday. He
gave no indication of Iran's position.
    The latest: 2nd graf
    
ap-ny-12-06 1137EST
**********

n038  1137  06 Dec 80
 
BC-TURK-12-06
    By Jay Bushinsky
    (c) 1980 Chicago Sun-Times (Field News Service)
    JERUSALEM - Turkey's decision to lower its diplomatic relations with
Israel to a ''symbolic'' level is a new setback to the Jewish state's
policy of leapfrogging hostile Arab neighbors to reach the Middle
East's non-Arab periphery.
    The first onetime friend to turn a cold diplomatic shoulder on
Jerusalem was Ethiopia, and the second was Iran - in 1973 and 1974,
respectively.
    Now Turkey has backed away from Israel, not formally breaking off
relations, as did Ethiopia and Iran, but by recalling its diplomatic
corps from Tel Aviv and leaving only a second secretary, ostensibly
to handle consular business and little else.
    The official reason given in Ankara was Turkish displeasure over
Israeli legislation declaring that Jerusalem, including sectors
conquered in the 1967 Six-Day War, is inadvisible and shall be this
country's ''eternal capital.''
    Last August, immediately after the so-called Jerusalem Law was
passed, Turkey summoned its charge d'affaires home in protest. There
was speculation in the interim that total cut in diplomatic links was
in the offing.
    But the advent of a pro-Western military government on the heels of
a coup d'etat in Turkey evidently produced a compromise designed to
confirm Ankara's dissatisfaction with the controversial law, mollify
hard-line Arab demands for an end to Turkish-Israeli relations and
yet not deviate from fellow-NATO states' traditional association with
Israel.
     Turkey is the only predominantly Moslem country other than Egypt
maintaining normal relations with Israel.
     However, its dependence on Arab oil, principally from Libya and
Iraq, has opened the way for political pressure to break with
Jerusalem.
     As a secular republic, though, and with its history of conflict
with the Arabs, Turkey took pride in its ability to treat openly with
israel. In fact, Turkish Airlines has operated regular flights
between Istanbul and Tel Aviv without parallel schedules to most Arab
capitals.
    Turkey also has a special place in the Middle Eastern context,
having ruled almost the entire region for the seven centuries
preceding the allied (British and French) victory in World War I.
    The Turks, under Suleiman the magnificent, in the heyday of the
Ottoman empire, built the massive stone walls of Jerusalem and other
architectural legacies of Turkish rule still abound throughout the
holy land.
     It was odd, though, that one of their initial expressions of
protest against the Jerusalem law was to close the Turkish consulate
in Jerusalem. This facility had operated in the city's former
Jordanian sector, and like French, Spanish and American counterparts,
carried on after the 1967 war as if the Israeli annexation decreed in
July of that year was irrelevant.
     Besides its secularist ideology, Turkey's interest in being on good
terms with Israel also related to the quest for foreign support in
the Cyprus dispute.
    The Israelis have maintained strict neutrality, abstaining from the
annual general assembly votes on the issue. Although they continue to
man an embassy in Nicosia, where the Greek Cypriots are in control,
the Cyprus government's involvement in Third World politics and its
extensive trade with Arab countries put a crimp in Greek
Cypriot-Israeli relations.
    With Turkey also shunning Israel, the diplomatic leverage Jerusalem
will be able to bring to bear on Nicosia will be that much less.
    Despite these developments, though, it is not possible to declare
Israel's ''periphery theory'' of regional security totally dead.
    National interest tends to draw Ethiopia and Israel together due to
the ongoing conflict with pro-Arab Somalia and the Arab-backed
Eritrean liberation movements.
    This also could apply to Iran and Israel. Witness the disclosures
leaked to Washington-based columnists Rowland Evans and Robert Novak
about Israeli arms purportedly being sent to Tehran via Holland.
    And Turkey undoubtedly will continue to seek Israeli good will in
view of its unsettled territorial dispute with Syria over the
Alexandretta area and because of its interest in preserving a
European rather than a Levantine image. Not only would the United
States frown on an irrevocable rupture of Turkish-Israeli relations,
but also the Western European nations with which Ankara is linked
through NATO.
    And there also is the ongoing economic trade of Turkish raw
materials and specialized foodstuffs in return for Israeli industrial
products - not to mention the possibility of sharing military
intelligence despite the recall of the respective military attaches.
    ENDIT BUSHINSKY
    
ny-1206 1437est
**********

a239  1435  06 Dec 80
AM-Hostages,220
By The Associated Press
    An Iranian government spokesman said Saturday ''it won't take long''
to complete assessment of the latest U.S. response on Iran's terms
for releasing the 52 American hostages.
    Sunday is the hostages' 400th day in captivity.
    Ahmad Azizi, an aide to Iranian Prime Minister Mohammad Ali Rajai,
said in a telephone interview with a Western reporter in Tehran that
the government was still studying the latest message from Washington.
    The U.S. clarification, requested by Iran, was delivered Thursday in
Tehran by Algerian intermediaries. They recieved it two days earlier
in Algiers from Deputy Secretary of State Warren Christopher on his
second mission to the Algerian capital in three weeks.
    Asked to comment on the timing of Iran's decision on the U.S. reply,
Azizi said it was unlikely there would be an announcement Sunday, but
added, ''It won't take long.'' He gave no indication of Iran's
position.
    Azizi also said Iran's Parliament, the Majlis, would be asked for
guidance if the U.S. response was neither positive nor negative.
    He did not elaborate. Earlier last week, Executive Affairs Minister
Behzad Nabavi, head of the government commission studying the hostage
issue, said the Iranian parliament, the Majlis, would be consulted if
the United States accepted some of the Iranian conditions and
rejected others.
    
ap-ny-12-06 1736EST
**********

n058  1443  06 Dec 80
 
BC-BROWN 2takes
(EXCLUSIVE: 6:30 p.m. EST Embargo)
Brown Sees Need for Allies to Show More Concern for Their Security
By RICHARD HALLORAN
c. 1980 N.Y. Times News Service
    WASHINGTON - On the eve of his departure for a final trip to Europe
and Japan, Secretary of Defense Harold Brown had some sharp words for
the United States' allies: ''They need to behave as if their military
security is as important to them as it is to us.''
    Brown, who is scheduled to leave Monday for Brussels and Tokyo to
meet with other defense ministers, asserted, ''No American
government, and still less the American people or the American
Congress, are going to accept a situation in which some other country
feels that it's our job to defend them and they needn't bother to
defend themselves.''
    In an interview looking back over his tenure in the Cabinet post,
Brown was considerably more pointed on that theme than he has been
before, at least in public. He also urged caution in developing
military relations with China, but he called for a more explicit
military arrangement with Saudi Arabia.
    At home, he had some pungent advice for his successors running the
Defense Department, asserted that senior military officers who
fundamentally disagreed with their civilian superiors should resign,
and ruminated on his satisfactions and disappointments.
    After four years of leading the huge and complicated military
establishment, however, Brown declined to discuss his future, except
to say, ''It has to be something very different, otherwise I'll just
go crazy comparing it with this.''
    For a good part of his four years in office, Brown has been trying
to persuade Western European nations and Japan to do more,
politically and economically as well as militarily, to provide for
the common defense of the alliance. He has had varying success.
    ''Sometimes, some of the allies imply 'Yes, there should be a
division of task - we'll sell stuff to the Russians and you defend
us,' '' Brown said. ''That's not what I mean by a division of task.''
    ''There's no way, in fact, that their security can be more important
to us than to them,'' he said. ''And we will judge by their actions
how important they think their security is.'' While noting that some
people felt that pressing allies often caused friction, he said, ''I
think we have to keep pushing.''
    He cited the Persian Gulf as a case in point, where the United
States must provide the greater part of military forces to help
protect oil resources for most of the industrialized world. ''That's
not to say that other countries can't contribute some,'' he said.
''France can, Britain can, and perhaps others ought to make at least
a symbolic contribution.''
    In his tenure at the Defense Department, Brown has led the United
States into the start of the first military relationship with China
since the Communists came to power in 1949. A highlight of those
efforts came when he visited China early this year.
    But he advised that military relations with Peking ''should develop
very cautiously because the Chinese are not like the industrial
democracies.''
    ''They're different,'' he said. ''Their goals are in general not
going to be the same.''
    On the other hand, Brown said, ''We do share one very important
thing: We're both concerned about Soviet expansionism.'' He said that
that was ''a good reason to have relations between the defense
establishments.''
    He said that the Chinese were somewhat more eager than the United
States to strengthen military relations between the two countries.
''The Chinese often say that inevitably the Soviets are going to war
with the United States and we've got to get together,'' he said.
    ''Well, we don't see it that way and we don't want to behave that
way,'' Brown said.
    He disclosed that the Chinese wanted to buy weapons from the United
States, which the Carter administration has so far ruled out. But he
said that the Chinese had been ''understanding of the restrictions
that we've placed on ourselves.''
    Brown recalled that in 1979 he brought ''the issue of a more
explicit security connection'' with Saudi Arabia on a trip to that
country. Many military officers believe that Saudi Arabia, because of
its oil resources and its location, is the key to American national
interests around the Persian Gulf.
    ''The Soviet invasion of Afghanistan and the Iran-Iraq war have
each, in turn, focused Saudi concerns on their own need for military
strength and for a U.S. security commitment,'' Brown said.
    But he said that a formal Saudi alliance with the United States,
even more than permitting American forces to be based on their soil,
would damage their security because it would exacerbate tensions both
inside and outside that country.
    Brown, who sat in his office with his feet propped on a coffee
table, had three pieces of pointed advice for his successors.
    ''First,'' he said, ''pick your own people. That doesn't mean you
should have a lot of cronies. Of the top team that I picked, only a
few did I know well before. They were suggested often by other people
but they were my choices. It's the first thing you do. If you do that
wrong, you've got troubles from then on.''
    ''Second,'' he continued, ''take a fresh look at the program
issues,'' meaning primarily programs in the military budget.
    (MORE)
    
ny-1206 1744est
**********

n059  1450  06 Dec 80
 
BC-BROWN 1stadd
(EXCLUSIVE: 6:30 p.m. EST Embargo)
NYT WASHINGTON: military budget.
    ''Before you solve all the policy issues, you have to come up with a
budget,'' he said. ''Logically, you ought to do it the other way
around, starting with what's necessary for U.S. security, the
international factors, your strategy, what forces that takes, what
budget that takes. But you don't have time to work out the world from
its primordial atoms. You have to come up with the budget, as we did
a month after we came to office.''
    He advised the incoming Republicans: ''Set aside the positions taken
during the campaign by both sides. Look at the programs we're going
to leave. Look at the alternatives that others may be creating. Take
a cold look, then decide what to do and then do it.''
    Brown said his third piece of advice was ''somewhat tendentious.''
Having said to ''take a cold new look,'' Brown said, he urged the new
administration to build as much as they could on ''the sound, steady,
realistically sustainable course of action'' that he said began in
the last year of the Ford administration and continued for the four
years of the Carter administration.
    Philosophically, he said the lesson he had drawn from his
experiences in the Defense Department was that ''security is more
than only military power, but without sufficient military power, the
other components of security - economic, diplomatic, technological,
agricultural and all the rest - aren't enough.''
    ''There's no combination of economic strength and technological
strength that will assure security if your military capability is
grossly inadequate,'' he said.
    While asserting that he had agreed much more often with former
Secretary of State Cyrus R. Vance than he had disagreed with him,
Brown said, ''Secretary Vance was persuaded that anything that
involved the risk of force was a mistake.''
    Brown said: ''I don't hold so universal a view. I think that things
that involve force should always be a last resort, but they should
not be a resort never taken.''
    Vance resigned last spring because he did not agree with the
unsuccessful mission to rescue the American hostages in Iran.
    Brown said that differences between him and his senior officers in
the military services in the campaign over the issue of military
readiness were more an impression than a reality and that perhaps
they were inevitable in an election year.
    Nonetheless he said, ''There is one point that I think needs to be
sharpened up.'' He said that senior military officers must support
the decisions of their civilian superiors, except when congressional
committees ask them for their personal opinions.
    Going beyond that, Brown was firm in his conviction that if military
officers could not support a decision, they should resign. ''I would
say that if they considered it a totally irrational and unjustifiable
decision, they really can't stay in and support it,'' he said.
    Asked what his greatest satisfaction had been as secretary of
defense, Brown, who has spent his waking hours for four years
preparing for war, replied, ''I guess I'm proudest of the fact that
we have remained at peace these four years.''
    
ny-1206 1751est
**********

a250  1548  06 Dec 80
AM-War Rdp,570
Khomeini Appeals for Unity
By KATE DORIAN
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran's Ayatollah Ruhollah Khomeini appealed
for national unity Saturday, saying the superpowers had hatched
''devilish'' plots to divide Iran as it battled Iraq.
    Iraq claimed its forces downed five U.S.-made Iranian warplanes in
Kurdish-populated northeast Iraq. A communique broadcast by Baghdad
radio said four F-5s and one Phantom F-4 were shot down in dogfights
with Iraq's MiG-21 fighters and by anti-aircraft fire over
Suleimaniyeh and Darbandikan.
    Both cities were the targets of six Iranian air attacks Friday and
Saturday. Iran's tactics appeared aimed at cutting supply routes from
Iraq's Kurdish provinces to northwest Iran which also has a large
Kurdish population.
    In an address broadcast by Tehran Radio, Khomeini blamed the United
States and the Soviet Union for causing Iran's internal divisions,
which surfaced at the start of the Iran-Iraq war 76 days ago.
    ''The superpowers, who lost hope in the war or a military attack,
are now beginning their devilish activities, trying to separate you
from each other and cause dissent among you,'' Khomeini said. ''Our
people must wake up and understand those who want to create dissent
. . . want to invade your country and take away everything.''
    It was the third time in less than a month that Khomeini sounded the
alarm about disunity. Khomeini, a Moslem fundamentalist, said, ''If
the people are separated from the clergy and the clergy from the
people, the superpowers will have a feast.''
    Khomeini's representative on Iran's Supreme Defense Council, Sayyed
Ali Khamenei, declared in Tehran that final victory against Iraq was
''within sight,'' the official Pars news agency said.
    Both Iran and Iraq claimed gains along the 300-mile battlefront in
Iran's oil-rich Khuzistan province. Western reporters have not been
allowed to approach the war zone for weeks.
    Iran and Iraq claimed to have mounted fresh helicopter gunship raids
against each other's positions in Khuzistan, while fires from air and
artillery bombardment gutted oil installations of both countries on
the Persian Gulf's northern flank.
    An Iraqi communique said its helicopter gunships raided Iranian
positions in the refining city of Abadan, the provincial capital of
Ahwaz about 85 miles to the north, and the highway town of Susangerd
30 miles east of Ahwaz. It said Abadan was ablaze with Iranian forces
unable to break a six-week Iraqi siege of the city.
    Iranian broadcasts reported Iranian counterattackers mounted
overnight attacks on Iraqi positions along the northeastern and
eastern approaches to Abadan, killing 30 ''enemy infidels.''
    Iranian long-range artillery positions near Abadan again blasted
Iraq's main gulf oil terminal of Fao at the southernmost tip of the
disputed Shatt al-Arab estuary, a communique reported by Pars said.
Iran said the terminal was burning for the third consecutive day.
    
ap-ny-12-06 1849EST
**********

a261  1654  06 Dec 80
AM-Syria-Jordan,260
Syrian Leader Says War With Jordan Unecessary
    KUWAIT (AP) - Syrian President Hafez Assad said Saturday Syria's
disputes with Jordan could be resolved ''without fighting.''
    In an interview with the Kuwaiti daily newspaper al-Rai al-Am, Assad
also claimed credit for containing the Iranian-Iraqi war by
persuading Iran not to attack Persian Gulf states sympathetic to Iraq.
    Assad said he sent 50,000 soldiers and as many as 1,200 tanks to
Syria's border to force Jordanian King Hussein to stop supporting
Moslem Brotherhood guerrillas in Syria and to keep Jordan from joining
the U.S.-sponsored Egyptian-Israeli peace negotiations. The
fundamentalist Moslem Brotherhood is opposed to Assad's Baath Party.
    On Friday, Western diplomats in Syria said Assad withdrewn about 15
tanks from the frontier, lowering the tension.
    ''Had Jordan been a non-Arab country, we would have certainly
approached it differently long ago without having any second thoughts
about entering its territory,'' Assad was quoted as saying. ''We
believe we can limit Jordan's involvement without fighting between the
Jordanian and Syrian armies.''
    But Assad said his basic differences with Hussein remain.
    ''Jordan continues to conspire against Syria and encourage sabotage
and assassinations and do its best to create dissentions in the Arab
ranks,'' he said in the interview, conducted Thursday.
    Jordan has denied the claim.
    Syria began its border buildup Nov. 20 during the Arab foreign
ministers meeting in Jordan. It engineered a boycott of the summit by
six Arab League members.
    
ap-ny-12-06 1952EST
**********

a277  1913  06 Dec 80
AM-Saudi-OPEC,160
Saudis Say Long-Term Oil Pricing Delayed
    JIDDA, Saudi Arabia (AP) - Saudi Arabia believes the Dec. 15
conference of the Organization of Petroleum Exporting Countries should
be held even though there is little hope for agreement on unified
prices for 1981, a Saudi magazine reported Saturday. The meeting is
scheduled to be held in Bali, Indonesia.
    Oil Minister Sheik Ahmed Zaki Yamani was quoted in the
English-language Saudi Business magazine as saying, ''We must insist
on holding the OPEC meeting . . . But I see little chance for
agreement on unified 1981 prices.''
    On Friday, Indonesian Deputy Chairman Santoso Donoseputro suggested
the two-day conference be put off until Arab oil-exporting nations
regained political stability. He cited the war between Iran and Iraq
and the resulting decrease in oil production as a major cause of
division in the Arab ranks.
    Yamani said the war, moving into its 12th week, had delayed
implementation of a long-term pricing strategy, but had not ruined
OPEC.
    
ap-ny-12-06 2214EST
**********

a002  0022  07 Dec 80
BC-Iran Chronology, 39th add,160
UNDATED: negative response.''
    Day 386, Nov. 23 - Iran asks the United States for further
clarification of its response on the hostages.
    Day 387, Nov. 24 - Muskie says he sees no short-term solution to the
hostage question.
    Day 388, Nov. 25 - Parliament speaker Rafsanjani says Iran is
discussing with the Algerians ways the United States may meet Tehran's
terms for releasing the hostages.
    Day 389. Nov. 26 - Algerian intermediaries confer with the State
Department in Washington on Iran's latest message.
    Day 390, Nov. 27 - The hostages spend their second Thanksgiving in
captivity. Iranian sources say preparations have been stepped up for
the transfer of the Americans to the Iranian government.
    Day 391, Nov. 28 - Reports that the hostages have been transferred
to Iranian government custody are denied in Tehran.
    Day 392, Nov. 29 - President Carter meets with his top officials at
Camp David, Md., to discuss clarification of the U.S. response to
Iran's release demands.
    
ap-ny-12-07 0323EST
**********

a003  0024  07 Dec 80
BC-Iran Week By Week, 17th add,70
UNDATED: negative response.''
    Week 56, Nov. 23-29 - The hostages spend their second Thanksgiving
in custody in Iran. In diplomatic developments, Iran asks the United
States for further clarification of its response on the hostages and
Algerian intermediaries later confer with U.S. State Department
officials on the Iranian request. At week's end President Carter meets
with his top officials at Camp David, Md., to discuss the
clarification requested by Tehran.
    
ap-ny-12-07 0325EST
**********

a007  0129  07 Dec 80
BC-Khalkhali,120
    BEIRUT, Lebanon (AP) - Iran's Islamic revolutionary Judge Sadegh
Khalkhali resigned his post Sunday as director of the nation's special
anti-narcotics courts.
    The man who sent hundreds of monarchy supporters to their deaths on
the gallows or before firing squads announced his resignation at a
morning session of Iran's Parliament, the Majlis.
    Iran's official Pars news agency quoted Khalkhali as demanding a
judicial investigation into the performance of his anti-narcotics
organization, and asked members of his anti-narcotics militia to carry
on their duties until the end of this month.
    The agency did not say why Khalkhali resigned. Last month he
threatened to quit if accusations of maltreating suspects in narcotics
prisons were not stopped.
    President Abolhassan Bani-Sadr was among Iranian leaders who
criticized Khalkhali's methods.
    
ap-ny-12-07 0430EST
**********

a009  0226  07 Dec 80
BC-Iran Chronology, 40th Add,170
UNDATED: release demands.
    Day 393, Nov. 30 - Prime Minister Rajai says hostages are in
excellent health and good shape.
    Day 394, Dec. 1 - Iranian official says hostages have not yet been
transferred to the custody of the Iranian government.
    Day 395, Dec. 2 - Deputy Secretary of State Warren Christopher gives
Algerian intermediaries new U.S. reply to Iran's release demands.
    Day 396, Dec. 3 - Christopher ends two days of talks with Algerian
officials and says process of freeing hostages is continuing to move
forward.
    Day 397, Dec. 4 - Iran says whether hostages are freed, tried or
referred to Majlis depends on latest U.S. response to release demands.
Iran receives latest U.S. response but does not comment.
    Day 398, Dec. 5 - Carter administration tells Iran that further
delay in reaching an agreement on releasing captives could jeopardize
chances for settlement in early 1981.
    Day 399, Dec. 6 - Iranian government spokesman says ''it won't take
long'' to complete assessment of latest U.S. response to release
terms.
    
ap-ny-12-07 0527EST
**********

a010  0229  07 Dec 80
BC-Iran Week by Week, 18th Add,100
UNDATED: by Tehran.
    Week 57, Nov. 30-Dec. 6 - Iran says the fate of the hostages -
freedom, trial, or a Majlis decision - depends on the latest U.S.
response to its release demands. The United States presents the new
reply to Algerian intermediaries and says the process is continuing to
move forward. The Carter administration tells Iran that further delay
could jeopardize chances for settlement in early 1981. At the end of
the week, an Iranian government spokesman says ''it won't take long''
to complete the assessment of the latest U.S. response.
    
ap-ny-12-07 0530EST
**********

n999  0709  07 Dec 80
. . .
ixx nypt
a006
r i czcczcvyx
BC-AWACS(COX)
AMERICAN COMBAT SUPPORT IN ARABIA
By JOSEPH ALBRIGHT
c.1980 Cox News Service
    RIYADH, Saudi Arabia - From the front driveway of the Saudi
petroleum ministry you can read ''U.S. Air Force'' on the side of the
ungainly gray radar plane as it whines toward a landing after another
flight over the Saudi oil fields.
    And at a marbled-floored Marriott Hotel in the middle of a barren
dirt patch outside Riyadh, you can see husky young Americans, some
with aviator sun glasses, lolling by a swimming pool between
their12-hour duty shifts.
    On the window of a bus outside the hotel is a sticker marked
''Second Combat Communications Group, Second to None.''
    As it turns out, these Americans are doing more ''combat support''
here than has been generally realized. Official spokesmen in
Washington have described the AWACS program in Saudi Arabia as a
means to scan the horizon for hostile planes and beam the information
down to the Saudi Air Force.
    But highly reliable sources here said last week there are also
circumstances in which American officers aboard an AWACS plane are
authorized to ''vector'' Saudi pilots toward the path of an
unidentified plane approaching the Saudi oil fields.
    The AWACS program here - code named Elf-1 by the U.S. Air Force -
began70 days ago because of Saudi fears that the Iraq-Iran war might
expand into an air assault on Saudi Arabia.
    Since then, the AWACS planes have delivered such impressive radar
intelligence that the Saudi defense ministry reportedly wants to keep
them operating indefinitely.
    ''We hope to buy them,'' said one Saudi who holds an important
security portfolio. ''They are extremely valuable because they
extended our reaction time.''
    It will be up to the Reagan administration and the new American
Congress to approve the sale of AWACS planes if the Saudis formally
request them.
    An AWACS is a Boeing707 with a normal crew of17, of which13 are
communications and radar specialists who sit at consoles in the rear
of its windowless fuselage. AWACS stands for Airborne Warning and
Control System.
    From interviews with sources of several nationalities, including
three persons who have flown aboard an AWACS mission here, a picture
emerged of America's hands-on role in helping defend the Saudi oil
fields.
    The AWACS planes cover the oil fields 24 hours a day, operating in
shifts with th help of aerial refueling tankers.
    AWACS planes take off from Riyadh Air Base, on the edge of this
capital's commercial airport, and fly east about 400 miles to take up
their normal patrol orbit.
    This orbit provides continuous radar coverage for all possible
approaches to the sprawling storage depot and oil loading terminal at
Ras Tanura on the Arabian Gulf.
    From that orbit, an AWACS can also oversee the northern approaches
to most of the rest of Saudi Arabia's complex of pipelines, gas-oil
separators and pumping stations which transmit one-third of the
world's exported oil.
    From the AWACS, radar controllers can ''see'' any object moving at
more than 80 miles an hour within a 250-mile radius. ''If there is a
Mercedes moving along the highway, the AWACS can see it,''said one
source.
    Radar information from AWACS is radioed via a so-called ''digital
downlink'' to a message processing center at Riyadh Air Base. This
center - a large room covered with a low-presssure bubble - was flown
from the United States and is staffed by American and Saudi analysts.
    From there, the more significant radar information is transmitted
over telephone lines to the Royal Saudi Air Force's sector operations
center in the oil-producing region. That center at Dhahran,
supervised by Saudi Air Force operation chief Col. Fahd bin Abdullah
and staffed by Saudis, decides whether information from an AWACS
message justifies ''scrambling'' Saudi interceptors.
    If the senior American aboard an AWACS concludes a certain radar
''track'' appears especially like an invading fighter, he is
authorized to short circuit the processs by radioing the Saudi
command center directly.
    Once the Saudi planes have ''scrambled,'' responsibility for aiming
them in the right direction passes automatically to one of six
American ''weapons controllers'' aboard the AWACS, the sources
explained.
    All are Air Force officers, with a lieutenant colonel serving as a
senior controller on each tour.
    ''Vector left, 270 degrees, you have a bogey at 20 miles'' is a
sample instruction, it was explained.
    As the Saudi fighter begins closing in, the standing orders provide
that the AWACS crew must turn back authority over the fighter to a
Saudi controller on the ground, who radios any final course
corrections.
    ''The Americans are not in a position to tell the Saudis when or
whether to fire,'' said a source. ''All the AWACS does is give them
the eyes to do it
    The AWACS and Saudi fighter crews have carried out several joint
exercises in ''scrambling'' and intercepting opposing planes.
    The sources refused to say how many times Saudi planes have
''scrambled'' for real, but there was reason to believe it has
happened at least once.
    The American crew members - reportedly numbering about500 and
including at least two women in ground support roles - are assigned
to 45-day temporary assignments in Saudi Arabia.
    While here they work seven days a week,12 hours a day.
    ''I have never been so proud of a group of servicemen in my life,''
said Air Force Maj. Gen. Charles Donnelly of Wichita Falls, Tex., the
senior American at the U.S. military training mission in Saudi Arabia.
    At least100 crew members stay at the Marriott Hotel outside Riyadh,
which features tennis courts, bowling alleys and a swimming pool. But
it is10 miles across a dirt desert from the nearest restaurant or
store. Some crew members may be moved to the newer, more luxurious
Marriott in downtown Riyadh, according to local scuttlebutt.
    The Saudis are paying for their hotel rooms, meals and laundry as
well as fuel for the AWACS flights.
    Only one untoward incident has occurred. Soon after the first crews
arrived, someone arranged to take a busload of off-duty crew members
to the Bedouin marketplace in downtown Riyadh. When the airmen began
snapping pictures with their cameras, they were temporarily detained
by suspicious Saudi security men.
    Picture-taking is a no-no in Saudi Arabia, even for those whose
radar images are in demand at the Saudi defense ministry.
Distributed by The N.Y. Times News Service
    
nyt-12-07-80 1009est
**********

a214  1000  07 Dec 80
AM-Arab Summit,460
    BEIRUT, Lebanon (AP) - A Palestine Liberation Organization official
was quoted Sunday as saying Islamic countries will convene a summit
in Saudi Arabia Jan. 24 and that Arab countries might use the occasion
to try to settle a split that has emerged over the Persian Gulf war.
    The English-language magazine Monday Morning quoted Khaled al-Hassan
as saying that Arab heads of state attending the summit in Mecca
might conduct a separate conference at the same time. Hassan is chief
political adviser to PLO head Yasser Arafat.
    Disputes between Arab countries flared into a leftist boycott of an
Arab summit in Amman Nov. 25-27. Syria, Libya, Algeria, South Yemen
and the PLO stayed away from the conference as members of a hardline
anti-Israel ''steadfastness and confrontation front.'' Lebanon, beset
by domestic feuds in the aftermath of its civil war, also did not
attend the Amman meeting.
    Leftist boycotters sympathize with Iran in the Persian Gulf war,
against Iraq. The 15 other mostly conservative Arab nations tend to
back Iraq and attended the Amman summit. Most of Iran's population is
Perisan, not Arab.
    Syria, charging that Jordan was aiding Islamic fundamentalists
carrying out a terror campaign against the Syrian government, massed
troops on Jordan's border and there was a danger that the two Arab
neighbors would go to war.
    The situation eased after a Saudi mediation effort. On Sunday,
Syrian official sources said troops were pulling back from both sides
of the border.
    Jordan contended that the real reason for the Syrian buildup was
anger at Jordan's support for Iraq in the war with Iran.
    Hassan suggested Arab participants at the Islamic summit would be
ready to settle their feuds next month when they meet at Islam's
holiest city. ''Arabs disagree as soon as they reach agreement, and
they reach agreement as soon as they differ,'' Hassan was quoted as
saying.
    Hassan also was quoted as saying that he did not believe a U.S.-PLO
dialogue would come about during the term of President-elect Ronald
Reagan.
    ''President-elect Reagan has tied his own hands by commiting himself
to a policy of hostility to the PLO, which he has described as a
terrorist organization,'' said Hassan, adding:
    ''Some say what Reagan has said was part of electioneering campaign
and that we must wait and see. But I believe we have waited and seen
in the case of past presidents, and they were no better after taking
office than they were during the election campaign.''
    Hassan said U.S. support of Israel could be reduced only by a
collective Arab policy that would make it a ''losing proposition for
the United States.''
    But he noted the Arab rifts rendered the Arab countries incapable of
reaching agreement on such a collective policy.
    
ap-ny-12-07 1301EST
**********

a231  1223  07 Dec 80
AM-Syria-Jordan, Bjt,660
Report Troops Pull Back From Syria-Jordan Border
By LOUIS FARES
Associated Press Writer
    DAMASCUS, Syria (AP) - Tanks and troops rolled back on both sides of
the Syrian-Jordan border Sunday after a two-week military
confrontation pushed the two Arab countries to the brink of war,
official Syrian sources reported.
    The sources, who declined to be identified, said the full-scale
pullback began Saturday after a mediation effort by Saudi Arabia and
that about 25 percent of the forces on both sides had been withdrawn.
    There was no immediate word from from officials in Amman on
Jordanian pullbacks. ''We are still taking this seriously,'' said one
Jordanian source of the border crisis that threatened a second
conflict in an area already tense over the Persian Gulf war between
Iran and Iraq.
    Syria began the buildup Nov. 2, deploying a total of 50,000 soldiers
and 1,200 tanks on the southern border. Jordan responded by sending
and estimated 600 tanks and 30,000 troops to within six miles of the
Syrian forces.
    The withdrawals reportedly resulted from mediation by Prince
Abdullah bin Abdel-Aziz of Saudi Arabia, who shuttled between the
Damascus and Amman for four days until both sides agreed to defuse the
crisis.
    Arab League Secretary General Chadli Kleibi arrived in Damascus on
Saturday for talks with President Hafez Assad and was expected to
travel to Amman for talks with King Hussein. Kleibi was attempting to
solve the issues that brought on the war of nerves, Damascus sources
said.
    In Beirut, an adviser to Palestine Liberation Organization head
Yasser Arafat was quoted as saying in an interview that Arab countries
will attend a summit of Islamic nations in Saudi Arabia Jan. 24. The
session in Mecca might be used to patch up Arab disputes,
Khaledal-Hassan was quoted as telling the Lebanese magazine Monday
Morning.
    The Syrian-Jordan dispute flared during an Arab foreign ministers
gathering in advance of an Arab summit in Jordan Nov. 25-27. Syria led
a boycott by pro-Moscow Arab states and the PLO after Damascus
demands for a postponement of the summit were ignored.
    Those who stayed away from the Amman summit also have tended to
support Iran in the Persian Gulf war. Iran, a non-Arab state, is
mostly Persian. Jordan has openly backed Iraq and many of the other
conservative Arab nations have tended to sympathize with Iraq in the
conflict.
    Syria's president accused Jordan of seeking a Camp David-style deal
with the new U.S. administration of President-elect Ronald Reagan
that might undercut what Syria believes should be a united Arab
position on the Palestinian issue.
    Assad also asserted that Jordan was aiding the Moslem Brotherhood, a
secret society of Islamic fundamentalists blamed for a wave of
bombing and assassinations in Syria during the last 18 months.
    At the height of the border crisis, Syria demanded written
assurances from Hussein that Jordan was not aiding the brotherhood and
that the PLO is the only spokesman for Palestinians.
    Jordan denied charges of aiding the brotherhood and that Jordan was
changing its position on the PLO. But Jordan refused to bow to the
Syrian demand for written assurances.
    Jordanian officials said they believe the Soviet Union was behind
the border crisis and said it was part of a strategy aimed at gaining
larger roles in the Middle East for Moscow and the pro-Soviet Arab
camp led by Syria.
    ''It's for sure the Soviets are behind these events on the border,''
said one Jordanian official. ''They are trying to create struggle
areas in the Middle East to confront the new administration of Reagan.
They stir things up to give themselves more chance to get in.''
    Syria signed a 20-year friendship pact with Moscow on Oct.8. Jordan
remains an ally of the United States, its major arms supplier.
    Officials in Jordan suggested part of Syria's motivation in bringing
about the crisis was to divert attention from internal unrest and
also to occupy the military forces of Jordan, Iraq's main supporter in
the Persian Gulf war.
    
ap-ny-12-07 1524EST
**********

a235  1251  07 Dec 80
AM-War Rdp,700
By FAROUK NASSER
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq's president said Sunday that his forces
were entrenched in southwestern Iran and Iran's defense minister
declared a counter-offensive was planned. Both sides reported fresh
raids on enemy oil installations and air and artillery attacks
elsewhere.
    The reports, broadcast by Tehran and Baghdad radios as the Persian
Gulf war entered its 12th week, said Iranian and Iraqi jet
fighter-bombers and helicopter gunships made fresh destructive attacks
on both sides of the embattled Shatt al-Arab waterway.
    The state radios reported new air attacks and artillery barrages on
Iran's major oil refining city of Abadan and Iraq's oil terminal of
Fao. The targets, 35 miles apart on either side of the Shatt, have
been reported burning for the last four days.
    A communique from the Iraqi command broadcast by Baghdad radio said
raiding Iraqi helicopters and jet fighters touched off huge fires at
the giant refinery in Abadan as Iraqi gunboats sank an Iranian naval
vessel off the Fao waters. In all 35 Iranians were killed, it said.
    The radio said Iranian helicopter gunships raided a car convoy on a
road leading to Fao, killing nine civilians and wounding four others.
    Tehran radio said Abadan's long-range artillery responded with a
barrage on the Iraqi port of Fao followed by helicopter gunship raids
that kept the terminal installations ablaze. Abadan provided 60
percent of Iran's pre-war fuel needs.
    Western reporters are banned from battle zones and there was no
independent confirmation of the claims from either sides.
    According to the official Iraqi news agency, President Saddam
Hussein told a Cabinet meeting at his military command post in Baghdad
that Iraqi forces were in ''strong defense positions'' in the Iranian
southwest.
    ''Iraq's position is good. Our forces are now entrenched in strong,
solid defense positions. But we shall avert arrogance and will not
underestimate the opponent,'' it quoted him as saying.
    According to the news agency Hussein said he was ''confident of the
people, the army and the nation's will to win back its territorial
and offshore rights.''
    Hussein's report to his Cabinet appeared to confirm the views of
analysts here that Iraq plans to remain in territory already seized in
Iran's oil-rich Khuzistan province rather than push deeper into Iran,
where the enemy forces might face intensified counterattacks.
    Iraq claims to have conquered 8,000 square miles of Iranian
territory and has said it will pull out only when Iran recognizes
Iraqi sovereignty over the 120-mile-long Shatt al-Arab waterway,
Iraqi's only link to the Persian Gulf. Days before the war erupted
Sept. 22, Iraq abrogated a 1975 treaty which put the Iranian-Iraqi
border midstream in the Shatt.
    In an interview with Iran's official Pars news agency, Iranian
Defense Minister Col. Jawad Fakuri rejected as a ''political trick''
Iraq's offer to withdraw in exchange for Iranian recognition of Iraqi
control of the waterway.
    ''There will be no peace or negotiations with Iraq unless its
invading forces withdraw from Iran altogether,'' Fakuri said. Similar
remarks have been made by other Iranian officials.
    ''We have absorbed the shock of the Iraqi invasion,'' Fakuri
continued. ''The Iraqi advance has been stopped. Now a
counter-offensive is in the offing.''
    Fakuri claimed Iranian troops had destroyed between 210 and 250
Iraqi warplanes since the war began. Iraqi military communiques
claimed more than 300 Iranian warplanes shot down in the same period.
    Both claims appear exaggerated. According to the autumn 1980 report
of the London-based Institute for Strategic Studies, Iran's holdings
were ''believed to be considerably less'' than the 445 combat
aircraft it had before the 1979 Islamic revolution. The autumn report
gave Iraq's combat aircraft strength as 332.
    Both sides reported artillery duels flaring in and around the two
other major Khuzistan cities of Ahwaz, the provincial capital some 85
miles north of Abadan, and Susangerd, 35 miles to the east of Ahwaz.
    Each reported fresh helicopter gunship attacks on the other's
positions in the foothills of the Zagros mountains which command the
main highways from Iran's western border to Baghdad, the Iraqi capital
some 100 miles to the west.
    Iran claimed 290 Iraqi deaths in the past two days; Iraq claimed 171
Iranian fatalities for the same period.
    
ap-ny-12-07 1552EST
**********

a258  1524  07 Dec 80
AM-Hostage Ceremony,240
Joint Ceremony For Pearl Harbor And 52 Hostages
    HERMITAGE, Pa. (AP) - Parents of three of the Americans held hostage
in Iran ignored a chilly drizzle Sunday to attend a flag-raising
marking the 39th anniversary of the Japanese attack on Pearl Harbor
and the 400th day of captivity in Iran for the 52 Americans.
    Only about 50 people braved the weather for the ceremony at Hill
Crest Memorial Park, one of the smallest turnouts since the cemetery's
operators began raising a U.S. flag for each day of the hostages'
captivity.
    ''I was disappointed. We usually have a couple hundred people,''
said Kay Mack, an organizer of the ceremonies. The discouraging
weather probably kept others away, she said.
    Richard Hermening of Cudahy, Wis., father of hostage Kevin
Hermening, helped cemetery owner Tom Flynn raise a flag that had flown
over the sunken battleship Arizona in a Veterans Day memorial
ceremony at Pearl Harbor last month.
    ''The only connection between Pearl Harbor and the 400th day of
captivity is that they both happen to fall on Sunday,'' Ms. Mack said.
''I don't think it does any harm to remind people of Pearl Harbor.''
    Also at the ceremony was Teresa Lodeski of Edwardsville, Pa., mother
of hostage Bruce German, and Eleanor Kupke of Francesville, Ind.,
mother of hostage Rick Kupke.
    As the flag waved in the chilly breeze, National Guardsmen fired a
21-gun salute from howitzers.
    
ap-ny-12-07 1825EST
**********

n999  1526  07 Dec 80
. . .
ibx ny
a046
r i czcuivvyx
AM-IRAN-JUDGE
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN, Iran - Sheikh Sadegh Khalkhali, the roaming Islamic judge
who has sentenced hundreds of people to death, resigned as special
narcotics prosecutor Sunday in the midst of a controversy over
whether there is torture in the revolutionary jails.
    ''Inshalla, God willing, it will become clear who is a servant and
who is a traitor,'' Khalhkali said as he announced his resignation in
Parliament Sunday morning.
    ''Nowadays, certain people consider it heroic to attack me and say
things which are unsuitable. They are the ones who know nothing about
Islamic justice,'' he added.
    As the roaming judge of the Islamic courts, Khalkhali sentenced
hundreds of former supporters of the late Shah Mohammad Reza
Pahlavi's regime, including military and police officers and former
government officials, to death in a series of controversial secret
trials after the revolution. Later, during unrest in the Kurdish
region, he dispensed similar swift verdicts upon scores of rebellious
tribesmen.
    For the past six months he has headed a special task force named the
''Hit Squad'' dedicated to stamping out the narcotics dealing,
addiction and drug smuggling that has become a major problem here.
    The controversy began late last month when President Abolhassan
Bani-Sadr charged during a speech on the Ashura holy day that there
had been incidents of torture in the jails and criticized Khalkhali's
handling of the drive against drugs.
    The issue is a particularly sensitive one here because the
revolutionary leaders - many of whom were jailed under the past
regime - continually refer to the tortures committed under the shah
by the secret police, Savak, and speak of how they are changing
things.
    Bani-Sadr's accusations quickly became embroiled in the ongoing
power struggle between his liberal camp and the powerful clerical
group, who said the allegations were possibly counter-revolutionary
and demanded he produce proof.
    Responding to the criticisms, Khalkhali said:
    ''When he says some of the verdicts are not based on principle, did
he mean Islamic principles or Western principles? Under Western
principles, the criminals have to have lawyers and other matters to
escape the law. Yes, it's true I never paid attention to these
principles.''
    A short, rotund clergyman, Khalkhali established a colorful
reputation not only as the law east of the Tigris, but for a number
of other exploits. Last spring, for instance, he personally attempted
to demolish the mausoleum of the late shah's father with a sledge
hammer. Reza Shah is particularly hated by the clerics for his
efforts to break the traditional power of the clergy and religion,
including an incident in which he reputedly whipped a mullah with his
riding crop.
    In announcing his resignation, Khalkhali, who is also a deputy to
the Majlis, or Parliament, from the religious city of Qom, said he
was turning over warehouses containing 30 tons of confiscated heroin,
opium, morphine and hashish.
    ''When we have punished someone in the prisons, everything has been
done under my own direct supervision,'' Khalkhali said, defending his
tenure in office. ''When I instructed that someone be whipped 50
times, I supervised myself so they wouldn't beat him softly.''
    
nyt-12-07-80 1827est
**********

n999  1549  07 Dec 80
. . .
ibx ny
a049
r i czcuivqyv
AM-IRAN-JUDGE 1stLd-Pickup3dgraf a046
Eds, Changing Sheikh to Ayatollah, fixing quote in 2dgraf
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHERAN, Iran - Ayatollah Sadegh Khalkhali, the roaming Islamic
judge who has sentenced hundreds of people to death, resigned as
special narcotics prosecutor Sunday in the midst of a controversy
over whether torture is used in the revolutionary jails.
    ''God willing, it will become clear who is a servant and who is a
traitor,'' Khalkhali said as he announced his resignation in
Parliament Sunday morning.
    ''Nowadays, certain ... picking up 3dgraf previous.
    
nyt-12-07-80 1850est
**********

a302  1944  07 Dec 80
AM-Amnesty International, Adv 10,940
$adv 10
For Release 7 p.m. EST Tues Dec. 9
Rights Group Cites U.S. ''Ill-Treatment'' of Mexicans, Haitians
By SETH MYDANS
Associated Press Writer
    LONDON (AP) - Amnesty International, in its annual report on human
rights around the world, has cited the United States for what it calls
the ill-treatment of undocumented Mexicans and Haitians and ''severe
police brutality'' against ethnic minorities.
    The survey of 110 nations also assailed the Soviet Union for its
crackdown on dissidents and conditions in its prisons. Iran's Islamic
government was accused of executing 800 to 1,000 people since taking
over in February 1979.
    The report said that while there was increased international concern
over human rights, political arrests, torture and executions continue
in every corner of the globe.
    ''The victims included peasant families in El Salvador and
Guatemala, members of political, religious and ethnic groups in Iraq,
Iran and Ethiopia, and people in all walks of life in countries as
far apart as Afghanistan, Chile and the Philippines,'' the report
said.
    The report also mentioned Britain's non-jury trials in Northern
Ireland.
    In the section in which the United States was criticized, the report
said: ''There were persistent reports of ill-treatment of refugees
and workers who arrive in new countries without proper documents.
These included Mexicans and Haitians arriving in the United States, as
well as Haitians in the Dominican Republic and Colombians in
Venezuela. There were also reports of Haitians who sought refuge in
the United States being summarily sent back to Haiti, where some are
said to have been imprisoned and tortured.''
    It said its report on the cases of undocumented Mexicans indicated
that ''there is no systematic physical ill-treatment of undocumented
workers by the (U.S.) Immigration and Naturalization Service (INS),
but there is systematic psychological ill-treatment designed to deter
them from asserting their rights under U.S. law.''
    ''In addition, or perhaps as part of the same pressure, INS
officials and Border Patrol agents behave with quite unnecessary
rudeness and roughness in their dealings with undocumented workers,''
the report added. ''It is difficult to escape the conclusion that
this behavior is due to racial discrimination. Border Patrol agents
are much more likely to use physical brutality when apprehending
undocumented workers . . .
    ''Police brutality, especially towards members of ethnic minorities,
is widespread and severe, resulting in death in many cases . . .
Prosecutions of policemen do take place, but nearly always result in
acquittals or very light sentences.''
    It did not list any specific cases of alleged U.S. police brutality
against minorities, but Amnesty said ''many inquiries were directed
to state and federal authorities'' about charges of ill-treatment of
prisoners thoughout the United States.
    It specifically mentioned the federal penitentiary in Lewisburg,
Pa., where it said guards allegedly assaulted prisoners on Dec. 16,
1978, and the Walla Walla state penitentiary in Washington where
prisoners were alleged to have been mistreated on July 8, 1979. It
added that Washington state officials had informed Amnesty that the
Walla Walla charges were being investigated.
    The report, covering 12 months up to last April 30, found that in
Latin America, ''torture, disappearances, arbitrary arrests and
political killings were reported in many countries.''
    It singled out Argentina, Chile, El Salvador, Guatemala, Uruguay and
Paraguay as countries where ''violations of human rights seem to be a
permanent feature of government policy in dealing with dissent.'' It
expressed particular concern about the fates of people who
''disappear'' in Argentina, Brazil, Chile, Haiti and Mexico.
    In Eastern Europe, the report found that people ''continue to be
imprisoned for expressing their beliefs or opinions.''
    In the Soviet Union, it said, a ''major drive'' was launched a year
ago against all categories of dissenters. It also said Soviet prison
conditions remain ''marked by hunger, inadequate medical care and
hard, often dangerous labor,'' and that political prisoners are
ill-treated in psychiatric hospitals.
    In Poland, Romania, Czechoslovakia and other countries, it said,
dissenters were subjected to repeated short periods of arrest and
often ill-treatment.
    Elsewhere in Europe it cited ''persistent torture of political
prisoners'' in Turkey, and torture and ill-treatment of prisoners held
incommunicado under anti-terrorist legislation in Spain.
    In Iran it estimated that 800 to 1,000 executions had taken place
since the revolution in February, 1979, until the report was prepared
last April.
    In neighboring Iraq it found ''a sharp increase in executions.'' In
Syria there were reports of arrests, torture and summary executions
in the north. In Libya it noted a call for liquidation of enemies of
the revolution and murders of Libyans abroad.
    It found political imprisonment and ill-treatment of prisoners in
Saudi Arabia, Egypt, Morocco and Tunisia.
    In Israel and the occupied Arab territories, Amnesty voiced concern
over what it described as convictions of people for non-violent
expressions of their beliefs and detention without trial.
    In Asia, political imprisonment, often without trial, continued on a
vast scale, it said. Where trials are held, it added, they often lack
safeguards to insure fairness. It cited Taiwan, South Korea, Pakistan
and China.
    It noted a positive development in Indonesia where thousands of
political prisoners said to have taken part in a 1965 coup attempt
were released.
    In Vietnam and Laos, it said, thousands or people were still held in
''re-education'' camps.
    In Africa the report found ''momentous changes in a number of
countries, sometimes bringing more respect for human rights; but in
others detention without trial, executions, killings and ill-treatment
of detainees remained widespread.''
    The coming of independence to Zimbabwe, formerly Rhodesia, brought
improvements in human rights, with the release of thousands of
prisoners and the end of martial law regulations, it said.
    It noted political detentions and ill-treatment in Zaire, Ethiopia,
Cameroon and South Africa - where it said schoolchildren were among
those held incommunicado without trial for long periods.
    End Adv For Release 7 p.m. EST Tues Dec. 9
    
ap-ny-12-07 2245EST
**********

a010  2204  07 Dec 80
PM-Names,650
Names in the News
Laserphoto NY14
    NEW YORK (AP) - Although in exile, the son of the late Shah Mohammad
Reza Pahlavi is convinced he will one day sit on Iran's Peacock
Throne.
    ''All over the world, officers, students and soldiers condemned to
exile have formed groups and committees and are working to bring peace
and prosperity back to Iran,'' said Reza Pahlavi, who now calls
himself Shah Reza II.
    Pahlavi, 20, who has been given a home in Egypt by President Anwar
Sadat, said he would like to head a parliamentary democracy.
    ''Monarchy must change,'' said Pahlavi in an interview with People
magazine. ''The government must change when opinions change. The king
ensures continuity.''
    Meanwhile, his father's prime minister, Shahpur Bakhtiar, who has
formed a government-in-exile in Paris, has warned against those with a
''personal nostalgia for the Shah.''
    But Pahlavi, a student at American University in Cairo who announced
his assumption of his father's title six weeks ago, says he cannot
''shirk'' his responsibilities.
    ---
    NEW YORK (AP) - Lois Lane is finally going to get her Superman.
    So says Christopher Reeve, who played the muscular superhero in the
movie ''Superman.''
    Reeve, who drew the biggest crowd of the year recently as a guest
lecturer at Columbia University, said that Ms. Lane, the lovelorn
reporter who chases Superman but won't even glance at his alter ego,
Clark Kent, will win Supe in a forthcoming sequel.
    However, Reeve, who is currently playing a crippled, homosexual
Vietnam veteran in the Broadway play ''Fifth of July,'' would not
reveal what he said was a surprise ending to ''Superman 2.''
    Also during the lecture, Reeve called Katharine Hepburn, his co-star
in the play ''A Matter of Gravity,'' a ''very nosey acting partner.''
    Reeve said Miss Hepburn, who started winning Oscars nearly 50 years
ago, ''tries to run everybody's life, telling them what do do about
everything.''
    ---
    CHICAGO (AP) - Tenor Luciano Pavarotti, king of the high Cs, joined
16 other opera stars and a fiddler at a benefit concert for the
Chicago Lyric Opera's Italian Earthquake Relief fund.
    The concert raised $100,000 from the sale of 3,550 tickets, which
sold out in less than two hours.
    More funds are expected because the concert was broadcast by radio
in 200 cities Sunday afternoon, along with an appeal for donations,
said opera spokesman Danny Newman. Last month's earthquake devastated
much of southern Italy, leaving 4,679 people dead and missing.
    Pavarotti, a native of Modena, Italy, appeared with opera stars such
as Tatiana Troyanos, Renata Scotto and Anna Tomowa-Sintow. There was
also a surprise appearance by violinist Itzhak Perlman.
    The concert included numbers from ''Don Giovanni,'' ''Madama
Butterfly,'' ''Carmen,'' and ''Boris Godunov,'' among others.
    Newman said the funds would not be turned over to the general relief
fund in Italy. He said he could not give details on their handling.
    ---
    COLUMBIA, S.C. (AP) - For those who missed Sen. Strom Thurmond's
78th birthday gala, relax. He's planning on having plenty more.
    ''I hope to live to 120,'' the Republican senator quipped when some
3,000 people turned out Sunday to honor him in festivities at the
state fairgrounds.
    The event, billed as a non-partisan affair, was complete with cake,
punch and cookies, music, presents, words of appreciation and
political quips.
    Former Gov. Robert McNair read a resolution citing Thurmond for his
50 years of service to the people of South Carolina. And when
Thurmond blew out the single candle on his birthday cake, McNair
joked: ''There was no doubt in anyone's mind he would have the wind to
blow out the candle.''
    
ap-ny-12-08 0104EST
**********

a012  2227  07 Dec 80
PM-Washington Today, Bjt,610
An AP News Analysis
Soviet Intervention Could Test Reagan's 'Linkage' Theory
By DONALD M. ROTHBERG
AP Political Writer
    WASHINGTON (AP) - The Soviet troops poised on the borders of Poland
are an ominous sign that the doctrine of linkage, a cornerstone of
Ronald Reagan's foreign policy, could be severely tested soon after
his inauguration.
    The Middle East, Afghanistan, the American hostages in Iran, unrest
in Latin America - all these would pale next to the impact of Soviet
intervention to quash the freedoms won by the Polish labor movement.
    While there seems little doubt that the initial world reaction to
such a move by the Soviets would be outrage and condemnation, it also
would raise serious long-term questions about how far the United
States could pursue linkage as the foundation of relations with the
Soviet Union.
    That doctrine, propounded by Richard M. Nixon and Henry A.
Kissinger, stated that issues between the United States and the Soviet
Union could not be seen in isolation. The success of arms control or
trade negotiations would depend on Soviet attitudes and behavior on
other issues.
    At a news conference two days after he was elected president, Reagan
said flatly, ''I believe in linkage.''
    Jimmy Carter rejected linkage when he moved into the White House. He
argued that control of nuclear weapons was too important to link the
SALT II treaty to Soviet actions everywhere in the world.
    But Carter was unable to unilaterally abolish the concept of
linkage. The SALT treaty was undercut by the disclosure that there was
a Soviet combat brigade in Cuba and destroyed by the Soviet invasion
of Afghanistan.
    Now Reagan may face a test of how fully the doctrine can be applied
in U.S.-Soviet relations.
    The Soviets know the price they would have to pay to intervene in
Poland. Relations with the United States and most other nations would
deteriorate sharply. U.S. military spending, already certain to
increase markedly, would go up even more. Any hope the Soviets have of
improved trade and technological exchanges with the United States or
with Western European nations would end for the immediate future.
Detente would wither in the cold wind from the East.
    But the presence of all those Soviet troops on Poland's borders
indicates there is a strong faction in Moscow that believes that the
trends in that Eastern European nation are too dangerous to ignore.
    While the immediate price may be severe, how long would it last?
    In the past, U.S. leaders have been frustrated in efforts to gain
long-term support from Western Europe for coordinated policies that
require sacrifices from the allies, whether those policies were
directed against the Soviets or Iran.
    If Western European nations began to relax sanctions against Moscow
and, for example, sold high technology computers to the Soviets, what
would the response be from the Reagan administration?
    After all, it was candidate Reagan who argued against Carter's
effort to embargo the export of nuclear technology to Pakistan on the
ground that if other nations were unwilling to observe such an
embargo it was futile for the United States to do so.
    Reagan also would face continuing decisions as to whether specific
issues were so strongly in the interest of the United States that
progress with the Soviets would be essential regardless of Kremlin
policies.
    How would Reagan respond, for example, if the Soviets said they were
willing to begin negotiations on the sort of real strategic nuclear
arms reductions Reagan says he hopes to achieve?
    All these questions remain hypothetical so long as the Soviets allow
the Polish regime to deal with its internal problems. But eventually,
whether because of Poland or some unforeseeable crisis, Reagan may be
forced to re-examine some of his hard-line beliefs.
    
ap-ny-12-08 0128EST
**********

a020  2352  07 Dec 80
PM-Fuel Switching, Bjt,680
The Fault, Dear Brutus, is Not in Our Stars, But in Our Furnaces
By MARTIN CRUTSINGER
Associated Press Writer
    WASHINGTON (AP) - To switch or not to switch - that is the question.
    Whether 'tis nobler to bear the slings and arrows of outrageous oil
prices.
    Or get a natural gas furnace.
    For millions of homeowners - faced with fuel oil prices that have
more than doubled since 1977 - it really is the winter of their
discontent. And the experts are giving conflicting advice.
    A new government study says as many as 6 million homeowners should
consider switching from oil heat to natural gas to save themselves
money and the country up to 725,000 barrels of oil a day.
    But that study, by the Environmental Protection Agency, contradicts
the findings of an October report by an energy-oriented consumer
group.
    The Consumer Energy Council of America concluded, ''Converting
heating systems from oil to natural gas is one of the least effective
ways for consumers to reduce their energy bills.''
    The council - made up of consumer, labor and senior citizen groups -
estimated that as many as 95 percent of homeowners who have changed
their heating systems in the last two years may have made a mistake.
    The EPA, however, concludes: ''Whenever an existing oil furnace or
boiler wears out, any homeowner who ... has ready access to a gas main
should install gas heating equipment. The best gas heating equipment
is equal to or better than the best oil heating equipment from an
efficiency and cost standpoint.''
    How could two groups come up with such seemingly different
conclusions?
    Part of the reason is that no one really knows what will happen to
the price of natural gas.
    Heating oil now costs about twice what natural gas does in most
parts of the country. All sides agree that difference will eventually
disappear, but no one can say for sure when.
    Under the 1978 Natural Gas Policy Act, more than half the gas
produced domestically will be freed of government price controls on
Jan. 1, 1985, with the rest being decontrolled over the next several
years as old contracts expire.
    But many of President-elect Ronald Reagan's top energy advisers
support a speed-up in decontrol. If that occurs and the price
difference between the two fuels shrinks more quickly, homeowners may
find they won't recoup conversion costs.
    The American Gas Association, however, predicts natural gas will be
20 percent to 50 percent cheaper than fuel oil for most regions over
the next 10 years. In that time, the homeowner who converts can save
up to $9,500 in energy costs, the association says.
    But the energy council says both the association and the EPA ar%
putting too much emphasis on the costly option of remodeling an
existing heating system when cheaper conservation measures would bear
greater returns.
    According to the council's figures, a consumer who installs $680
worth of insulation will save $8,786 in fuel costs over 20 years, but
would save only $2,135 in fuel costs by replacing his oil furnace
with a gas unit. It put the cost of the furnace switch-over at $1,300.
    The EPA study agrees that homeowners should add insulation, storm
windows and weatherstripping to reduce fuel use before spending money
on conversions. But the EPA was still more bullish in its estimate of
the number of homeowners who could benefit from a switch to natural
gas.
    The agency estimated that 8 million of the 12 million homes with oil
heat have furnaces that are more than 10 years old and are thus
candidates for conversion.
    The study said 6 million of these furnaces are located in parts of
the country as cold or colder than Kansas City and Baltimore and would
thus consume enough fuel to make conversion attractive.
    But it appears many homeowners aren't waiting for the experts to
reach a conclusion on the switch-over debate. Gas industry statistics
put the number of conversions in the last two years at 748,000, and
the Iran-Iraq war threatens to drive heating oil prices even higher
this winter.
    
ap-ny-12-08 0253EST
**********

a034  0143  08 Dec 80
PM-Syria-Jordan, Bjt,400
No Confirmation Of Syria-Jordan Pullback
By STEVE K. HINDY
Associated Press Writer
    AMMAN, Jordan (AP) - Syria says its forces and Jordan's are pulling
back from their border, but Jordanian sources refuse to confirm it.
    Meanwhile, the Jordanians accuse the Russians of fomenting the
crisis.
    Syrian officials said the pullback began Saturday, and about 25
percent of the forces on both sides had been withdrawn.
    Jordan had no official comment on the border situation, but one
source in Amman said, ''We are still taking this seriously.''
    Prince Abdullah bin Abdel-Aziz, Saudi Arabia's deputy prime minister
and national guard commander, and Chadli Kleibi, the Arab League's
secretary general, have been trying to mediate the dispute.
    Syrian President Hafez Assad began the buildup Nov. 20, massing
50,000 troops and 1,200 tanks on the border. He then led a boycott of
the Arab League summit in Amman Nov. 25-27. Jordan's King Hussein
responded by deploying 30,000 soldiers and 600 tanks on the frontier.
    Assad said the purpose of the border buildup was to get Hussein to
return anti-Assad guerillas of the fundamentalist Moslem Brotherhood
taking shelter in Jordan and to pledge not to undercut the Palestine
Liberation Organization in any Mideast peace talks Hussein might have
with the Reagan administration.
    Hussein has publicly declared support for the PLO as the
''legitimate representative of the Palestinian people'' and denied
that the Amman government is giving sanctuary to the Brotherhood
guerrillas, who Assad blames for killing 200 Syrians in bombings and
assassinations in the last 18 months.
    The 20-year Soviet-Syrian friendship and cooperation treaty came
into force last week, and one Jordanian official said the pact further
solidified the ''Soviet presence and encroachment in the four
corners'' of the Mideast chessboard - Syria, Iran, South Yemen and
Ethiopia.
    ''It's for sure the Soviets are behind these events on the border,''
said the official, who requested anonymity. ''They are trying to
create struggle areas in the Middle East to confront the new
administration of Reagan. They stir things up to give themselves more
chance to get in.''
    The official said the Syrians also want to pressure Jordan not to
aid Iraq in its war against Iran. Syria backs Iran in the war. The
official said the second benefit to the Syrians is that the crisis
draws attention from Assad's troubles with his foes at home.
    
ap-ny-12-08 0443EST
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n999  0355  08 Dec 80
. . .
ebx cd
a539
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BC-ORFA-2takes-12-08
    A COMMENTARY Feature
    By Norma Guzman
    (c) 1980 Chicago Sun-Times (Field News Service)
    For Oriana Fallaci, fear-like pain-is worse than death.
    The celebrated Italian journalist has had to control her fear to get
the story-to cover wars and revolutions.
    She left it behind police barricades to get a closer look at
anti-government rioters in Mexico City in 1968, where three bullets
tore into her back and thigh and sent her to the hospital for months
of recuperation.
    Again in Vietnam, she risked her life to follow soldiers across
minefields.
    In her political interviews for the Italian magazine, L'Europeo, she
has shown a brassy disregard for convention and authority, displaying
her ambivalent fascination with power.
    She is drawn to it but she also has contempt for it, is repelled by
it, abhors the abuses and the cruelty that it can create. She has
called herself an anarchist, she rejects ''objective journalism'' and
refuses to conceal or compromise her leftist convictions.
    While questioning the Ayatollah Ruhollah Khomeini in 1979, she
violated rigid Islamic custom by appearing without a chador, the veil
required of all women by that religion.
    It was a ''stupid, medieval rag,'' she said to the man who imposes
it on the women of Iran. Then, she was outraged. Now, she tells the
story in her husky, smoker's rasp, waving her hands in the air and
laughing at the irony.
    In her attraction to and revulsion of power, and what she often sees
as egomania, she has taken on, in remarkably revealing interviews,
almost every major world leader-the PLO's Arafat, the Shah of Iran,
Indira Gandhi, Golda Meir, Willy Brandt, Ali Bhutto are among her
legion of subjects.
    One of her most notable interviews was her unmasking of Henry
Kissinger, who, in describing his role as secretary of state,
compared himself to a cowboy ''who rides all alone into the town.''
Because Fallaci tore away these veils and crossed the battlefields,
she was called fearless-even of death. But she never believed that
she had ever conquered fear, and four years ago she knew she was
right.
    The fear she found most fearsome had nothing to do with death, she
said. ''The real fear that I have in life is the fear of love,''
Fallaci said.
    She writes about such a commitment and its danger and power in her
new novel, ''A Man,'' (Simon and Shuster), which is based on the life
of Alexandros Panagoulis, the Greek poet and revolutionary who fought
against the military junta in Greece.
    He was also Fallaci's lover and companion for three years, until his
death in 1976 in a car accident she believes was murder. This is not
an unlikely conclusion, for he had enemies.
    In 1968 Panagoulis tried to assassinate George Papadopoulos, the
ruling colonel in the junta that made Greece a totalitarian state. He
planted a bomb that was to obliterate the Papadopoulos car, but the
attempt failed.
    Panagoulis was caught and imprisoned, and he and Fallaci met upon
his release in 1973, when the junta was overthrown.
    In an interview in her hotel suite, Fallaci was asked if she, as a
journalist, abandoned journalism to write this book.
    ''I didn't want to write the story of Alekos Panagoulis, that
particular man,'' she said. ''I wanted Alekos Panagoulis to become a
universal character.''
    Her answer was fiction, to make the story into a fairy tale, a myth.
A novel, she said, can sometimes tell a ''truer'' truth than is
possible in history or journalism. And the fairy tale has a universal
form and language. ''The development of the fairy tale in any
culture, in any ethnic group, is always the same,'' Fallaci said.
    After the act-in Panagoulis' case, the assassination attempt-that
introduces him to the kingdom of heroism, Fallaci said, ''there is
the great test, when the hero goes through torment, suffering, the
trial and the prison.''
    MORE
    
nyt-12-08-80 0655est
**********

a058  0519  08 Dec 80
PM-Yamani,330
Saudis May Cut Back Oil Production in January
By ABDEL JALI MUSTAFA
Associated Press Writer
    KUWAIT (AP) - Saudi Arabia's oil minister, Sheik Ahmed Zaki Yamani,
said today the world's largest oil exporter will consider reducing
its output before Jan. 1 and review production on a month-by-month
basis in 1981.
    Saudi Arabia boosted its daily production from 9.5 million barrels a
day to 10.5 million barrels a day in October to compensate for the 4
million barrels a day lost since Iran and Iraq attacked each other's
oil installations in their 78-day-old war.
    ''We will reconsider this at the end of this month (December),''
Yamani told reporters at the start of a two-day conference of nine
Arab oil ministers.
    He said his country's production policy would thereafter be reviewed
on monthly basis.
    The Saudi Arabia decision follows Iraq's resumption of oil shipments
through pipelines to the Mediterranean via Syria and Turkey which
total about 800,000 barrels a day - about one-quarter of Iraq's
pre-war exports of 3.2 million barrels daily.
    Iran is also estimated to be pumping about 100,000 barrels a day
through terminals at Lavan and Kharg islands in the Persian Gulf.
    The ministers' agenda includes a discussion of how to combat the
''indifference'' of Western oil producers to the supply shortfall
resulting from the war.
    Prices also were on the minds of the oil ministers, although not a
subject of the meeting.
    Mana Saeed Otaiba, oil minister of the Persian Gulf state of the
United Arab Emirates, said Sunday he will insist on a price freeze at
the next summit meeting of the Organization of Petroleum Exporting
Countires scheduled for Dec. 15 in Bali, Indonesia.
    Saudi Arabia and Qatar were said by conference sources to support a
freeze of prices at the maximum level of $37 a barrel to help relax
tensions in world markets caused by the Persian Gulf war.
    The last OPEC conference of 13 major oil-producing nations set the
maximum base price at $32 dollars a barrel plus a maximum surcharge of
$5 per barrel for quality differentials and freight premiums.
    
ap-ny-12-08 0820EST
**********

a059  0531  08 Dec 80
PM-Hostages-War Rdp,580
Indications Of Progress In Hostage Crisis
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - The latest clarifications of the U.S.
position on Iran's demands for release of the 52 American hostages
contain changes favorable for Iran, a leading Iranian official said.
    ''Totally, I can tell you that there are some changes, favorable
changes for us,'' said Behzad Nabavi, head of the Iranian commission
studying the case of the hostages, who today began their 401st day in
captivity.
    Iran has demanded the U.S. government return the wealth of the late
Shah Mohammad Reza Pahlavi and his closest relatives, drop lawsuits
against Iran, release $8 billion in Iranian assets frozen in U.S.
banks and pledge not to interfere in Iran's affairs in exchange for
the hostages.
    Informed sources said the latest U.S. clarifications contained no
objection to the non-interference pledge and unfreezing the assets,
and offered assistance in fighting the legal claims against Iran and
help in locating the whereabouts of at least some of the shah's
fortune.
    Nebavi's comments, in an interview Sunday with Greek television in
Tehran, represented the first real indication of government reaction
to the U.S. clarifications that were requested by Iran last month.
    The response has been under study since Thursday when it was
explained by Algerian envoys who are acting as intermediaries at
Iran's request. The diplomats remained in Tehran awaiting instructions
for relay to Washington.
    Nabavi said the hostages were in good health and would soon be
transferred to the custody of the government by the militants holding
the U.S. Embassy in Tehran since Nov. 4, 1979.
    But he refused to state their location, saying only they had to be
rounded up from several points. The whereabouts of the captives has
not been confirmed since the U.S. attempt to rescue them failed in
April.
    Ayatollah Ruhollah Khomeini, Iran's revolutionary leader, declared
Sunday that both the United States and the Soviet Union want to
destroy Iran.
    ''Keep always in mind that the East and West are our enemies and
whatever they give us is meant for our destruction,'' he said.
    He also warned against attempts to ''establish a dictatorial
state,'' a reference to the power struggle between President
Abolhassan Bani-Sadr, a moderate, and Prime Minister Mohammad Ali
Rajai, supported by hard-liners.
    Bani-Sadr has been especially critical of Ayatollah Sadegh
Khalkhali, a revolutionary judge who sent hundreds before firing
squads and was director of the nation's special anti-narcotics courts.
    Khalkhali resigned his anti-narcotics post Sunday amid accusations
of torturing suspects. The official Pars news agency did not give the
reason for his resignation.
    Iran and Iraq blasted each other's oil centers with heavy artillery
and helicopter gunships today as troops and tanks battled around the
four major cities of Iran's main oil province of Khuzistan, war
communiques reported.
    Iraq, meanwhile, resumed shipments of one fourth of its pre-war oil
exports hoping to earn back about $25 million a day. Iran's
Parliament overwhelmingly passed a bill that allows Iranian imports
and exports to transit overland through the Soviet Union to beat the
difficulties posed by the 78-day-old Persian Gulf war.
    Iraq's oil exports through the gulf have been stopped altogether
since Iraq invaded Iran Sept. 22. But it resumed exports of 450,000
million barrels a day by pipeline through Turkey two weeks ago and
pumped a daily average of 350,000 barrels from its northern oilfields
in Kirkuk by another pipeline last week, Iraqi officials said.
    
ap-ny-12-08 0832EST
**********

a066  0626  08 Dec 80
PM-Hostages-War Rdp,1st Ld, a059,200
Rafsanjani says U.S. response ''closer'' to solution
Eds: Tops with response of speaker of Iranian Parliament.
URGENT
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - The 13-month-old U.S. hostage crisis has
moved closer to a solution as a result of the latest American response
to Iranian demands for release of the 52 captives, the speaker of the
Iranian Parliament said in Tehran today.
    Hashemi Rafsanjani told reporters that the U.S. clarification
delivered Thursday by Algerian diplomats ''has come closer to solving
the problem'' and that the issue would not be re-examined by
Parliament, or Majlis.
    ''In the past the U.S. has accepted our demands in principle,''
Rafsanjani told a news conference. ''But this time it has taken more
clear steps in executing them.''
    His comments come on the heels of statements Sunday by Behzad
Nabavi, head of the government commission studying the issue, that the
U.S. response is more favorable to Iran.
    The developments came as the Algerian diplomats remained in Tehran
awaiting instructions from the Iranians for relay to the United
States.
    On Sunday, Navabi said ''Totally, I can tell you that there are some
changes, favorable changes for us.''
    Iran has: 3rd graf
    
ap-ny-12-08 0927EST
**********

n999  0658  08 Dec 80
. . .
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BC-IRAN
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN - In Iraq the enemy is the ''racist Persian regime.'' Here it
is the ''infidel, the atheist Saddam Hussein.''
    The two countries at war in the Persian Gulf are spewing a steady
stream of vitriolic propaganda to their people - and across each
other's borders - over the state-run radio and television stations
that, in these emerging nations, are a powerful means of control.
    The themes of the propaganda say much about how the rulers of the
two countries view themselves.
    In Iraq the line is heavily nationalistic, plays upon the historic
enmity between Arabs and Persians and dwells unceasingly on the
leadership of Hussein.
    In Iran the theme is exclusively religious. The battle is portrayed
as being for Islam and against an irreligious government that has
somehow captured Moslem brothers. Nationalism, although it is an
important force, particularly among the revived Iranian military, is
scarcely mentioned and, indeed, often denigrated.
    The propaganda messages of Iran and Iraq have one thing in common.
Each country says the other is a tool of the United States and
accuses American imperialism of fomenting the conflict. The specifics
are somewhat vague.
    In both countries the television each night is largely given over to
film from the battlefields and interviews with soldiers. The news in
each country consists largely of military communiques announcing
victories over the other country. Both sides claim to have destroyed
huge quantities of aircraft, tanks and other equipment.
    For the last 2 1/2 months Iraq has reported almost daily that its
forces are ''tightening the noose'' around the key oil refining city
of Abadan. Iran, in turn, has reported each day that the ''heroic
defenders are repulsing the invaders.''
    The main theme on Iraqi television is President Hussein. Each night
he is seen, wearing a traditional red-checked scarf around his head
and a fatigue uniform with the insignia of a field marshal and
carrying a pistol. He is shown visiting ordinary families, sitting on
their sofas and opening refrigerators, inspecting troops or visiting
the wounded.
    The Iraqi television also features a choir and singers who perform
patriotic songs throughout the day, frequently dressed in military
garb, and with films of planes or battle scenes projected behind
them. One of the lead singers, a rotund man given to sweeping
gestures, is sometimes dressed as a pilot, wearing a helmet with its
black face mask pulled down, creating a somewhat unlikely appearance.
    The longstanding ethnic strains between Arabs and Persians are
constantly stressed in the language of the Iraqi propaganda. The
enemy is invariably referred to as the ''racist Persians,'' for
example, and the Arabic makeup of much of the population of oil-rich
Khuzistan Province, the main battle area, is stressed.
    The two themes are combined in what has become one of the major
thrusts of Iraqi propaganda, the portrayal of the war as ''Saddam's
Qadesiyya.'' This is a reference to the battle in 636 A.D. in which
the Arab armies, fighting under the flag of the new religion of
Islam, swept out of the desert to defeat the Persians, who then ruled
between the Tigris and Euphrates. Hussein has aspirations to be the
leader of the Arab world.
    To Iranian leaders the point may be somewhat ambivalent since it was
the Arab invasion of the seventh century that brought Islam to what
is now Iran.
    In avowedly secular Iraq there are frequent digs at the clerical
powers in Iran as backward or reactionary and Ayatollah Ruhollah
Khomeini is sometimes referred to as the ''black magician.''
    The Iranians are constantly described, in terms of contempt and
hostility, as Magians. Although the term is used in official language
many times a day, baffled Western reporters were never able to find
an Information Ministry official able to explain precisely what a
Magian was.
    The Magi, in fact, were a priestly class among the Medes who came to
dominate religious affairs in ancient Persia and who, drawing on
their own tradition of nature worship and veneration of fire, headed
the Zoroastrian religion. Zoroaster is thought to have been a Magus.
    In Iran, nationalism is frowned upon by the dominant clerical
political figures. Although nationalism was encouraged under the
Shah, the new leaders' ideology holds that Islam should sweep across
all borders. The national concepts, they hold, are mere lines drawn
on maps by the Western colonialists to set Moslems against each other.
    Thus, rather than being anti-Iraqi, the Iranian propaganda line
continually uses variations of such words as ''infidels,''
''atheistic regime,'' or ''apostate Baathists.'' In military
communiques the Iraqi soldiers are referred to as ''the deceived
ones'' or ''the mercenaries.''
    ''The soldiers of Islam,'' a typical Iranian annoucement goes,
''today attacked the Iraqi forces of blasphemy.''
    Saturday night, for example, Ayatollah Khomeini was shown on
television meeting with revolutionary guards back from the fighting
and saying: ''When I see these young faces, these hearts with their
attention to God - you can see it on their faces - I feel modest.''
All present wept.
    And, after a staff meeting Saturday night, the top military
commander, Gen. Valliollah Falahi, said all his forces were ''in the
line of the Imam, in the line of Islam and in the line of God. Belief
and steel are confronting steel alone.''
    The religious themes and denunciations of the Great Satan - the
United States - are constantly stressed by clerical figures.
    
nyt-12-08-80 0957est
**********

n999  0702  08 Dec 80
. . .
ixx ny
a007
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BC-IRAN Addatend
NYT TEHRAN: clerical figures.
    Despite the new outlook of the clerical leaders, a fierce
nationalism and a distinction of being Persian rather than Arab, is a
long tradition here. It appears to have played a role in the new mood
of national unity and pride that has grown up during the war.
    This appears to be particularly true among the army and air force
officers, many of whom, educated in the West, have been less than
enthusiastic about clerical rule. Many air force officers who were
jailed in an alleged coup plot have been freed to fight.
    When President Abolhassan Bani-Sadr, who has made frequent visits to
the front, praised the bravery of a group of pilots recently they
burst into the song ''Oh, Iran,'' a patriotic air dating from the
rule of the late shah's father and rarely heard nowadays.
    ''Whenever they interview the army, it's 'Our country, our
motherland.' When they interview the revolutionary guards it's 'Dear
Islam,' '' observed an Iranian. ''You feel they're coming from
different countries.''
    Indeed, the question of patriotism, which is being defended in some
liberal circles here, points to a significant difference in the two
countries.
    Iran appears united in its conduct of the war despite a wide
political brawl between rival clerical and liberal political factions
that intensifies each day.
    Iraq is ruled by a unified and powerful Government. ''We are strong
in our Baathist ideology and following the political leadership'' is
a common reply by military officers to questions from reporters. Yet
it seems highly fearful of internal dissent, perhaps because of a
history of coups, perhaps significantly now, because its secular
regime, dominated by Sunni Moslems and some Christians rules over a
population that is more than half Shiite.
    Perhaps this is the reason for the latest version of the ubiquitous
posters of the Iraqi President. It shows Saddam Hussein kneeling on a
prayer rug.
    
nyt-12-08-80 1001est
**********

a081  0820  08 Dec 80
PM-Hostages-War Rdp, 1st Ld-Sub, a066,180
BEIRUT: to update with further Rafsanjani quotes on Majlis role, sub
6th graf: On Sunday . . . for us.''
    Asked about a statement by Nabavi that the issue would be returned
to the Majlis if the United States accepted some of the four
conditions and rejected others, Rafsanjani replied:
    ''We (the Majlis) have given our final opinion about the hostages. I
do not think that the subject will return. If the U.S. meets our
demands, and it seems that they want to, the problem will be
settled.''
    By ruling out further study of the issue by the Majlis, Rafsanjani
apparently cleared the way for the government of Prime Minister
Mohammad Ali Rajai to act on its own.
    ''There is little that is unclear,'' Rafsanjani said. ''The
commission is studying the response of the U.S. and naturally it will
announce its view.''
    Rafsanjani has previously adopted a hard line on the hostage
question and his optimistic assessment of the situation would seem to
indicate the revolutionary government's general acceptance of the
U.S. position.
    Iran has: 6th graf
    
ap-ny-12-08 1121EST
**********

n999  0924  08 Dec 80
. . .
cxx nypt
a025
r c czcbylwyf
BC-HAIG
By RICHARD L. MADDEN
c. 1980 N.Y. Times News Service
    HARTFORD, Conn. - When the celebrities at a charity fund- raiser the
other night were asked to stand up and talk about the greatest
handicap each had overcome, Harry J. Gray, the chairman and chief
executive officer of the United Technologies Corporation, joked that
his biggest handicap used to be that the government would only let
him acquire one company at a time.
    But now, Gray went on, his biggest handicap was wondering whether
the Government was about to acquire his president.
    The president of Gray's company is Alexander M. Haig Jr., the former
NATO commander who was the White House chief of staff in the final
months of Richard M. Nixon's Presidency. The 56-year-old general is
under consideration by President-elect Ronald Reagan for the position
of secretary of state, although Haig and his spokesmen have said he
has not been approached about taking the job.
    If the nomination does materialize, Haig would be returning to
Washington from a relatively brief stint as second-in-command of one
of the nation's largest conglomerates, which has substantially
expanded its business operations in foreign countries in recent years
while moving up to become the nation's third-largest defense
contractor.
    Haig, who briefly considered seeking the Republican presidential
nomination himself last year, joined United Technologies only last
Dec. 24. He was sidelined for six weeks earlier this year for
triple-bypass heart surgery, but company officials said he had
bounced back quickly and had been actively involved in corporate
affairs.
    Gray, who since 1972 has expanded United Technologies (formerly
United Aircraft) into the nation's 10th-largest manufacturing
company, is scheduled to retire in 1985, and it has been widely
assumed by company officials that Haig was being groomed to succeed
him.
    Gray, the dominant force in the company, held the titles of chairman
and president before Haig joined, and it is not known how he would
restructure the top management if Haig left.
    Next in line are the company's two executive vice presidents, who
also hold seats on the 16-member board of directors: Robert J.
Carlson, who came from Deere & Company in 1979, and Peter L. Scott,
who founded two electronics companies on his own before joining the
company in 1975.
    United Technologies, based in Hartford, has long been Connecticut's
largest employer, with its Pratt & Whitney factories producing
aircraft engines; its Sikorsky operations manufacturing helicopters,
and Norden Systems producing military electronics.
    But its acquisitions in recent years, Otis Elevator; the Carrier
Corporation, manufacturers of air-conditioning and heating equipment,
and the Mostek Corporation, a semiconductor manufacturer, have
expanded operations far beyond Connecticut. Its major European
operations, in fact, are Otis and Carrier. The company now employs
200,000 people - 46,000 of them overseas - in more than 300 plants.
    Sales have increased from $2 billion in 1970 to $9 billion last year
and are expected to reach $12 billion this year. International sales,
which now account for about 40 percent of the company's business,
amounted to $1.4 billion in products exported from th3 United States
and $2.1 billion from goods produced in Europe and other countries
last year.
    It is defense equipment, such as jet engines and helicopters, for
which the company has been best known. In the past decade, United
Technologies has moved from the eighth-largest defense contractor to
the third largest (behind General Dynamics and McDonnell Douglas),
but because of acquisitions and other growth, the government sales
portion of the company's business has declined from more than 50
percent 10 years ago to about 22 percent this year.
    Late last month, in what was described as a routine legal step to
protect the company's interests, United Technologies filed suit to
recover more than $7 million that the company says Iran owes it for
aircraft and other equipment sent to the United States for repair
before the seizure of the United States embassy in Tehran and for the
confiscation of an Otis Elevator operation.
    In bringing Haig in last year, Gray cited the retired army general's
background in domestic and international affairs. ''Because of our
growing presence on the international business scene, we at UTC have
special responsibilities on a broader scale than ever before,'' Gray
said. ''Fulfilling them requires special sensitivities and concerns.''
    The company's connections to once and future Republican
administrations are strong.
    Haig was a delegate from Connecticut to the Republican National
Convention last July and is a member of Reagan's transition team.
William E. Simon, a former Secretary of the Treasury who recently
took himself out of the running for a Reagan cabinet post, became a
company director earlier this year. Clark MacGregor, the senior vice
president for external affairs, directed Nixon's re-election campaign
in 1972. John M. Oblak, the company's technical planning director and
a former Commerce Department executive, has been named by Reagan to a
strategic minerals task force.
    
nyt-12-08-80 1223est
**********

n999  1057  08 Dec 80
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BC-ADDSKED
ADD N.Y. TIMES News Service sked for Monday, Dec. 8, 1980
INTERNATIONAL',
    Warsaw--POLAND--The Polish army newspaper warns against strikes and
''social unrest'' and hints that the military might intervene to
b Communists renew verbal assaults
against Polish unions. 600.
    East Berlin--POLAND-RECALL--The Soviet commanders in East Germany
and Czechoslovakia have been called to Moscow. 700.--by John Vinocur.
    Washington--STRATEGY-III--Last in series: The state of readiness of
the Russian army. 1200.--by Philip Taubman.
    Lisbon--MANINTHENEWS--Antonio Dos Santos Ramalho Eanes, big winner
in Portugal's elections, is the Man in the News. 900.--by James M.
Markham.
    New Delhi--BREZHNEV--Soviet leader Leonid I. Brezhnev arrives in
India for an official four-day visit. 800.
    Dublin--THATCHER--British Prime Minister Margaret Thatcher arrives
in Dublin for talks with Irish government. New York's Senator-elect
Alfonse D'Amato also flies in to see the Northern Ireland situation
first hand. 900.--by William Borders.
    Tehran--IRAN--The Speaker of Iranian parliament says hostage crisis
is closer to resolution as a result of latest American response to
Iranian demands for their release. 700.--by John Kifner.
    Salisbury--RHODESIA--A cabinet minister is found guilty of murder,
then is set free under a technicality. 750.--by Joseph Lelyveld.
WASHINGTON
    CONGRESS--House Republicans and Democrats elect leaders for new
Congress. 700.--by Martin Tolchin.
    COURT--The Supreme Court to rule whether Larry Flynt was unfairly
singled out for Ohio obscenity prosecution. 800.--by Linda Greenhouse.
FINANCIAL
    Washington--CHRYSLER--Chrysler developments, including a bid for
more guaranteed loans. 650.--by Edward Cowan.
    
nyt-12-08-80 1356est
**********

a220  1225  08 Dec 80
AM-War Rdp, Bjt,670
Oil Centers Pounded, Coup Reported 'In Process' in Iran
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran and Iraq claimed they hammered each
other's oil centers Monday and a warning was sounded in Tehran of an
attempt to overthrow the Islamic revolutionary regime of Ayatollah
Ruhollah Khomeini.
    War communiques reported the giant oil refining complex of Iran's
beleaguered city of Abadan on fire from new Iraqi artillery
bombardment and helicopter gunship raids. Iraq's main Persian Gulf oil
terminal of Fao also was reported ablaze from reciprocal Iranian
attacks on the 78th day of the war.
    ''The people of Iran must know that a dangerous coup d'etat is in
process to destroy this regime,'' said parliament member Ali Agha
Mohammad at a parliamentary session. He called on the people, army and
lawmakers to close ranks. His remarks were broadcast by Tehran Radio
and monitored in Beirut.
    He did not explain what he meant by a coup ''in process,'' but
indicated counter-revolutionaries might be capitalizing on a current
power struggle between moderates backing Iranian President Abolhassan
Bani-Sadr and clergy-led radicals supporting Prime Minister Mohammad
Ali Rajai.
    Both Iran and Iraq have been calling for the overthrow of the
other's regime. Although both are Moslem nations, Iran's 36 million
people are predominantly Persian, Iraq's 13 million are Arab. The
animosity and border conflicts between the two nations date back to
the early days of Islam.
    Iran's defense minister, Col. Javad Fakuri, was quoted by the
official Pars news agency as saying his nation's main objective of the
war was to oust Iraqi President Saddam Hussein and his regime ''so
that both people could rebuild their economies.''
    The news agency said Fakuri described as ''miraculous'' the
performance of Iran's U.S.-equipped air force, which he personally
commands. But it quoted him as saying Iran would never ''compromise''
with the United States to get spare parts and military hardware for
the war effort.
    Pars said Abadan, a city of 350,000 in Iran's southwestern oil
province of Khuzistan, was under a ''murderous'' Iraqi artillery
barrage that killed four soldiers and wounded 41.
    Abadan, on the eastern coast of the Shatt al-Arab border waterway,
Iraq's only outlet to the sea, provided 60 percent of Iran's pre-war
fuel needs. Its biggest refinery in the Middle East has been damaged
severely by Iraqi air raids.
    Pars said Abadan's defenders staged ''suicide grenade-throwing
forays'' into Iraqi positions, killing 50 men in attempts to weaken
the two-month-old Iraqi siege.
    Long-range artillery from Abadan, backed by helicopter gunships,
''rained shells'' on the Iraqi terminal at Fao, 35 miles south of
Abadan on the mouth of Shatt al-Arab, keeping the massive oil pipeline
terminal on fire, Pars added.
    A Baghdad communique said rocket-firing Iraqi helicopters killed 35
Iranians in Abadan and set other sections of its refinery on fire. It
said Iraqi gunboats sank an Iranian navy vessel off Fao.
    Both Iran and Iraq reported their paratroopers locked in running
battles for the strategic foothills of the Zagros mountain range
commanding the closest highways from Iran's western border to Baghdad,
the Iraqi capital 100 miles to the west.
    Pars claimed 40 Iraqi troops killed in the highlands of the northern
sector of the 300-mile-long warfront. Iraq claimed 13 Iranian death
there.
    Iraq has resumed oil exports by pipeline by way of Mediterranean
terminals in Syria and Turkey and industry sources say the exports
average 800,000 barrels a day, about one-fourth of its pre-war rate.
Oil Minister Tayeb Abdul Karim said Monday that Iraq plans to boost
exports through both pipelines to 2 million barrels a day.
    Iran has been shipping up to 100,000 barrels a day from its Lavan
Island terminal at the mouth of the Persian Gulf, 240 miles south of
the main loading faci has been heavily bombed by
Iraqi jets.
    Iran' exports averaged between 750,000 and 900,000 barrels a day
before the war. The Iranian parliament has passed a law allowing
imports and exports through the neighboring Soviet Union in order to
beat the import-export difficulties posed by the war and the U.S.
economic embargo, Pars said.
    
ap-ny-12-08 1526EST
**********

a222  1248  08 Dec 80
AM-War Rdp, Bjt,670
Oil Centers Pounded, Coup Reported 'In Process' in Iran
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran and Iraq claimed they hammered each
other's oil centers Monday and a warning was sounded in Tehran of an
attempt to overthrow the Islamic revolutionary regime of Ayatollah
Ruhollah Khomeini.
    War communiques reported the giant oil refining complex of Iran's
beleaguered city of Abadan on fire from new Iraqi artillery
bombardment and helicopter gunship raids. Iraq's main Persian Gulf oil
terminal of Fao also was reported ablaze from reciprocal Iranian
attacks on the 78th day of the war.
    ''The people of Iran must know that a dangerous coup d'etat is in
process to destroy this regime,'' said parliament member Ali Agha
Mohammad at a parliamentary session. He called on the people, army and
lawmakers to close ranks. His remarks were broadcast by Tehran Radio
and monitored in Beirut.
    He did not explain what he meant by a coup ''in process,'' but
indicated counter-revolutionaries might be capitalizing on a current
power struggle between moderates backing Iranian President Abolhassan
Bani-Sadr and clergy-led radicals supporting Prime Minister Mohammad
Ali Rajai.
    Both Iran and Iraq have been calling for the overthrow of the
other's regime. Although both are Moslem nations, Iran's 36 million
people are predominantly Persian, Iraq's 13 million are Arab. The
animosity and border conflicts between the two nations date back to
the early days of Islam.
    Iran's defense minister, Col. Javad Fakuri, was quoted by the
official Pars news agency as saying his nation's main objective of the
war was to oust Iraqi President Saddam Hussein and his regime ''so
that both people could rebuild their economies.''
    The news agency said Fakuri described as ''miraculous'' the
performance of Iran's U.S.-equipped air force, which he personally
commands. But it quoted him as saying Iran would never ''compromise''
with the United States to get spare parts and military hardware for
the war effort.
    Pars said Abadan, a city of 350,000 in Iran's southwestern oil
province of Khuzistan, was under a ''murderous'' Iraqi artillery
barrage that killed four soldiers and wounded 41.
    Abadan, on the eastern coast of the Shatt al-Arab border waterway,
Iraq's only outlet to the sea, provided 60 percent of Iran's pre-war
fuel needs. Its biggest refinery in the Middle East has been damaged
severely by Iraqi air raids.
    Pars said Abadan's defenders staged ''suicide grenade-throwing
forays'' into Iraqi positions, killing 50 men in attempts to weaken
the two-month-old Iraqi siege.
    Long-range artillery from Abadan, backed by helicopter gunships,
''rained shells'' on the Iraqi terminal at Fao, 35 miles south of
Abadan on the mouth of Shatt al-Arab, keeping the massive oil pipeline
terminal on fire, Pars added.
    A Baghdad communique said rocket-firing Iraqi helicopters killed 35
Iranians in Abadan and set other sections of its refinery on fire. It
said Iraqi gunboats sank an Iranian navy vessel off Fao.
    Both Iran and Iraq reported their paratroopers locked in running
battles for the strategic foothills of the Zagros mountain range
commanding the closest highways from Iran's western border to Baghdad,
the Iraqi capital 100 miles to the west.
    Pars claimed 40 Iraqi troops killed in the highlands of the northern
sector of the 300-mile-long warfront. Iraq claimed 13 Iranian death
there.
    Iraq has resumed oil exports by pipeline by way of Mediterranean
terminals in Syria and Turkey and industry sources say the exports
average 800,000 barrels a day, about one-fourth of its pre-war rate.
Oil Minister Tayeb Abdul Karim said Monday that Iraq plans to boost
exports through both pipelines to 2 million barrels a day.
    Iran has been shipping up to 100,000 barrels a day from its Lavan
Island terminal at the mouth of the Persian Gulf, 240 miles south of
the main loading facility at Kharg, which has been heavily bombed by
Iraqi jets.
    Iran' exports averaged between 750,000 and 900,000 barrels a day
before the war. The Iranian parliament has passed a law allowing
imports and exports through the neighboring Soviet Union in order to
beat the import-export difficulties posed by the war and the U.S.
economic embargo, Pars said.
    
ap-ny-12-08 1548EST
**********

a227  1336  08 Dec 80
AM-Iran-Hostages, Bjt,740
Iranian Leader Says New Reply On Hostages Takes ''Clear Steps''
Laserphoto TEH1,2
    BEIRUT, Lebanon (AP) - The latest American response in the
U.S.-Iranian hostage crisis takes clearer steps in carrying out Iran's
demands, the speaker of Iran's Parliament said on Monday. That
optimistic statement from a leader known to be a hardliner on the
issue raised hopes that Iran generally accepted the U.S. position.
    In Washington, State Department spokesman John H. Trattner declined
comment on the statement and said the Carter administration is still
waiting to hear officially from Iran.
    The U.S. clarification of its first answer ''has come closer to
solving the problem,'' Hashemi Rafsanjani told a news conference in
Tehran on the 401st day of captivity for the 52 Americans.
    ''In the past the U.S. has accepted our demands in principle,'' he
told reporters. ''But this time it has taken more clear steps in
executing them.''
    Rafsanjani did not give details of the U.S. response but said ''I
think that if the U.S.A. has no ill intentions and really wishes to
solve the question it will be solved,'' according to a Terhan radio
broadcast monitored here.
    One prominent Iranian legislator who said he had not seen the
American letter but had heard about it took a different view, saying
the second reply was less positive than the first one. Mohammad
Khameini, in a telephone interview from Tehran, also said he thought
Rafsanjani was referring in his news conference to the first U.S.
response, not the second.
    But Rafsanjani's comments seemed clearly directed at the new
American reply, delivered to Tehran on Thursday by Algerian diplomatic
intermediaries.
    The Parliamentary leader's assessment came just one day after Behzad
Nabavi, head of the Iranian commission studying the hostage issue,
said the new word from Washington was favorable to Iran.
    Asked about a Nabavi statement that the issue would be returned to
the Majlis if the United States accepted some of the four conditions
and rejected others, Rafsanjani replied:
    ''We (the Majlis) have given our final opinion about the hostages. I
do not think that the subject will return. If the U.S. meets our
demands, and it seems that they want to, the problem will be
settled.''
    Rafsanjani stressed that the original U.S. reply was vague in
answering the conditions adopted Nov. 2 by the Parliament, or Majlis.
But there were few unanswered questions in the new message which has
been under study for several days, he said.
    ''The U.S. has moved forward in executing our demands and the rights
that we have claimed,'' he said.
    His remarks were the most positive indication to date that a
solution to the hostage crisis might be at near. In ruling out further
study by the Majlis, Rafsanjani appeared to clear the way Prime
Minister Mohammad Ali Rajai's government to act on its own.
    ''There is little that is unclear,'' Rafsanjani said. ''The
commission is studying the response of the U.S. and naturally it will
announce its view.''
    Khameini, the legislator whose comments differed so markedly from
Rafsanjani's, said in the telephone interview on Monday ''if any
question come up which needs Majlis consultations then naturally the
case will come to the Majlis again and the issue will be clarified.''
    The difference in their statements may have been due to a
misunderstanding but as speaker of the Majlis, Rafsanjani's assessment
would appear to take precedence. Khameini was a member of the
parliamentary committee that drafted the conditions for the hostage
release.
    Those conditions are: that the U.S. government return the wealth of
the late Shah Mohammad Reza Pahlavi and his closest relatives, drop
lawsuits against Iran, release $8 billion in Iranian assets frozen in
U.S. banks and pledge not to interfere in Iran's affairs.
    Informed sources said the latest U.S. message contained no objection
to the non-interference pledge and unfreezing the assets, and offered
assistance in fighting the legal claims against Iran and help in
locating the whereabouts of at least some of the shah's fortune.
    Nabavi, in an interview in Tehran on Sunday with Greek television,
said the hostages were in good health and soon would be transferred to
the custody of the government. The militants who captured the U.S.
Embassy in Tehran on Nov. 4, 1979, have said they scattered the
Americans around the country after a failed U.S. attempt to rescue
them last April.
    Nabavi refused to state their location, saying only they had to be
rounded up from several points.
    
ap-ny-12-08 1637EST
**********

a238  1516  08 Dec 80
AM-Iran-Hostages, 1st Ld-Writethru, a227,600
Eds: Updates throughout. Parliament speaker says U.S. has come 'much
closer' to meeting demands and crisis will be settled.
Precede BEIRUT
By The Associated Press
    The speaker of Iran's parliament said Monday the United States had
come ''much closer'' to meeting demands for release of the American
hostages and he thinks the 13-month-old crisis ''will be settled.''
    Hashemi Rafsanjani told a news conference in Tehran the latest U.S.
response to Iran's four conditions for release of the 52 hostages
held for 13 months ''has come much closer to solving the problem.''
    ''If the United States meets our demands, and it seems that they
want to, the problem will be settled,'' he said. ''In the past, the
United States has accepted our demands in principle but this time it
has taken more clear steps in executing them.''
    Rafsanjani also ruled out a further study of the matter by the
Majlis, the Iranian parliament, as suggested earlier by Executive
Affairs Minister Behzad Nabavi, who heads the government commission
studying the issue.
    ''We (the Majlis) have given our final opinion about the hostages,''
he said. ''I do not think that the subject will return.''
    Rafsanjani's comments represent the most positive indication to date
that a solution to the hostage impasse might be in the works. Nabavi
said Sunday the U.S. position - delivered last Thursday by Algerian
diplomats - was more favorable to Iran.
    ''There is little that is unclear,'' Rafsanjani said. ''The
commission is studying the response of the United States and naturally
it will announce its view.''
    Algerian diplomats in Tehran, who have been acting as intermediaries
at Iran's request, said they had no statement to make but indicated
they were continuing to work on the issue. A spokesman said the
Algerian delegation could remain in Tehran several more days.
    In Washington, State Department spokesman John Trattner declined to
commment on the statement and said the Carter administration was
still waiting to hear officially from Iran.
    Rafsanjani said the first U.S. reply was vague in addressing the
demands adopted by the Majlis on Nov. 2, but there were few unanswered
questions in the latest response.
    ''The United States have moved forward in executing our demands and
the rights that we have claimed,'' he said.
    The four conditions are return of the wealth of the late Shah
Mohammad Reza Pahlavi and his family, unfreezing Iranian assets in
U.S. banks, dropping pending U.S. lawsuits against Iran and a pledge
not to interfere in Iranian affairs.
    Informed sources said the latest U.S. response contained no
objection to the non-interference pledge and unfreezing the assets,
and offered assistance in fighting the legal claims against Iran and
help in locating the whereabouts of at least some of the shah's
fortune.
    Rafsanjani had previously adopted a hard line on the hostage
question and his optimistic assessment of the situation was the first
indication that the revolutionary government might be ready to accept
the U.S. explanation.
    There has been no other official government reaction to the latest
U.S. reply although an aide to Prime Minister Mohammad Ali Rajai said
during the weekend that Iran would not take long in announcing its
decision.
    One prominent Iranian legislator who said he had not seen the
American letter but had heard about it said the second reply was less
positive than the first one. Mohammad Khameini, in an interview in
Tehran by telephone to Beirut, Lebanon, also said he thought
Rafsanjani was referring in his news conference to the first U.S.
response, not the second.
    But Rafsanjani's comments seemed clearly directed at the new
American reply.
    
ap-ny-12-08 1817EST
**********

n999  1526  08 Dec 80
. . .
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AM-IRAAFSANJANI Says Hostage Crisis Closer to Solution
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN - The speaker of the Iranian Parliament said Monday night
that the 13-month old crisis over the U.S. Embassy hostages ''is now
much closer to being solved.''
    As Iranian officials spent a fifth day considering the latest
version of the U.S. reponse to its four demands for the freeing of
the hostages, Hojatoleslam Rafsanjani said on the state television
''the matter is much more clear now.''
    ''The United States has, to an extent, clarified its position and it
is now much closer to being solved,'' Rafsanjani said. ''I think that
if the United States has good will and if it truly wants to solve the
matter, it will be solved.''
    Earlier in the day, Rafsanjani told a news conference that the new
American response had ''almost made it clear that it is ready to meet
these demands.''
    The relatively straightforward and consistent statements made by the
speaker - and the lack of the usual bombastic rhetoric - appeared to
raise some hopes of the possibility of working out the release of the
hostages, Monday in their 401st day of captivity. Such hopes have
repeatedly been dashed in the past, however.
    A three-man Algerian delegation brought the latest U.S. message here
Thursday, after meeting with Deputy Secretary of State Warren M.
Christopher in Algiers, and are waiting here to bring back the
Iranian reply.
    The conditions laid down by the Parliament on Nov. 2 were that the
United States should pledge not to interfere in the Iran's internal
affairs; that a government-imposed freeze on an estimated $8 billion
in Iranian assets be ended; that all American law suits against Iran
be abrogated and that the wealth of the late shah be returned.
    While none of the American responses has been made public, the
Carter administration is understood to have said that while it has
agreed to the conditions ''in principle'' it faces constitutional and
legal barriers to carrying out the last two. These problems were
spelled out in an 80-page brief sent earlier through the Algerians.
    The latest message is believed to contain a warning that if the
Iranians wait until the incoming Reagan administration takes office
on Jan. 20, there will be even further delays as the new government
gets organized.
    Diplomatic and political observers here believe that the powerful
clerical faction of the revolutionary leadership - which holds the
key to the hostages' fate - would now like to see them released.
    After having used the hostages as an issue with which to hammer the
rival liberal, Westernized group and to undermine President
Abolhassan Bani-Sadr for more than a year, this line of reasoning
goes, the Islamic fundamentalists now find the hostages serve little
purpose.
    With the Majlis decision, the clerical forces effectively accepted
responsibility for the hostages and are soon to take actual custody.
    Thus, they can no longer attack Bani-Sadr for attempting to make
deals with the Americans to let them go. And, if anything, the
hostages now seem a negative factor, for it is beginning to be
perceived that they have contributed to an isolation of Iran that is
hampering its war effort against Iraq.
    But there are difficulties. Having made such an issue of the
hostages in the past, the clerics must find a face-saving way out of
the impasse or risk losing their credibility.
    And, within the clerical group there are many - whose political
experience is limited to the absolute monarchy that prevailed here
before the revolution - who find that President Carter's
protestations of constitutional and legal limits an alien concept
they simply cannot believe. Already deeply suspicious of America,
they are prone to suspect this is merely an attempt to evade their
demands.
    The original demand of the militants who seized the embassy on Nov.
4, 1979 - that the deposed shah be returned - is now moot, because
the shah has since died.
    The hostage situation is in the hands of a parliamentary committee
headed by Behzad Nabavi, the minister of state for executive affairs.
    Nabavi, a 38-year-old electrical engineer who was a jailmate of
Prime Minister Mohammed Ali Rajai under the shah's regime, has
emerged in recent weeks as the prime minister's chief aide and a key
day-to-day figure among the fundamentalists.
    Persons who have spoken to Nabavi in the past few days say they have
found him optimistic about a settlement of the hostage issue.
    Rafsanjani said at his news conference that Nabavi ''has informed
the Majlis that the recent American reply is relatively clear.''
    ''There are a few obscure points,'' he added, however.
    ''The commission is studying the American reply and naturally will
announce its view,'' the speaker said.
    ''I have said the reply is more clear than before. In the past,
America accepted our four conditions in principle and this time it
has made clear steps in implementing them,'' Rafsanjani said, adding:
''In our view it has gotten further toward a solution.''
    ''It has made some advance in the implementation of our demands,''
he went on. ''This time it has virtually made it clear that it is
ready to meet our demands.''
    ''There are still some questions, but as far as I know it (America)
has made more advance than before,'' he said.
    Asked if the matter of the hostages might be referred back to the
Majlis, Rafsanjani said, ''We have given our final view about the
hostages. If, as it seems, the Americans give us all we ask, the
problem can be finished and there is no need to go back to the
Majlis.''
    
nyt-12-08-80 1825est
**********

n999  2048  08 Dec 80
. . .
ixx ny
a107
r i zvtczceev
BC-OPECNEWS Undated
By JONATHAN FRIENDLY
c. 1980 N.Y. Times News ServiceA news agency established and
financed by the Organization of Petroleum Exporting Countries to
publicize news about OPEC has begun operation, with its reports being
sent to 340 daily newspapers and other news organizations around the
world, according to the head of the month-old agency.
    The official, Gonzalo Plaza, said in a telephone interview from his
offices in the OPEC secretariat in Vienna that news organizations,
and particularly the trade journals covering oil, were beginning to
make use of the agency's 1,000-word daily report, giving the OPEC
countries a direct voice they never had before.
    He said the OPEC News Agency, while not independent of the13 member
countries, was trying not to be a public relations office but rather
a reliable source of information in areas of energy, development and
economics.
    The move by OPEC to operate a news agency follows long-standing
protests by third-world countries that they do not get fair coverage
in the press dominated by Western powers, and that a ''new world
information order'' must be developed to give them a more direct
access to world opinion.
    Western journalists have argued against such a system, which they
say would establish governmental control over the activities of
journalists and the flow of news.
    Plaza, 49, was postmaster general of Venezuela and then chief editor
of the English-language Daily Journal in Caracas, said OPEC had spent
$800,000 since July to start the news agency.
    The service is distributed free to many of the world's major
newspapers, including The New York Times, and radio and television
networks in the United States. Some of these news organizations use
it more as a ''tip service'' than as a regular news agency.
    He said third-world papers, particularly in India and South America,
had been publishing the report directly while Western reporters were
using it for background information.
    Echoing comments from other reporters, Roz Liston, an energy
reporter with United Press International in New York, said she looked
at the service for tips and ''once or twice a week we get an item
worth using.'' She said the report was ''not as ideologically
oriented as I had expected,'' but noted it had been silent on major
issues such as the Iraq-Iran war or internal dissension among OPEC
members.
    The agency's report is distributed by U.P.I. in North America, a
number of Western European countries and Japan and Korea among
others, appearing in newsrooms on the same machines as those used for
the news reports of the wire service. The Reuters news agency
distributes the report in Britain, India and Africa, among other
countries, while a number of third-world countries get the report
through Interpress Service of Rome.
    The Associated Press did not submit a bid on the project.
    Eugene H. Blabey, vice president and general manager for the UPI in
Europe, Africa and the Middle East, said the wire service was simply
acting as ''the mailman,'' being paid to distribute the OPEC News
Agency report from Vienna to clients who had agreed to accept it. He
said the UPI was paid on a wordage basis, but he and Plaza declined
to give a specific figure.
    Blabey said the UPI exercised no editorial control over the agency's
material, like other reports that the UPI distributes for the
national news agencies of West Germany, Italy, Spain and Poland,
among others. He said that because of the way the material was
marked, there was no possibility that news organizations would
confuse it with the product of independent news reporters.
    
nyt-12-08-80 2347est
**********

a077  0546  09 Dec 80
PM-War Rdp,500
Report Iraq's Oil Terminals Bombed
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran said its jets bombed and burned Iraq's
two major oil loading terminals at the northern flank of the Persian
Gulf today. Iraq said it crushed an enemy counter-attack aimed at
breaking a two-month-old siege of Iran's burning oil city of Abadan,
killing 420 Iranians.
    Iran's official Pars news agency claimed 200 Iraqi troops were
killed and 12 captured in fighting at the refinery city of Abadan,
blunting an Iraqi tank-led advance across the Bahmanshir River bridge
to storm into the beleaguered city from its northeastern outskirts.
    Baghdad radio said Iraqi helicopter gunships rocketed Abadan's giant
oil refining complex on the eastern bank of the embattled Shatt
al-Arab waterway at daybreak, setting new fires in the facility that
provided 60 percent of Iran's needs before Iraq invaded Sept. 22.
    The helicopter strike was reported a few hours after a communique
from the Iraqi command said an Iranian counterattack to break Abadan's
siege was ''crushed and the enemy put to flight in chaos.''
    Iran's high command said in a communique broadcast by Tehran radio
that fighter-bombers blasted the oil jetties at the Iraqi terminals of
Mina al-Bakr and Khor al-Amaya 12 miles offshore, south of Iraq's
southernmost pipeline terminal of Fao at the mouth of the Shatt
al-Arab.
    Pars said the giant piers that handled most of Iraq's 3.2 million
barrel a day exports before the war began were in flames as a result
of the new air strikes in Mina al-Bakr and Khor al-Amaya.
    Western reporters taken on an Iraqi tour of the Fao area on Sunday
said damage appeared considerably less than either side claimed had
occurred to bombed oil facilities on both sides of Shatt al-Arab.
    Iran claimed 10 days ago that Mina al-Bakr was ''completely
destroyed'' by Iran's navy in the heaviest sea battle of the war. Iraq
denied the claim.
    Industry sources say Iraq's oil exports have dropped to about
one-quarter of their level before the war broke out. They said Iraq
now exports 800,000 barrels a day via pipelines to the Mediterranean,
and that the exports bring in about $25.6 million daily, compared
with $102.4 million a day before the war.
    Today was the 402nd day in captivity for the 52 American hostages in
Iran. On Monday, the speaker of Iran's Parliament, Hashemi
Rafsanjani, said the U.S. government has come ''much closer'' to
meeting the ransom demands and that he thought the crisis ''will be
settled.''
    The conditions are a U.S. pledge not to interfere in Iran's affairs,
dropping U.S. lawsuits against Iran, releasing $8 billion in Iranian
assets frozen in U.S. banks and returning the wealth of the late Shah
Mohammad Reza Pahlavi and his closest relatives to Iran.
    Informed sources said the latest U.S. response contained no
objection to the non-interference pledge and unfreezing the assets,
and offered assistance in fighting the legal claims against Iran and
help in locating the whereabouts of at least some of the shah's
fortune.
    
ap-ny-12-09 0847EST
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n999  1014  09 Dec 80
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BC-COPTER 2takes
By WILLIAM ROBBINS
c. 1980 N.Y. Times News Service
    WILMINGTON, Del. - Witnesses and depositions in a civil case here
have attacked the reliability of a warning system of the kind that
grounded a helicopter vital to the American rescue mission in Iran.
Some of the witnesses have suggested in interviews that a false alarm
may have been partly responsible for aborting the rescue effort.
    The mission last April began with eight helicopters assigned to
carry 90 Army commandos from a rendezvous in the Iranian desert to
Tehran, the capital, where the American hostages were being held. A
minimum of six helicopters were considered necessary to proceed, and
the mission was canceled after three helicopters developed problems,
including one that was landed by its pilot because two flashing
lights warned of possible rotor-blade failure.
    The reliability of a crucial element in the system that gave the
warning is a central issue in the case in State Superior Court here.
The case is not directly related to the Iran rescue mission but
involves a helicopter similar to those used by the American raiding
party.
    The plaintiffs are relatives of four persons who died Jan. 8, 1975,
when a Marine Corps helicopter crashed near Salisbury, Md. Both sides
agree that the crash was caused by a broken rotor blade. The
plantiffs assert that the manufacturer designed and produced an
unreliable warning system and a rotor blade subject to sudden failure.
    The defendant, the United Technologies Corp., has not yet presented
its arguments, and company officials and their attorneys declined to
discuss the case, saying that doing so would be improper while the
matter was in litigation. Similarly, attorneys for the plaintiffs say
they are prevented by Delaware law from discussing the case outside
court. Neither side has publicly mentioned the Iran mission.
    The helicopter that crashed was a CH-53D, also called a Sea
Stallion, manufactured by the company's Sikorsky Division and used by
the marines as an assault craft. The helicopters used by the rescue
mission were RH-53 sister ships adapted by the Navy for longer-range
minesweeping missions.
    Attacks on the reliability of the CH-53D's rotor-blade warning
system have come in five days of highly technical arguments,
depositions offered by the plaintiffs and interviews with witnesses.
    ''In over 95 cases out of a hundred,'' Darrell Heick, an expert
witness, said after testifying, ''there is nothing wrong with the
blade'' when a built-in device signals a danger of a rotor-blade
failure.
    Heick, a civilian engineering supervisor at a naval repair depot in
Pensacola, Fla., said that the Navy's repair facility at North Island
in California, where he formerly worked, receives large numbers of
sound blades for repair because the warning system had signaled
danger of impending fracture in flight.
    ''In most cases,'' Heick said, ''the problem is with the Bim.'' Bim
is an acronym for ''blade inspection method'' commonly used to refer
to built-in warning devices.
    The CH-53D and RH-53 helicopters have similar rotor blades, which
provide lift and propulsion. The blades are hollow and are filled
with pressurized nitrogen gas, which is the crucial element in their
warning systems.
    Both versions are designed to produce a reading on an indicator in
each rotor blade in the event of a loss of nitrogen pressure such as
might result from a blade crack. The signals can be checked only when
the helicopter is on the ground. In addition, the RH-53 has an
electrical system designed to warn pilots with flashing lights of a
loss of nitrogen pressure in the blades in flight.
    A problem with the system, according to witnesses and depositions,
is the number of false alarms when pressure drops for reasons other
than blade cracks. Several fittings on the blades can leak, causing
pressure drops, and a sharp drop in temperatures can have the same
effect. Both causes could set off alarms. In addition, Heick
testified, the indicators themselves frequently malfunctioned.
    Moreover, he testified, the electrical system that provides
in-flight warnings to RH-53 pilots was subject to ''false warnings to
the extent that pilots were starting to ignore the warnings.''
(MORE)
    
nyt-12-09-80 1313est
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n999  1030  09 Dec 80
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BC-COPTER 1stadd
NYT WILMINGTON: the warnings.''
    Since the late 1960s, Heick said outside the courtroom, only ''35 or
so'' Sea Stallion rotor blades had developed cracks, but there had
been ''thousands upon thousands'' of false alarms. Three of the
helicopters are known to have crashed as a result of blade failures
in that period, evidence presented here showed.
    Maintenance crews use a special gauge to test blade pressures and
check on the warnings from the indicators, according to evidence
presented here, but such a test would indicate only whether pressure
had been lost, not the reason. As a result, depositions showed,
flight crews often applied saliva or other liquids to fittings to
determine whether they were leaking.
    The indicator on the blades is white when nitrogen pressure is
adequate and black when it is not. So cavalier had flight crews
become about black indicators that the helicopter that crashed in
Maryland had continued to fly without blade changes, according to the
evidence, despite repeated danger signals.
    In a deposition, Sgt. Thomas E. Meadows, a crew member of another
Marine helicopter who had flown in the Sea Stallion just before it
crashed, said, ''At that time, we had had a rash of bad Bim
indicators.''
    A former corporal, Nicholas Kern of Wallingford, Conn., a crew
member who gave up his seat to another sergeant on the day of the
fatal crash, told in his deposition of repeated instances of ''black
Bim's.''
    Current procedures call for replacement of the blade without further
testing whenever an indicator turns black.
    The electrical system, which transmits warnings through wiring,
introduces another source of possible error, Heick testified.
    A second witness, Capt. Thomas Treurniet, a Marine pilot, after
testifying that he relied on the Bim system to tell him whether a
helicopter was safe to fly, said in an interview that his fellow
pilots had complained frequently of false warnings. And, speaking of
the electrical system, he said: ''The Marines didn't want it. It's
just another source of error. It's a bad system. It's a cheap
system.''
    And, speaking of the helicopter abandoned in Iran, he said: ''If you
want my opinion, personally I think there was probably nothing wrong
with that helicopter.''
    When that helicopter landed, after warning lights went on, the crew
checked the indicators on the blades and found a danger signal,
according to the Defense Department. Both systems appeared to reflect
a loss of nitrogen pressure. Neither, however, could show whether the
cause was a relatively rare blade crack or whether a false alarm was
responsible for dooming the rescue mission. Because the helicopter
was abandoned in the desert, the answer may never be known.
i
    
nyt-12-09-80 1328est
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a226  1213  09 Dec 80
BC-NAT0-Aircraft,290
URGENT
    BRUSSELS, Belgium (AP) - North Atlantic alliance sources said
Tuesday that NATO defense ministers requested the dispatch to Western
Europe of four sophisticated U.S. surveillence aircraft in connection
with the Polish crisis.
    The sources, who refused to be further identified, said the request
to the United States was expected to be honored and that the
airplanes probably would be on their way within 24 hours. There was no
immediate Pentagon comment.
    The airplanes are known as AWACS, Airbourne Warning and Control
Systems.
    In addition to the four AWACS, there would be two refueling tanker
airplanes and they would operate out of U.S. facilities at Ramstein
Air Force Base, West Germany, the sources said.
    The sources said that the AWACS w9uld be on an ''exercise'' and
accepted speculation that the planes would be sent here in the context
of fears that the Soviet Union may intervene militarily in Poland.
    The sources said that the request was made initially by Gen. Bernard
Rogers, supreme allied commander for Europe, and that it was
discussed and approved by NATO defense ministers.
    It was stressed by the informants that the AWACS, which are unarmed
aircraft, play a purely defensive role. In their present situation
the planes would mainly be used for detection of any unusual movement
of Soviet or Warsaw Pact planes.
    The AWACS are converted Boeing 707 jets equipped with a Westinghouse
radar system. The sources said that upward of 400 U.S. support
personnel would be involved to keep the planes flying over an
indefinite period of the ''exercise.''
    The operation would be financed by the United States, the sources
said.
    Two AWACS were sent to Saudi Arabia to monitor the Iran-Iraq war, to
help keep the Saudis informed of military movements in the Persian
Gulf region.
    
ap-ny-12-09 1513EST
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a236  1320  09 Dec 80
AM-Iranian Tanks,110
    AMMAN, Jordan (AP) - Iraq on Tuesday gave Jordan 50 U.S.-made M-50
tanion showed King Hussein of Jordan inspecting the tanks,
some of which, it said, were now inside Jordanian territory.
    It said Hussein thanked Iraqi President Saddam Hussein and the Iraqi
mission which delivered the tanks to Jordan.
    Hussein, in his address said: ''this tank division will be added to
the Jordanian armored regimthe Arab world,'' the
state-run television reported.
    Hussein was the first Arab leader to voice open support for Iraq in
its war against Iran.
    
ap-ny-12-09 1621EST
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a245  1440  09 Dec 80
AM-Brezhnev, Bjt,660
Defends Soviet Presense in Afghanistan
By GENE KRAMER
Associated Press Writer
    NEW DELHI, India (AP) - Soviet President Leonid I. Brezhnev told
Indian Prime Minister Indira Gandhi on Tuesday that Moscow has noted
''a certain normalization'' in Afghanistan, according to Brezhnev's
spokesman. But the justification for keeping Soviet troops there is
stronger than ever because of alleged American escalation of tension,
the spokesman said.
    ''Mr. Brezhnev said at present we can note a certain normalization
of the situation in Afghanistan . . . despite attempts of organizers
of outside intervention to prevent this,'' spokesman Leonid Zamyatin
said in a report to journalists on Brezhnev's two-hour summit talk
with Mrs. Gandhi.
    The summit came on the second day of Brezhnev's state visit to
India, a country whose traditionally good relations with Moscow have
been strained by the Soviet military presence in nearby Afghanistan.
    Zamyatin said, ''We are not planning to introduce any new troops
into Afghanistan - if reason prevails among those organizing
intervention and they decide to seek a political settlement.''
    But, he asserted, ''Some states, first of all the U.S.A., are
insisting that we discontinue military assistance to Afghanistan while
at the same time they are doing everything to complicate and
procrastinate a political settlement.''
    The United States has denied providing any substantial aid to
anti-communist Moslem guerrillas fighting Afghan government forces and
the estimated 85,000 Soviet soldiers in Afghanistan.
    Zamyatin said the Afghan government asked for military help because
of American and Western intervention in the central Asian nation.
    ''Whenever the reasons the government of Afghanistan had to ask for
Soviet assistance disappear, there will be no further need for a
Soviet military presence,'' he said. ''But as you know, these reasons
are not vanishing. On the contrary they are becoming more intense.''
    Indian spokesman J.N. Dixit said Mrs. Gandhi emphasized the
principle of non-intervention. ''Regardless of circumstances . . .
India does not condone foreign interference in the domestic affairs by
one country of another,'' the spokesmen said.
    Soviet forces entered Afghanistan last December, ousted the Marxist
regime of the late President Hafizullah Amin and installed the
current Afghan president, Babrak Karmal.
    Zamyatin denied Afghanistan is an occupied country, declaring that
occupation is ''a fantasy believed only by those still sitting in the
White House, of course I have in mind only the advisers.''
    Zamyatin's attack on President Carter's advisers was followed by a
less hostile remark about the incoming administration of
President-elect Ronald Reagan. He told an American reporter he was
reluctant to name the country interfering in Afghanistan because,
''You are going to have a new administration soon.''
    Zamyatin said Moscow stands by the Karmal government's proposal of
last May for negotiations with Iran and Pakistan on ending alleged
outside interference. Under the proposal, any agreement would be
guaranteed by the United States and the Soviet Union.
    Afghanistan's neighbors have refused to negotiate with the Karmal
regime.
    Zamyatin cited Moscow's security interest in having a friendly
government in Kabul, the Afghan capital. ''We are definitely against
the appearance on our southern border of a state that would be hostile
to us,'' he said.
    Mrs. Gandhi told Brezhnev publicly as well as privately Tuesday that
India opposes interference in this region.
    ''We sincerely hope that independence, sovereignity, territorial
integrity and non-aligned status of the countries in the region will
not come under strain or jeopardy through conflict and interference,''
she said at a gathering in Brezhnev's honor.
    The Soviet leader did not mention Afghanistan in his speech at the
event which, for security reasons, was changed from an outdoor mass
rally at Delhi's Red Fort into an invitation-only affair in an indoor
conference hall.
    Indian officials said the switch was made on Soviet advice because
of the presence of militant Afghan exiles in the city.
    Brezhnev and Mrs. Gandhi plan to sign a joint policy declaration
Wednesday and a documment making final their 1981-1985 long-term trade
plans. They also plan to sign cultural and technological cooperation
agreements.
    The Soviet leader was to return to Moscow on Thursday.
    
ap-ny-12-09 1741EST
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n999  1531  09 Dec 80
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BC-POLAND-NATO
U.S. Will Send NATO Surveillance Planes to Monitor Soviet Activity
By JOHN VINOCUR
c. 1980 N.Y. Times News Service
    BRUSSELS - The United States will supply NATO by the end of the week
with surveillance aircraft to counter the possibility of a surprise
air attack on Western Europe growing out of a Soviet move on Poland,
NATO sources said Tuesday night.
    The sources said the request for the aircraft, called Awacs, was
made by Gen. Bernard Rogers, the supreme allied commander, Europe,
and approved by North Atlantic Treaty Organization defense ministers
meeting here Tuesday. Four surveillance planes and two tanker
aircraft that can refuel them in flight were expected to arrive at
the U.S. Air Force Base at Ramstein in West Germany in three or four
days.
    Officially, the aircraft will participate in exercises. By flying
near the East German border, they can monitor activity about 250
miles into East Germany and, in theory, provide advance warning of an
air attack. If continuously refueled, the aircraft could remain
flying 24 hours a day.
    Awacs aircraft currently monitor activity in the North Atlantic from
the U.S. base at Keflavik in Iceland. Other Awacs aircraft, a
modified Boeing 707, have been transferred to Saudi Arabia to oversee
the situation in the Gulf since the outbreak of the Iran-Iraq war.
    The chairman of the Atlantic Alliance's military committee reported
to NATO defense ministers Tuesday that the Soviet Union was now in a
position to move into Poland so quickly that the West might only
learn of it after an invasion had begun.
    ''I'm talking of hours,'' said Adm. Robert H. Falls of Canada,
referring to Soviet capability to launch an attack.
    ''They are in a state of readiness now that they could move in
practically so that we would hear about it almost after the event,''
Falls said.
    The admiral is the temporary chairman of NATO's highest military
policy making group, which brings together the commanders of NATO
forces in Western Europe, the Atlantic, and the ChannelNorth Sea
areas.
    Speaking at a news conference after the three commanders reported on
the general balance of forces between the Allies and the Warsaw Pact,
the admiral said that since the Soviet Union had shown its capability
to move on Poland it would be imprudent for NATO to ignore the
development. ''There are many scenarios in which it could spill over
into the concerns of the NATO countries and thus we shouldn't go on
with business as usual.''
    At the same time, the admiral said, it was ''terribly important that
the alliance does not exacerbate.''
    Beyond the events in Poland, the commander's assessment of the
overall East-West military balance, for the first time involving
separate reports by each officer, was described by a senior U.S.
Defense official as a ''very sobering exercise.''
    The state of the alliance will be discussed here Wednesday by the
member countries' defense ministers, who will be joined on Thursday
and Friday by the alliance's foreign ministers for NATO's semi-annual
top-level meetings.
    The situation on Poland's borders had not changed militarily over
the past 48 hours, the admiral stated, and he described the high
state of Soviet readiness as possibly being ''pretty indefinite. I
don't see them being frozen out at all. I don't see any problem with
the Soviets maintaining their capability for some time.''
    Falls reported that over the past week Soviet forces had heightened
preparations to a level so that for the last three or four days they
could move at any time they chose.
    The preparations, he said, involved bringing understrength
provisions up to full manning levels. At the same time, according to
Falls, conscripts with special skills had not been taken out of
front-line units on normal rotation schedules. Monitored
conversations and detection of special logistics arrangements had
also provided evidence of the high level of readiness, he said.
    East GPolish forces had not been seen outside their
garrisons, but the two Soviet divisions stationed in Poland were at
full readiness, the admiral reported.
    Under the circumstances, the admiral said, NATO decided not to
disband its standing naval force for Christmas leave. This force
groups five vessels from the United States, Canada, West Germany,
Britain and Holland. If the force had been disbanded for the
holidays, as is usually the case, the admiral said, the action might
have been taken by the Soviets as meaning, ''It's not terribly
important what you're doing along the border of Poland.''
    ''But we must react in a way that cannot be construed as interfering
i that there had been discussion
during the ministers' meeting of why some member countries were
having difficulty in meeting their pledges to increase real defense
spending by 3 percent per year. He said that some of the commanders
themselves questioned whether the 3 percent goal is sufficient
considering their concern about what they consider to be the
worsening balance of power.
    The official described the commander's description of the balance
between Western and Warsaw Pact forces as ''a somber set of
appraisals. The threat is increasing, but the allied deterrent has
not kept up.''
    
nyt-12-09-80 1830est
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n999  1639  09 Dec 80
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AM-POLAND-U.S.
Muskie to Attend NATO Meeting to Seek Consensus on Poland Crisis
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Secretary of State Edmund S. Muskie is flying to
Brussels Tuesday night to seek allied agreement on a number of
economic and political moves that would be taken against the Soviet
Union if Soviet military forces intervene in Poland, administration
officials said Tuesday.
    They said that the administration has drawn up a list of contingency
steps in the event of the Soviet intervention, and that Muskie and
President Carter discussed them at length Tuesday prior to Muskie's
departure for the winter meeting of the North Atlantic Treaty
Organization.
    In a related move, Defense Department officials said that four Awacs
radar-surveillance planes were being flown to Europe, to increase
allied ability to monitor the situation in and around Poland. Two of
the planes were already on their way from this country to Ramstein
Air Base in West Germany, and two more accompanied by two tanker
planes are expected Wednesday.
    Four other Awacs were recently sent to Saudi Arabia to bolster that
country's air defenses during the Iran-Iraq conflict. The Awacs are
modified Boeing 707s with a large dish-like radar mounted on top that
enables it to detect activity for hundreds of miles.
    Muskie, after conferring with Carter, briefed the Senate Foreign
Relations Committee behind closed doors, on what he intended to raise
with the allied foreign ministers in Brussels.
    State Department officials said that the United States is not
expecting the allies to argue formally to the steps contemplated by
the United States at this time, but rather to listen to the American
presentation and indicate general backing.
    The contingency steps are said to include:
    - If a Soviet intervention takes place while the Madrid East-West
review conference on security and cooperation was taking place, the
allies should consider using that forum to denounce the Soviet Union,
and possibly to walk out of the meeting as a demonstration that
detente cannot be followed in the current circumstances.
    - Make clear to the Soviet Union that it cannot expect to do
business as usual with the United States and Western Europe. In
particular, large-scale projects, involving joint Soviet-Western
cooperation, would not go forward. This would include stopping work
on a natural gas pipeline from the Soviet Union to Western Europe in
which the Caterpillar Corp. is involved in supplying heavy equipment.
    - There should be significant curtailment in political contacts
between Western countries and the Soviet Union, again to demonstrate
the West's displeasure with an intervention into Poland.
    White House officials stressed that Muskie's mission, and follow-up
talks with the allies, would have significant repercussions on future
European-American relations. The Carter administration has made no
secret of its disappointment with the relatively mild reaction of
many allies to the Soviet military intervention into Afghanistan a
year ago.
    While the United States cut back relations with Moscow to the
minimum over Afghanistan, most of the major European countries
continued business as usual.
    Under severe American pressure, West Germany and some others
boycotted the summer Olympics in Moscow and took some steps not to
increase credits to Moscow or to substitute their products for those
banned by the U.S., but on the whole their response was less severe
than Washington's.
    One official said Tuesday ''it will be a time of testing for the
alliance.''
    ''We shall see if we are able to act in concert,'' the official said.
    ''If Afghanistan was too far to be a threat, is Poland too close?
Where will they draw the line? Bonn?''
    For much of the last week, the United States has publicly been
drawing attention to the possibility of Soviet military intervention.
    Tuesday, Muskie and others again said they still have no evidence
that Moscow had taken a decision to send its forces, even in the
guise of military exercises, into Poland. But Tuesday the
administration shifted the focus away from the possibility of
intervention to the need for allied unity in case it takes place.
    ''We obviously hope an intervention does not take place,'' John H.
Trattner, the State Department spokesman said. ''We remain very
seriously concerned about the possibility.''
    ''We are looking now to the meeting of foreign ministers of NATO
this week in Brussels as a forum where the issue will obviously be
taken up and the concerns and views of all the allies will be
aired,'' he said.
    Sen. Daniel P. Moynihan, D-N.Y., predicted that an invasion of
Poland would lead the U.S. to halt the shipment of all grain,
machinery and electronic equipment to the Soviet Union.
    Asserting in a news conference that he had spoken to many members of
the Senate, he said ''we are very much of the view that we are not
going to feed the army that rapes Poland.''
    ''We are not going to guide the missiles that rip through Polish
factories,'' he said.
    As a result of Afghanistan, the U.S. has barred the Soviet Union
from receiving more than 8 million tons of grain yearly, the amount
set by a mutual agreement several years ago. Shipments of some 17
million tons were canceled in the past year.
    
nyt-12-09-80 1937est
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a292  2045  09 Dec 80
BC-Top Ten Because of several late stories, we are conducting a final poll for
the Top Ten stories of the year.
    We have narrowed the list to the 15 top-vote getters in the original
poll, changed the wording on the Polish ballot item to reflect late
developments and added the Italian earthquake and the slaying of John
Lennon. The MGM fire, which was on some ballots and not on others, is
also included.
    We appreciate your cooperation on the first poll. Please vote again
for ten stories, listing them in order, and mail them as soon as
possible to:
 
    Top Ten
    AP Newsfeatures
    50 Rockefeller Plaza
    New York, N.Y. 10020
 
    The AP
 
    Here are the finalists:
 
    ----The U.S election. Reagan wins White House in a landslide,
Republicans gain control of the Senate.
 
    ----The continuing holding of the hostages in Iran; the Iran
situation, including the abortive rescue attempt and the Shah's death.
 
    ----The Iran-Iraq war.
 
    ----The Soviet intervention in Afghanistan and the Western response.
Freeze in East-West relations.
 
    ----The Moscow Olympics. Much of the West boycotts.
 
    ----U.S. hockey team defeats Soviets, wins gold medal.
 
    ----Poland. The strikes, the growth of an independent union movement
and the threat of Soviet intervention.
 
    ----U.S. economy in recession; interest rates soar, auto industry
slumps.
 
    ----Heat and drought in the Southwest and Midwest.
 
    ----Cuban boatlift and the influx of Cuban and Haitian refugees.
 
    ----Mount St. Helens erupts.
 
    ----Race riots in Miami.
 
    ----Abscam nets legislators.
 
    ----Draft registration resumes.
 
    ----Voyager 1 surveys Saturn.
 
    ----The murder of former Beatle John Lennon.
 
    ----Thousands die in earthquakes in southern Italy.
 
    ----MGM Grand Hotel Fire in Las Vegas. 84 die.
 
    The AP
    
ap-ny-12-09 2346EST
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n999  0023  10 Dec 80
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BC-BREZHNEV-12-10
    By Pran Sabharwal
    (c) 1980, The Baltimore Sun (Field News Service)
    NEW DELHI-Soviet leader Leonid Brezhnev warned Indian leaders here
that in no case will Moscow withdraw its troops from Afghanistan
while interference from Pakistan continues, aided by the United
States.
    A spokesman for Brezhnev, L. M. Zamiatin, went a step further and
said later Tuesday that in ''no case will we (the Soviet Union)
tolerate a hostile power on our southern flank,'' thus ruling out any
change in the shape or complexion of the Afghan regime, headed by
Babrak Karmal.
    However, Zamiatin assured angry Indian and Western newsmen that
there will be 'no more introduction of additional troops (already
about 85,000) into Afghanistan.''
    This, the Soviet spokesman said, was because things are returing to
''normal'' there.
    He charged, however, that ''armed bandits'' continue to infiltrate
from Pakisan, aided and abetted by the United States and, almost as
an afterthought he added, ''China.''
    Brezhnev and his entourage, on the second day of their visit, held
their first round of formal talks with Prime Minister Indira Gandhi
and officials Tuesday morning in which matters of bilateral interest
and international affairs were discussed.
    Brezhnev was also given a civic reception in the closed hall of
Vigyan Bhavan instead of the scheduled open-air affair at Delhi's
monumental Red Fort.
    During the talks Brezhnev reportedly told Gandhi that ''militarism
and imperialism'' had triumphed in the U.S. elections and this may
cause greater tension in the world.
    The Soviet president also told Gandhi that the Soviet Union stood by
its ''commitment'' to withdraw its troops from Afghanistan if other
countries - Pakistan, Iran and the United States which, according to
Soviet assessment, was the agent provocateur - agreed to the May 14
proposals put forward by the Kabul government guaranteeing
non-interference in the internal affairs of Afghanistan.
    Brezhnev also said that Kabul had sought Soviet assistance 14 times
in the past two years before Moscow agreed to send in troops.
    For the public record, Gandhi said - without naming Afghanistan -
''We sincerely hope that the independence, sovereignty, territorial
integrity and the non-aligned status of countries in the region will
not come under strain or jeopardy through conflict and interference.''
    In private Gandhi reportedly told Brezhnev bluntly that the Soviet
invasion of Afghanistan has led other countries to introduce massive
military force into the region.
    She said that Soviet occupation of Afghanistan would lead to a
massive arms buildup in Pakistan, which she said poses a threat to
India.
    To assuage her fears, Brezhnev told the citizens at the civic
reception that his country regarded ''strengthening India's defense
capability'' as ''very important.''
    ''We conceal from no one that we wish to see a friendly,
peace-loving India, strong and capable of successfully defending its
independence and promoting the cause of peace in Asia,'' he said.
    To this end it was learned that the Brezhnev visit coincided with
the arrival in Bombay of a number of MiG-16 jets.
    They are to be assembled at Nasik and test flown soon.
    The Soviet spokesman, Zamiatin, said in private after the official
briefing that the White House has gotten ''hysterics'' every month
for the past three years.
    ENDIT SABHARWAL
    
nyt-12-10-80 0322est
**********

a053  0356  10 Dec 80
PM-War Rdp,330
Iran Gunboats Destroy Bridge
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian gunboats attacked an Iraqi island in
the Shatt al-Arab waterway today and destroyed a bridge linking it
with the Iraqi mainland, Iran's Pars news agency claimed today.
    Pars said several artillery positions on Um al-Rasas island, at the
mouth of the Karun River 10 miles north of Abadan, were destroyed in
the attack on the 80th day of the Persian Gulf war.
    Iraq's long-range guns have been pounding Iran's besieged refinery
city of Abadan daily from Um al-Rasas.
    Pars said five Iranians were killed and 50 wounded in renewed Iraqi
shelling of Abadan, Iran's last stronghold on the eastern coast of
the Shatt al-Arab, which is Iraq's only waterway to the Persian Gulf.
    Iran and Iraq also reported artillery duels and helicopter attacks
on each other's positions around Ahwaz, capital of oil-rich Khuzistan
Province 80 miles north of Abadan, and the border town of Susangerd,
30 miles northwest of Ahwaz.
    Communiques from Tehran and Baghdad also reported fighting in
Qasr-e-Shirin and Gilan-Gharb, 300 miles north of Abadan where the
Iraqis first invaded Sept. 22.
    Pars claimed 47 Iraqi troops killed and Iraq claimed 10 Iranian
soldiers killed in the fighting at the northern end of the invasion
front.
    The two sides have been battling in the foothills of the Zagros
Mountains for the last two weeks. The bluffs command the shortest
highway from Iran's western border to Baghdad, some 100 miles to the
West.
    Today was the 403rd day in captivity for the 52 American hostages in
Iran. There have been signs in recent days that the Iranians may be
moving to end the crisis, but so far there has been no definite word.
    Ayatollah Mohammad Beheshti, head of the powerful Islamic Republican
Party, told reporters in Tehran he has seen a summary of the latest
U.S. response to Iran's conditions but said, ''It's too early to judge
this question,'' indicating the matter remained under government
study.
    
ap-ny-12-10 0657EST
**********

n999  0527  10 Dec 80
. . .
ibx cd
a546
r i wyfuivvyx
BC-LIBYA-12-10
    REPEAT FOR ALL NEEDING
    By Andrew Borowiec
    (c) 1980 Chicago Sun-Times (Field News Service)
    NICOSIA, CYPRUS-Hardly a week after the defusion of the crisis
between Jordan and Syria, new alarm bells are ringing in Arab
capitals.
    This time the tension involves pro-American Egypt and revolutionary
Libya, allied with the Soviet Union. According to diplomatic reports,
Egypt has received assurances of American support in the event of a
Libyan ''military adventure.''
    The assurances were in response to reports that sophisticated Soviet
surface-to-surface missiles dubbed ''Scaleboard'' have been deployed
in southern Libya. Egyptian President Anwar Sadat feels that they are
aimed at his country's vulnerable Aswan high dam.
    Washington, according to Arab diplomats, has warned Sadat against
any pre-emptive strike against the missiles, manned by Soviet
personnel. U.S. specialists have apparently advised Sadat that
attacking the 12 launching pads-the figure established by satellite
photography-would be a risky and difficult task, likely to trigger
uncontrolled events.
    At the same time, however, the United States has offered to
''support'' Egypt, should it become victim of any attack. No
information is available at this stage about the nature of the
assurance nor the form of an eventual U.S. support.
    Egypt and Libya have been at odds for years. Their mutual hostility
increased after the American-sponsored Egptian-Israeli peace
agreement. Egypt has basically joined the Western camp, offering its
territory for possible U.S. bases. Libya remains opposed to any
agreement with Israel. Its territory is a honeycomb of Soviet
military depots, and its foreign policy follows Soviet interests in
the Arab world and Africa.
    While the Syrian-Jordanian crisis was, basically, a clash between
conservative and radical Arab ideologies, the problems involved in
the Libyan-Egyptian tension are more complex.
    There are, at this writing, no known troop concentrations. But
Soviet military presence in Libya has been growing in recent months,
and the foreign ventures of Libya's revolutionary leader, Col.
Moammar Khadafy, have been worrying Western and Arab capitals.
    Thus, Libya is said to have infiltrated some 3,000 troops with
modern Soviet equipment into the African country of Chad. That former
French colony has been torn by civil war for 15 years, with varying
degrees of intensity. Libya, according to Western sources, has
established three solid military bases in Chad and intends to exploit
that unhappy country's feud between the Christian South and Islamic
North.
    Two weeks ago, the United States and France warned Libya against any
''rash'' move
ibx cd
a547
r i wyfuiveev
BC-LIBYA-12-10
    REPEAT FOR ALL NEEDING
    By Andrew Borowiec
    (c) 1980 Chicago Sun-Times (Field News Service)
    NICOSIA, CYPRUS-Hardly a week after the defusion of the crisis
between Jordan and Syria, new alarm bells are ringing in Arab
capitals.
    This time the tension involves pro-American Egypt and revolutionary
Libya, allied with the Soviet Union. According to diplomatic reports,
Egypt has received assurances of American support in the event of a
Libyan ''military adventure.''
    The assurances were in response to reports that sophisticated Soviet
surface-to-surface missiles dubbed ''Scaleboard'' have been deployed
in southern Libya. Anwar Sadat feels that they are
aimed at his country's vulnerable Aswan high dam.
    Washington, according to Arab diplomats, has warned Sadat against
any pre-emptive strike against the missiles, manned by Soviet
personnel. U.S. specialists have apparently advised Sadat that
attacking the 12 launching pads-the figure established by satellite
photography-would be a risky and difficult task, likely to trigger
uncontrolled events.
    At the same time, however, the United States has offered to
''support'' Egypt, should it become victim of any attack. No
information is available at this stage about the nature of the
assurance nor the form of an eventual U.S. support.
    Egypt and Libya have been at odds for years. Their mutual hostility
increased after the American-sponsored Egptian-Israeli peace
agreement. Egypt has basically joined the Western camp, offering its
territory for possible U.S. bases. Libya remains opposed to any
agreement with Israel. Its territory is a honeycomb of Soviet
military depots, and its foreign policy follows Soviet interests in
the Arab world and Africa.
    While the Syrian-Jordanian crisis was, basically, a clash between
conservative and radical Arab ideologies, the problems involved in
the Libyan-Egyptian tension are more complex.
    There are, at this writing, no known troop concentrations. But
Soviet military presence in Libya has been growing in recent months,
and the foreign ventures of Libya's revolutionary leader, Col.
Moammar Khadafy, have been worrying Western and Arab capitals.
    Thus, Libya is said to have infiltrated some 3,000 troops with
modern Soviet equipment into the African country of Chad. That former
French colony has been torn by civil war for 15 years, with varying
degrees of intensity. Libya, according to Western sources, has
established three solid military bases in Chad and intends to exploit
that unhappy country's feud between the Christian South and Islamic
North.
    Two weeks ago, the United States and France warned Libya against any
''rash'' move in the Chad civil war. The warning apparently went
unheeded. On the contrary, it was followed by the arrival in Libya of
the 12 ''Scaleboard'' missile launchers, accompanied by twice that
number of warheads.
    ''Scaleboard,'' also known in Western military circles as SS-12, is
a sophisticated missile with a 500-mile range. it can carry a
thermonuclear or conventional warhead. Western intelligence sources
beleive the warheads sent to Libya are not nuclear.
    What worries Western analysts is the fact that the deployment of the
''Scaleboard'' is the first outside the borders of the Soviet bloc.
The missiles were accompanied by teams of Soviet specialists, at
first based at Al Kufrah in the Libyan Desert, but then moved south.
    Having learned of the new deployment of the weapon, Sadat concluded
that they were aimed at the Aswan dam. If information available in
this Middle Eastern listening point is accurate, it took considerable
diplomatic effort by the United States to prevent a pre-emptive
Egyptian attack.
    Now the news of the ''Scaleboard'' deployment is part of cocktail
party chit-chat in most Arab capitals. The big question is the object
of these ultramodern weapons, previously shown in Soviet parades
covered with tarpaulins.
    Early in September, Libya agreed to a ''merger'' with Syria, with
which it has no common border but shares opposition to any pact with
Israel. After the outbreak of the Gulf war between Iran and Iraq,
Libya joined Syria in supporting non-Arab Iran. Both countries-their
merger still basically only a document-boycotted the recent Arab
summit meeting in the Jordanian capital of Amman.
    Some Arab intelligence services have reported a rising wave of
opposition to the rule of Khadafy, the self-styled ''guardian of Arab
nationalism and unity.'' Although the lot of the average Libyan is
better than ever due to the influx of oil money, there is
considerable dissatisfaction, particularly in the armed forces, wi...
(End missing.)
**********

a071  0600  10 Dec 80
PM-Brezhnev-India, 1st Led-Writethru, a065,470
Eds: New information grafs 3 to end
URGENT
    NEW DELHI, India (AP) - Soviet President Leonid I. Brezhnev today
invited the United States, China, Japan and other interested countries
to join Moscow in a network of guarantees against foreign military
bases, deployment of nuclear weapons or use of force in the oil-rich
Persian Gulf area.
    Rejecting Western claims of a ''Soviet threat'' to the strategic
petroleum-producing area, Brezhnev said in an address at India's
Parliament that ''the U.S.S.R. has no intention of encroaching upon
either the Middle East oil or its transportation route. . .''
    In January, in response to the Soviet Union's military intervention
in Afghanistan, President Carter announced that the United States
would forge a protective shield around the Persian Gulf to protect oil
supplies vital for the West. In what was called the ''Carter
Doctrine,'' the president declared the Persian Gulf region off limits
to the Soviet Union.
    Brezhnev said in his speech that, ''In contrast to the imperialist
doctrine regarding the Persian Gulf countries, we propose a doctrine
of peace and security.
    ''We propose to the United States, to other Western powers, to
China, Japan, to all states that display interest, that agreement be
reached on the following mutual obligations,'' said the Soviet chief
of state and Communist Party leader, speaking on the third day of his
official visit to India.
    Brezhnev then presented a five-point list of obligations for the
superpowers, other interested countries and nations of the Persian
Gulf area itself to undertake:
    -Not to set up foreign military bases in the Persian Gulf area and
on the adjacent islands, not to deploy nuclear or any other weapons of
mass destruction there.
    -Not to use or threaten to use force against the countries of the
Persian Gulf area and not to interfere in their internal affairs.
    -To respect the status of non-alignment chosen by the states of the
Persian Gulf area, not to draw them into military groupings with the
participation of nuclear powers.
    -To respect the sovereign right of the states of that area to their
natural resources.
    -Not to raise any obstacles or pose threats to normal trade
exchanges and to the use of sea lanes linking the states of that area
with other countries of the world.
    The Persian Gulf area has been in additional turmoil since the
outbreak of the Iran-Iraq war in September on the northern tip of the
Persian Gulf. There have been fears expressed in the West that the
Soviet Union was trying to take advantage of instability in the area
to make a major effort to establish Sovieet intervention in Afghanistan a year -
ago and the
Soviet-Syrian friendship treaty signed in October provided indications
that the Kremlin was attempting to strengthen its presence in the
area.
    
ap-ny-12-10 0900EST
**********

n999  1213  10 Dec 80
. . .
wxx cdnh
a042
r w czcuivbyl
BC-REAGAN-OIL
(Newhouse 003)
By PETER J. BERNSTEIN
Newhouse News Service
    WASHINGTON - As President-elect Reagan takes power, look for the
incoming administration to revamp the Energy Department by abolishing
most of its regulatory functions and reshaping it as an ''advocate
for energy'' within the government.
    But don't expect the nation's energy problems to disappear with yet
another sweeping ''reform'' of the federal bureaucracy. Nothing short
of making Saudi Arabia and Mexico the 51st and 52nd states could
guarantee adequate oil supplies.
    U.S. oil production is likely to decline from the current 10 million
barrels a day to between 6 million and 7 million by 1990, even with
stepped-up leasing of federal lands for exploitation. So if America
somehow managed a decade of economic growth without burning more oil,
it still would have to increase daily imports by 3 million to 4
million barrels.
    That prospect - reduced domestic oil production and increased
dependence on foreign supplies - is a matter of serious concern to
Reagan's advisers. They share a widespread fear among energy experts
that America's vulnerability to an oil cutoff has been heightened by
the unexpectedly long war between Iran and Iraq.
    In an attempt to strengthen the first line of defense against sudden
disruption of the oil lifeline, Reagan is expected to move quickly to
fill up the nation's Strategic Petroleum Reserve. Seven years after
the Arab embargo, the government reserve contains fewer than 100
million barrels of crude oil - stashed away in salt domes in Texas
and Louisiana.
    That's barely enough to replace two weeks' worth of oil imports.
    Congress recently approved adding at least 100,000 barrels to the
reserve each day. But Reagan advisers are insisting on a fill rate of
400,000 barrels a day, both for security reasons and to reduce the
need for federal allocation rules in the event of an oil emergency.
    In addition, the new administration is likely to ease environmental
restrictions on coal burning so that existing oil-fired plants can be
converted to coal or replaced.
    Some Reagan advisers - notably Michel Halbouty, an independent
Houston oilman who heads Reagan's energy transition team - are
calling for further steps to encourage oil companies to find and
produce oil within the United States. These advisers are urging
immediate federal decontrol of domestic crude oil prices instead of
waiting until next Oct. 1, the date set by Congress.
    They also are recommending faster decontrol of natural gas prices.
Under the 1978 Natural Gas Policy Act, Congress set decontrol for
k
1985. But one energy specialist close to Reagan says this timetable
would leave natural gas as ''a resource that is underpriced and
inefficiently used.''
    Some Reagan advisers want the decontrol of gas prices to be finished
by 1982. They cite a recent Energy Department study saying that
faster decontrol of gas prices would cut oil imports 430,000 barrels
a day by 1995 by promoting exploration for and production of natural
gas.
    But the inflationary pressures from such a speed-up would
undoubtedly pose serious economic problems for the new
administration. Reagan aides acknowledge that pragmatic politics may
well force him to continue - at least for a few years - some of the
same Carter administration programs, policies and institutions he
once derided.
    These include the windfall profits tax on oil company revenues, the
fledgling Synthetic Fuels Corporation and even the much-criticized
Energy Department.
    Despite the incoming administration's oft-repeated vow to dismantle
the department, there are increasing doubts among his energy aides
that this is possible or even desirable. For one thing, any move to
abolish the department would require congressional approval - and
that might be unattainable despite widespread dissatisfaction on
Capitol Hill with the 3-year-old agency.
    The Synthetic Fuels Corporation has been assailed by Reagan and his
advisers as an unneeded intrusion into the private sector. But that
doesn't mean, one energy aide says, that Reagan will do away with it.
    The aide suggests another possible course. Reagan, he says, might
allow the corporation to proceed with its $20 billion, seven-year
first phase of providing price and loan guarantees to a variety of
synfuel projects involving coal, oil shale and biomass. But it is
unlikely that he later would seek for the corporation the additional
$68 billion envisioned by Congress for further development programs.
    Instead of disbanding the synfuels corporation, Reagan might replace
its chairman and chief executive officer, John Sawhill, who was
appointed by Carter. RB END BERNSTEIN
    
nyt-12-10-80 1513est
**********

n999  1256  10 Dec 80
. . .
ixx ny
a048
r i czcuivryr
AM-BREZHNEV 2takes
Brezhnev Ask Western Powers For Non-Aggression Pact In Persian Gulf
By MICHAEL T. KAUFMAN
c. 1980 N.Y. Times News Service
    NEW DELHI - President Leonid I. Brezhnev of the Soviet Union
Wednesday invited the United States and other world powers to join
with the Soviet Union in a formal compact to forswear military and
naval intervention in the Persian Gulf area.
    In his speech to the members of India's Parliament, the 73-year-old
Soviet leader maintained a critical and at times aggressive tone
attacking ''the NATO military bloc'' for a build up of arms and
tensions. At the same time Brezhnev seemed eager to convey assurances
westward that the Soviet intervention in Afghanistan was limited in
its objectives and that Soviet forces in that country posed no threat
to either the oil fields of Iran or Pakistan, both lying well within
the reach of Soviet troops.
    ''Opponents of normalizing the international climate and the
initiators of the arms race refer now in justification of their
activities, to the situation in Afghanistan,'' said the Russian
leader who was accorded a polite but sedentary ovation. ''They are
making a noise for all the world to hear about a Soviet threat to
Pakistan or to the countries of the Persian Gulf, or God knows to
whomever else, though they know very well that there is not a trace
of such a threat.''
    At another point, Brezhnev said that ''powers situated at a distance
of many thousands of kilometers'' from the gulf had concentrated ''a
military armada'' in the region and were building up armaments. He
said attempts had been made to explain such moves ''by talking about
a Soviet threat to the oil riches of this area.'' And he described
such talk as ''pure invention'' adding that the Soviet Union ''has no
intention of encroaching upon either the Middle East oil or its
transportation route.''
    He then went on to outline what he termed ''a doctrine of peace and
security'' in regard to the countries of the Persian Gulf. Soviet
officials reported that the speech here marked the first announcement
of the policy and that it represented a significant initiative.
    Brezhnev directed his offer ''to the United States, to other Western
powers, to China, Japan and all states that display interest'' and
spelled out five elements of what might be described as a gulf region
non-aggression pact.
    He said the interested states should agree ''not to set up foreign
military bases in the Persian Gulf area and on the adjacent
islands.'' They should not deploy nuclear weapons there. Similarly,
the powers should ''not use or threaten to use force against the
countries of the Persian Gulf area and not to interfere in their
internal affairs.'' Brezhnev added that the interested major powers
should not try to draw Persian Gulf states ''into military
groupings.'' Finally, he said the major states should agree ''not to
raise any obstacles or pose threats to normal trade exchanges and the
use of sea lanes linking the states of that area with other countries
of the world.''
    The speech, which was first issued as it was delivered in the
parliament hall Wednesday evening, drew marked interest from
diplomats several of whom said it would require close reading and
analysis. One Western diplomat said that it seemed that Brezhnev was
projecting at least part of his message towards the incoming Reagan
administration and that the speech contained some suggestion of a
deal in which assurances of Soviet restraint in the vital oil
producing regions were being offered in exchange for the acceptance
and tolerance of the Soviet presence in Afghanistan.
    The linkages between Afghanistan and the gulf area were clearly
drawn. Brezhnev said that while the Western powers were calling for
''the cessation of Soviet military assistance to Afghanistan,'' they
were really doing ''everything to impede this.''
    ''They are continuing to send armed gangs into Afghanistan and they
are scared to death of agreement between Afghanistan and its
neighbors, especially Pakistan.''
    Brezhnev echoed earlier Soviet statements that life in Afghanistan
was gradually becoming more and more normal and that the time would
come when ''it will become clear to Afghanistan's southern neighbors
that the only realistic way is good neighborly agreement with the
Afghan government.'' He added, ''as a result, prerequisites will
emerge for the full political normalization of the situation,
including withdrawal of Soviet troops from Afghanistan.''
(MORE)
i
    
nyt-12-10-80 1556est
**********

a232  1441  10 Dec 80
AM-Brezhnev, Bjt,660
Brezhnev Offers Persian Gulf Peace Plan
BY GENE KRAMER
Associated Press Writer
    NEW DELHI, India (AP) - Soviet President Leonid I. Brezhnev offered
the United States and other countries on Wednesday a five-point plan
to guarantee peace in the turbulent Persian Gulf in place of the
''Carter Doctrine'' for U.S. defense of the oil-rich area.
    In a major policy address concluding a state visit to India,
Brezhnev rejected Western claims of a ''Soviet threat'' in the gulf
and called on the United States, China, Japan and other countries to
join Moscow in renouncing force, military bases and nuclear weapons
from the strategic area.
    Brezhnev told the Indian Parliament that, ''In contrast to theerialist doct-
rine with regard to the Persian Gulf countries, we
propose a doctrine of peace and security.''
    In Washington, State Department spokesman Jack Cannon said the issue
of military withdrawal from the gulf would have to be addressed by
the Reagan administration when it takes office Jan. 20.
    ''To the extent that the Soviet president was talking about
maintaining peace in the Persian Gulf, our interests would coincide.
We are highly supportive of maintaining peace in the Persian Gulf and
elsewhere,'' Cannon said.
    Last January, responding to Soviet intervention in Afghanistan,
President Carter announced the United States would erect a military
shield around the Persian Gulf to safeguard oil supplies vital for the
West. In what was called the ''Carter Doctrine,'' the United States
sent aircraft carriers and other naval units to waters near the gulf
and declared the region off-limits to the Soviet Union.
    Brezhnev belittled as ''pure invention'' the idea of a Soviet threat
to Middle East oil. He challenged the United States, other Western
countries, China, Japan and other interested nations to undertake a
series of ''mutual obligations'' to assure peace in the region and
guarantee open sea lanes to the Persian Gulf.
    U.S. officials have said that America and its allies would defend
Middle East oil supply lines against any threat and that the United
States would defend them alone if necessary.
    Cannon said Wednesday: ''We made clear why we have deployed units in
the Persian Gulf and in the Indian Ocean. For any elaboration on
future U.S. policies we are just going to have to await the statements
of the incoming administration.''
    Brezhnev's sweeping proposal could be seen as a move to build
sentiment for dismantling the U.S. military presence in the region.
    The wording of his 30-minute speech was vague, however, on whether
the proposed guarantees would be limited to the Persian Gulf or take
in nearby waters. It also was not clear if the proposal would apply to
existing military installations as well as proposed ones.
    The only known base in the Persian Gulf itself is a U.S. facility on
Bahrain Island. Following the outbreak of war between Iran and Iraq,
both touching the gulf, the United States sent flying radar stations
to Saudi Arabia, another Persian Gulf country.
    Forty percent of the non-Communist world's crude oil passes through
the Strait of Hormuz, connecting the Persian Gulf with the Gulf of
Oman.
    Apparently referring to Western concern about the security of the
vital waterway, Brezhnev told Indian legislators, ''The U.S.S.R. has
no intention of encroaching upon either the Middle East oil or its
transportation route . . .''
    Brezhnev listed a five-point list of obligations for countries
willing to insure peace in the Persian Gulf:
    -Not to set up foreign military bases in the Persian Gulf area and
on the adjacent islands, not to deploy nuclear or any other weapons of
mass destruction there.
    -Not to use or threaten to use force against the countries of the
Persian Gulf area and not to interfere in their internal affairs.
    -To respect the status of non-alignment chosen by the states of the
Persian Gulf area, not to draw them into military groupings with the
participation of nuclear powers.
    -To respect the sovereign right of the states of that area to their
natural resources.
    -Not to raise any obstacles or pose threats to normal trade
exchanges and to the use of sea lanes linking the states of that area
with other countries of the world.
    
ap-ny-12-10 1742EST
**********

a234  1455  10 Dec 80
AM-War Rdp,400
Iran Claims Iraqi Artillery Base Destroyed
By KATE DORIAN
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran claimed Wednesday its navy destroyed an
Iraqi island artillery base in the Shatt al-Arab waterway in an
apparent effort to ease the relentless Iraqi bombardment of Abadan,
Iran's major southwestern stronghold.
    In New York, former Swedish Prime Minister Olof Palme said he
planned to resume his U.N. peace mission to Iran and Iraq early next
year. Describing his recent visits to Tehran and Baghdad as
exploratory, he said the second phase would be to discuss
''possibilities of peace.''
    Iran conceded it lost five dead and 50 wounded in the latest Iraqi
shelling of Abadan, site of one of the world's largest oil refineries.
    The official Iranian news agency Pars said Iranian gunboats mounted
a two-day attack on the Iraqi island of Um-al-Rasas in the Shatt
al-Arab and blew up a bridge linking the island to the Iraqi mainland.
    Iraq claimed 420 Iranians killed in an abortive Iranian attempt
Monday to break the nine-week siege of Abadan. An Iraqi communique
broadcast by Baghdad radio claimed 195 Iranians were killed near
Abadan and that Iranian counterattacks were repelled.
    Another Iraqi communique said that during air raids on Iranian
military targets in the Abadan area, Iraqi helicopters destroyed a
black Mercedes that was protected by four personnel carriers. The
communique said the car was ''assumed'' to have been carrying Iranian
officials.
    In a communique broadcast by Tehran Radio, Iran claimed its
long-range artillery pounded the Iraqi oil installations at Fao,
Iraq's main oil terminal 50 miles south of Abadan.
    It said two oil storage depots were set on fire in Fao, the target
of daily Iranian air and artillery attacks.
    War claims from both countries could not be independently confirmed
since reporters have been barred from either side of the war front.
But despite rival victory claims battlefield positions remained
virtually unchanged since Iraq invaded western and southwestern Iran
12 weeks ago.
    At the United Nations, Palme conferred for two hours with
Secretary-General Kurt Waldheim on the outlook of the peace mission
and chances for freeing 70 merchant ships that have been stranded in
the Shatt al-Arab estuary since the outbreak of the war. Palme said as
far as he knew none of the vessels had left despite an agreement in
principle he had worked out between the two countries last month.
    
ap-ny-12-10 1756EST
**********

a245  1548  10 Dec 80
AM-Brezhnev, Bjt - Sub, a232,210
NEW DEHLI: To update with Muskie comments and Richard Allen no
comment and to provide transition and add Cannon uote, SUB grafs 4-5,
Ie is meeting with foreign ministers
from several North Atlantic Treaty Organization nations, Secretary of
State Edmund S. Muskie said Brezhnev's proposal to turn the gulf into
a militarily neutral zone sounded like previous Soviet proposals. But
he added: ''Nevertheless the Iraq-Iran war is and continues to be a
problem, and if the Russians are addressing themselves to it we ought
to examine what they have to say, and we will do so.''
    In Washington, State Department spokesman Jack Cannon said the issue
of military withdrawal from the gulf would have to be addressed by
President-elect Ronald Reagan's administration when it takes office
Jan. 20. A spokesman for Richard V. Allen, Reagan's chief foreign
policy adviser, said Allen would have no comment on Brezhnev's
remarks.
    Cannon said: ''To the extent that the Soviet president was talking
about maintaining peace in the Persian Gulf, our interests would
coincide. We are highly supportive of maintaining peace in the Persian
Gulf and elsewhere.
    ''Our forces in the Persian Gulf and in the Indian Ocean are
relaing to the current crisis in that part of the world. However, I
would want to state that our policies are our own and I wouldn't want
to relate them directly to what Mr. Brezhnev was saying.''
    Last January, 6th graf
    
ap-ny-12-10 1849EST
**********

n999  1605  10 Dec 80
. . .
nypt
a068
r w czcvyxryr
BC-POLAND-U.S.
U.S. Faces East-West Crisis Over Poland That Lacks Easy Solution
(News Analysis)
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - With less than six weeks left in office, the Carter
administration finds itself enmeshed in an East-West crisis over
Poland that lacks any easy solution and is further complicated by the
uncertainty of whether the Russians will actually intervene in Poland
or not.
    By constantly warning that military signs suggest that such an
intervention seems near, the administration is hoping to discourage
the Soviet Union from going ahead with such a fateful action. Most
senior administration officials believe that Moscow is embarked on
such a course and is only looking for the right moment to act.
    But there is a lingering uncertainty, particularly at the State
Department, that the Russians will intervene. There is an even more
serious question, however, being raised privately on how this
intervention will occur, if it does take place at all.
    Secretary of State Edmund S. Muskie and Defense Secretary Harold
Brown are in Brussels trying to persuade the European allies to
regard any Soviet-led Warsaw Pact intervention, even by
''invitation'' from Polish leaders, as tantamount to a rupture of
detente, and reason enough for the allies to take the kind of drastic
economic and political measures against Moscow that they by and large
refused to do following the Soviet military moves into Afghanistan a
year ago.
    There is some concern, however, within the administration that the
Russians will not make this American effort easy by launching the
same kind of invasion they carried out in 1968 when the liberal
leadership of Czechoslovakia was arrested and the country put under
virtual occupation.
    Such an ''invasion'' today, against the Polish leadership, would
probably bring fairly tough responses from the West Europeans,
officials believe, and would further unite the Atlantic alliance. It
would probably even provide the impetus for the Europeans to meet
their commitments on raising military spending.
    What troubles many officials is the possibility that the Russians,
East Germans and Czechoslovaks may enter Poland for military
''exercises,'' officially sanctioned by the Poles, to back up a
possible crackdown by Polish authorities. The Carter administration
would regard such a move as intervention in Poland's internal
affairs, and justify political and economic sanctions. But there is
considerable doubt here that the Europeans would react in the same
way.
    Would the French, British and West Germans, for instance, break off
their important trade with the Soviet Union and East Europe over what
could be seen as a local police action in Poland? Again, uncertainty.
If the Polish people riot or cause other disturbances, provoking the
Russians to intervene themselves in bringing about order, that could
arouse public opinion in the West and force their governments to take
stronger action.
    A major problem for the Carter administration now is that it lacks
much leverage either with the Russians or its allies.
    It is a political fact of life that the closer a lame duck
administration draws to Jan. 20, the weaker becomes its influence and
the more hollow its exhortations. If the Russians are deterred from
acting by the United States it is not by concern over what Jimmy
Carter is saying but by the realization that a new chapter in
Soviet-American relations will open on Jan. 20 when Ronald Reagan
assumes the presidency.
    Does Moscow want to start relations with the Reagan administration
in a crisis atmosphere?
    Until the last few days, the assumption in Washington had been that
the Soviet Union would delay any moves in Poland until it had time to
test the waters with the Republicans.
    But now, this view is no longer given so much force because of the
intensity of the Soviet buildup along its borders with Poland.
    The asumption here is that the Soviet Union may undertake an
''invited'' intervention into Poland, while at the same time
repeating its desire for closer East-West relations. That is exactly
the kind of policy geared to cause the most trouble for either the
Carter or Reagan administrations.
    Brezhnev's speech in New Deli on Wednesday calling for no foreign
military bases in the Perian Gulf is seen here as the kind of
background noise that Moscow would make to distract world attention
from both Afghanistan and Poland.
    In a sense, these final six weeks amount to a last hurrah for
President Carter and Zbigniew Brzezinski, his national security
adviser, on the world scene. Their warnings about Poland have caused
some private exasperation in Western embassies that are complaining
about an excess of zeal from the departing administration.
    For much of the past year, the White House has been at odds with its
key allies over the degree and intensity of their support on the two
issues that up to now have dominated policy-makers: the reaction to
the Soviet military intervention in Afghanistan and the sanctions
against Iran.
    In both cases, the White House has felt that its allies gave only
the most grudging support that had to be virtually forced from them.
The allies, in turn, have charged Washington with failing to take
into account their particular situations.
    Now that the Carter administration is departing the scene, the
tendency of the allies will be to wait for Reagan, unless the
Russians move with such brutality that delay is impossible.
    
nyt-12-10-80 1905est
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n999  1748  10 Dec 80
. . .
ny
a082
r a czcryrbyl
BC-STOCKMAN 2takes
By LEONARD SILK
c. 1980 N.Y. Times News Service
    NEW YORK - Two of President-elect Reagan's closest advisers have
urged on him an emergency program intended to head off what they
describe as an ''economic Dunkirk'' threatening to overwhelm the new
Reagan administration.
    The detailed exhortation was presented to Reagan by Rep. David A.
Stockman of Michigan, who is expected to be named director of the
Office of Management and Budget, and by Rep. Jack F. Kemp of New
York, who is noted for his early espousal of dramatic tax cuts.
    Stockman, 32, and Kemp, 45, are leaders of the ''supply side'' group
among the Reagan advisers. This group, made up of relatively young
Republican strategists, has urged a dramatic and expansive, though
risky, economic policy on the president-elect, in contrast to more
traditional approaches to curbing inflation by slowing the economy.
    The Stockman-Kemp report, which was made available to The New York
Times, is written in an impassioned style and marked by dire warnings
and urgent pleas for policy initiatives long advocated by the
authors. The 23-page document warns that the stage is being set for
an economic crisis during the first two years of the Reagan
administration.
    - They see a worsening ''credit crunch'' - a severe tightening of
money and escalation of interest rates - that will lead to further
deterioration in long-term capital markets, a renewed slowdown in
consumer spending, and ''intensified uncertainty throughout financial
markets.''
    - They predict that national output will stagnate or decline in the
first half of 1981, and thereby generate ''staggering political and
policy changes.'' They include a dire budget outlook, intensified
pressures for protection against automobile imports, costly
''bailouts'' of housing, and rising outlays to support a growing
number of jobless workers.
    - They say that, even without the further tax cuts that both men
favor, there will be deeper federal budget deficits, rising
government spending and a ''hemorrhage'' of federal credit, swelling
the deficit for fiscal 1981 to $50 billion to $60 billion.
    - They predict that, because of growing loan and loan-guarantee
programs, federal credit agencies will preempt $100 billion in
available funds beyond the Treasury's borrowings to finance the
official deficit. The paper warns that these spending, deficit and
federal credit trends are ''generating market expectations of a
chronic and severe Reagan inflation.''
    - They warn that the shocks to commodity and oil prices, stemming
from the Iran-Iraq war and rapid draw-down of world oil and feed
grain stocks, will send world oil prices to $40 to $50 a barrel in
the first six months of 1981, unless the Middle East war ends soon.
    - They foresee an ''unprecedented'' scaling up of the regulatory
burdens on American business, which, they assert, are just now about
to strike the industrial economy ''with near-gale force,'' preempting
billions in investment capital, driving up costs, and leaving
companies in ''an incredible morass of new controls and compliance
procedures.''
    The paper warns that, unless these developments are dealt with
boldly, the Republicans could suffer an erosion of momentum, unity
and public confidence. Washington, it declares, would be quickly
engulfed in political disorder, as the thin Republican majority in
the Senate and de facto conservative majority in the House was
fragmented and returned to ''fire-fighting as usual.''
    The Stockman-Kemp paper asserts, for instance, that crude oil price
controls, refiner entitlements, gasoline allocations and product
price controls are completely ended by Feb. 1, there is ''high
probability of gasoline lines and general petroleum market disorder
by early spring.'' That would touch off disputes in Congress over
emergency measures, cost the administration its initiative on energy
policy and leave it engulfed in ''defensive battles,'' they say.
    (MORE)
    
nyt-12-10-80 2048est
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n999  2331  10 Dec 80
. . .
ibx cd
a507
r i wyfczceev
BC-KIM-12-11
    (c) 1980 Chicago Sun-Times (Field News Service)
    Amnesty International has appealed to the heads of government of
each of the 43 nations on the United Nations Human Rights Commission
in an effort to prevent the execution of South Korean opposition
leader Kim Dae-Jung.
    Noting that the commission is responsible for protecting human
rights and fundamental freedoms, Amnesty International this week
urged the government leaders to intercede on Kim's behalf with South
Korean President Chun Doo Hwan.
    In letters to each of the 43, the international human rights
organization said: ''Because of the publicity surrounding Kim Dae
Jung's trial and because of his prominence, his case can be seen as a
challenge to the international community.'' His execution, Amnesty
Intd at today's meeting of the cent to respect for international
human rights standards.
    ''Since the 1960s,'' the letters said, ''Kim Dae Jung has been
subjected to a series of human rights violations: imprisonment for
the peaceful exercise of his right to freedom of expression, ill
treatment during detention, unfair trial and now the imposition of
the death penalty. As the most prominent leader of the opposition in
South Korea, he has repeatedly been a victim of exile, imprisonment
and house arrest.''
    Amnesty International, which opposes the death penalty in all cases
and circumstances, has appealed to the South Korean authorities to
grant clemency to 12 other political prisoners sentenced to death.
    Kim and 23 co-defendants, who receive prison sentences, were
convinced in September by a military court after a trial described by
Amnesty International as having failed to meet internationally
recognized standards of fairness. Kim was accused of founding an
''anti-state organization'' and of instigating student disturbances,
but he and the other accused were denied the opportunity to present a
proper defense. It has still not been disclosed on which of the
charges Kim Dae Jung was sentenced to death. Amnesty International
pointed at the time to evidence that the accused were threatened and
ill treated while being interrogated in detention before the trial.
    Kim's execution would contravene human rights standards agreed to by
most governments, Amnesty International said in its messages to the
heads of government.
    Kim has appealed to the Supreme Court of South Korea. If his
sentence is upheld President Chun has the power to commute it and the
other death sentences.
    The 43 countries represented on the UN Human Rights Commission are:
    Algeria, Argentina, Australia, Benin, Brazil, Bulgaria, Burundi, the
Byelorussian Soviet Socialist Republic, Canada, Colombia, Costa Rica,
Cuba, Cyprus, Denmark, Egypt, Ethiopia, France, West Germany, Ghana,
Greece, India, Iran, Iraq, Ivory Coast, Jordan, Mongolia, Morocco,
Netherlands, Nigeria, Pakistan, Panama, Peru, Philippines, Poland,
Portugal, Senegal, Uruguay, Yugoslavia and Zambia.
    ENDIT
    
nyt-12-11-80 0231est
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n999  2340  10 Dec 80
. . .
ibx cd
a508
r i wyfczcryr
BC-BREZHNEV-12-11
    By Pran Sabharwal
    (c) 1980, The Baltimore Sun (Field News Service)
    NEW DELHI - Soviet leader Leonid Brezhnev, warning that ''the
Persian Gulf area and the Indian Ocean are becoming an increasingly
dangerous seat of international tension,'' has proposed a pact with
the West to ban nuclear weapons and military bases in the area.
    The Soviet president and Communist Party leader, speaking in the
high-domed circular hall of India's parliament Wednesday, blasted
Washington and the allies for the arms buildup in the region:
    ''Under the trumped-up pretext of protecting their vital interests,
powers situated at a distance of many thousands of kilometers from
this area have concentrated here a military armada and are vigorously
building up armaments, widening the network of their military bases,
exerting pressures on and threatening, the small countries which
refuse to trail in their wake.''
    Saying that the Soviet Union cannot be ''indifferent'' to what is
happening close to its borders, Brezhnev went on to propose a
''doctrine of peace and security'' based on five propositions.
    In Washington, the State Department response to Brezhnev's proposals
was tepid, both publicly and privately. Most officials saw them as
merely another Soviet effort to hold to Moscow's positions while
declaring those of the United States to be negotiable.
    First of all, said John F. Cannon, a department spokesman, the
United States would welcome Soviet interest in keeping the Persian
Gulf peaceful. But the United States does not have bases in the
region, he said, and ''our policies are our own, not related to
Brezhnev's remarks.''
    What Brezhnev was proposing seemed to be long-term policy, he said,
and ''for any elaboration on future policy I think we are just going
to have to await the statements of the incoming administration.''
    ''Brezhnev is just saying things to suit his Indian audience,'' one
official remarked. ''We've been down this road too often with him to
encourage leaping at another proposal for negotiations.''
    Under the Brezhnev formula, the powers, in addition to refraining
from introducing nuclear weapons into the Gulf region or establishing
bases, would agree not to use or threaten the countries of the region
or ''interfere in their internal affairs.''
    The pact would also call on the powers to ''respect the status of
non-alignment'' of the Gulf states, and to refrain from drawing them
into military alliances.
    Finally, the Brezhnev proposal urges the Western states and the
Soviets to agree ''to respect the sovereign right'' of the gulf
states to their natural resources, and to refrain from raising
obstacles to normal trade and the ''use of the sea lanes'' linking
the gulf states with the rest of the world.
    This latter was evidently aimed at any potential blockade by the
allies of the Strait of Hormuz.
    According to analysts in India, the Brezhnev proposals were
designed, in part, to shift the focus of attention away from
Afghanistan.
    Brezhnev did not spare the United States during his address to the
Indian parliament. He blamed the deterioration of the international
situation on Washington and its NATO allies.
    However, the Soviet leader also expressed a willingness to remove
''difficulties'' that have accumulated between the U.S.S.R. and the
United States in recent years.
    He said he wanted a positive response and quoted an Indian adage
which said that you ''cannot clap with one hand alone.''
    The Soviet delegation in India went out of its way to deny
allegations that Soviet troops were about to invade Poland.
    Brezhnev was applauded 14 times, but all these were when he referred
to Soviet-Indian relations or Indian achievements. His references to
the Iran-Iraq war, Afghanistan, peace in the Persian Gulf, and other
issues did not evoke any response.
    ENDIT SABHARWAL
    
nyt-12-11-80 0240est
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a041  0300  11 Dec 80
PM-Hostages,580
Paper Says They'll Be Free on Xmas Day
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - A leftist Beirut newspaper reputed to be
close to Iran's revolutionary regime reported today that the 52
American hostages are expected to be freed on Christmas Day. But there
was no evidence that the report was any more reliable than numerous
others like it in the past.
    Quoting unnamed informed Iranian sources, the newspaper As-Safir
said:
    ''Agreement has been completed between the United States and Iran to
resolve the hostage issue. They are expected to be freed on the 25th
of this month.''
    No authoritative officials in Tehran or Washington were immediately
available for comment on the report.
    As-Safir said a compromise has been reached on the Iranian demand
that the wealth the late Shah Mohammad Reza Pahlavi transferred abroad
be returned to Iran. It said the U.S. government agreed to freeze the
shah's deposits in American banks pending a court verdict on whether
to turn the money over to the government of Iran or his heirs.
    The sources said the Iranian government accepted this position,
which was set forth in a U.S. communication delivered to the Algerian
government last week and relayed by it to Tehran.
    As-Safir's report said nothing about the three other conditions set
by Ayatollah Ruhollah Khomeini and the Majlis, Iran's parliament, for
the release of the Americans who today were spending their 404th in
captivity.
    These were a pledge of non-interference in Iran's domestic affairs,
the unfreezing of Iran's deposits in U.S. banks and abandonment of
all legal action against Iran in the United STates.
    The United States has repeatedly pledged not to interfere in Iran.
Earlier reports from Tehran and Washington said it told the Iranian
government President Carter could rescind his order freezing the bank
deposits, but the U.S. government has no power to stop legal action
against Iran by private Americans and companies. Even if Carter
rescinded his order, much of the Iranian funds would be blocked
because of such actions.
    As-Safir also said the U.S. government in the negotiations refused
to pledge to supply Iran with spare parts and other military hardware
for its war with Iraq. It did not elaborate.
    Iraq said today it crushed the second Iranian attempt in four days
to break the nine-week old siege of Iran's refinery city of Abadan.
    It said Iraqi helicopter gunships destroyed a limousine, ''probably
carrying senior enemy officials,'' along with an escort of four
Iranian armored personnel carriers on the embattled outskirts of
Abadan.
    The communique said 50 Iranian soldiers were killed by helicopter
raids and 195 in ground fighting to beat back the effort to breach
Iraq's forward lines around Abadan on the eastern coast of shatt
al-arab waterway. It conceded seven Iraqi deaths .
    Iraq claimed repulsing a similar counter-attack on Monday, killing
420 Iranians as the Abadan garrison reportedly sent troops and tanks
in an attempt to cross the Bahmanshir river and drive Iraqi lines
back.
    Iraq also announced its first fuel-saving restrictions since
invading Iran Sept. 22. It ordered private cars to be used on
alternate days as of Saturday, according to their odd or even plate
numbers and threatened legal measures against violators.
    The measure was evidence that both oil-producing giants are feeling
the pinch. Iran banned the use of private cars altogether a month ago
and also rationed electricity and basic commodities.
    
ap-ny-12-11 0600EST
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n999  0641  11 Dec 80
. . .
fxx ny
a006
r f czcczcvyx
AM-YAMANI
(BizDay)
By STEVEN RATTNER
c. 1980 N.Y. Times News Service
    RIYADH, Saudi Arabia - Sheik Ahmed Zaki Yamani, Saudi Arabia's oil
minister, indicated Wednesday that his country would be willing to
raise its oil prices if other oil-exporting nations would agree to
limit their prices.
    However, Yamani, in an interview just before leaving for a meeting
next Monday of the Organization of Petroleum Exporting Countries,
said he did not expect the 13 members to agree to unify oil prices,
and he stressed that any price increases resulting from the meeting
were likely to be small.
    ''We'll be doing our best to make some restraint'' on prices at the
meeting in Bali, Indonesia, he said. However, he noted that ''we are
the only nation'' charging less than a basic $32 per barrel for crude
oil, and some official prices are as high as $37 a barrel.
    In the past, Saudi Arabia has called for price moderation but failed
to achieve it.
    Yamani bases his optimism on prices principally on his forecast of
an oil surplus in 1981, with a ''substantial surplus'' in prospect
for 1982.
    Much of his favorable view stemmed from two factors: indications
that Iraq and Iran were beginning to resume production and exports,
and sluggish demand for oil in consuming countries.
    Saudi Arabia's production has continued to surge above its 8.5
million-barrel daily ceiling, to 10.3 million, Yamani said, adding
that Saudi Arabia could sustain production of ''a bit more.'' He said
capacity would reach, ''sometime in the near future, 12 million
barrels a day.''
    In those estimates, he seemed to confirm recent reports that the
kingdom had accelerated its oilfield development program. However, he
also said ''we are not in a hurry, knowing there will be a glut
soon,'' and that there were no plans to raise daily capacity beyond
12 million barrels.
    But he also praised an agreement earlier this week among the
industrial countries in the International Energy Agency to limit
imports, calling it ''a very remarkable achievement if it is carried
out.'' He said it would ''eliminate the possibility of any panic in
the spot market that might lead to a substantial price increase.''
    Yamani on Wednesday got a briefing on that agreement from Charles W.
Duncan Jr., the American secretary of energy, who came to Riyadh from
Paris for a one-day visit.
    As for OPEC, he said, ''I feel good about the meeting.'' While
terming the Iraq-Iran war a ''great unknown,'' Duncan said the oil
supply situation was ''manageable.''
    Both officials noted that the action by the IEA to reduce imports,
largely by drawing on inventories, was in concert with a call several
weeks ago by the Saudi minister.
    Yamani based his opinion on prices (there is ''no need to worry
now'') partly on a forecast that ''sometime in January,'' Iraqi
exports though pipelines would reach 1.6 million barrels a day,
compared to 3 million before the war.
    ''There will be a surplus - definitely - unless political events
interrupt the flow of oil again,'' Yamani said. He also cited
increased production outside of OPEC, conservation and use of
alternative energy sources.
    In 1981, production from Iran and Iraq would allow consuming
countries to have larger stocks at mid-year than at the beginning of
the year, the minister said.
    
nyt-12-11-80 0941est
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a079  0643  11 Dec 80
PM-NATO, 2nd Ld, a070,230
Eds: New grafs 1-6 to update
Lawerphoto NY4
By ARTHUR L. GAVSHON
AP Diplomatic Correspondent
    BRUSSELS, Belgium (AP) - NATO foreign ministers agreed today to
retaliate against any Soviet intervention in Poland with a series of
political and economic measures that would have ''very grave''
consequences for the Soviet Union, the French foreign minister said.
    Foreign Minister Jean Francois-Poncet told reporters the 15 foreign
ministers were united in planning a series of responses. ''The
ministers made it clear that if there were an eventual Soviet
intervention in Poland the consequences would be very grave on all
levels - diplomatic, political, economic and defensive.''
    By defensive, Francois-Poncet was referring to beefing up the
military capacity of the North Atlantic Treaty Organization and not to
a NATO military response to a Soviet intervention.
    The NATO ministerial council also agreed to reconvene in emergency
session if the Soviets did take military action against Poland.
    After the Soviet incursion into Afghanistan last December, some U.S.
observers felt the Western allies dragged their feet in their
reaction to the move. Similarly, the allies' response to Iran's taking
of the U.S. hostages was felt to lack bite.
    Francois-Poncet said NATO's main interest now is to leave the
Soviets with ''no misunderstanding'' about the gravity of an
intervention.
    U.S. Secretary of State Edmund S. Muskie joined his 14 European and
Canadian counterparts in the meeting and the United States was urging
a concerted and tough political and economic response.
    Muskie arrived: 3rd graf
    
ap-ny-12-11 0944EST
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a203  0958  11 Dec 80
PM-Hostages, 1st ld, a041,260
BEIRUT: Substitute for grafs 1-7 to top, showing new step on hostage
terms
    BEIRUT, Lebanon (AP) - An Iranian official said today his government
is studying a U.S. proposal to freeze the late shah's assets in U.S.
banks - an attempt to remove one of the main stumbling blocks to
release of the 52 American hostages. He denied a newspaper report that
release of the hostages had been set for Christmas Day.
    Ahmad Azizi, head of Prime Minister Mohammad Ali Rajai's public
relations office, said in a telephone interview from Tehran that the
latest U.S. response to Iran's conditions for release of the hostages
was ''more positive'' than the previous U.S. answer.
    He denied the report by the leftist Beirut newspaper As-Safir that
Iran had accepted the U.S. plan and the hostages would be freed
Christmas Day. He added:
    ''We have not yet reached an agreement on this issue, and we haven't
given our response.''
    Asked when the hostages would be released, Azizi said, ''We still do
not know. When we give the U.S. our reply, it will be known. We are
now in the process of answering the U.S. and I do not think it will
take very long.''
    He confirmed As-Safir's report that the United States had proposed
freezing the late Shah Mohammad Reza Pahlavi's assets in U.S. banks
while the American courts decide if the money belongs to the Islamic
republic or to the shah's heirs.
    There was no immediate comment from Washington on the As-Safir
report or Azizi's comment.
    As-Safir's report, 8th graf
    
ap-ny-12-11 1258EST
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a205  1001  11 Dec 80
BC-Hostage Rejection,60
BULLETIN
    BEIRUT, Lebanon (AP) - Tehran radio quoted a top Iranian official as
saying Thursday Iran ''will definitely not accept'' a U.S. proposal
to allow the U.S. courts to decide whether the late shah's wealth
belongs to Iran or the shah's heirs - the main stumbling block to
release of the 52 U.S. hostages.
    
ap-ny-12-11 1301EST
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a208  1015  11 Dec 80
BC-Hostage Rejection, 1st Add, a0205,140
URGENT
BEIRUT: U.S. hostages.
    Tehran radio said in its evening newscast that Behzad Nabavi,
adviser to Prime Minister Mohammad Ali Rajai and head of a government
committee handling the hostage crisis, made the comment in an
interview with Iran's official Pars news agency.
    The radio quoted Nabavi as saying Iran had not yet finished its
answer to the latest U.S. proposals for meeting the four conditions
for release of the hostages, who have been held by militant students
in Iran for 404 days.
    He denied a report by Beirut's leftist newspaper As-Safir that Iran
had accepted the U.S. plan, conveyed through Algerian intermediaries
Dec. 4, and would release the hostages on Christmas Day.
    ''Whenever the U.S. accepts the Majlis' (Parliament) conditions and
the Iranian government procedures, we can hope for release of the
hostages,'' he was quoted as saying.
    
ap-ny-12-11 1316EST
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a216  1053  11 Dec 80
BC-Hostage Rejection, 2nd add, a208,260
URGENT
BEIRUT, Lebanon: as saying
    In a telephone interview with The Associated Press, Nabavi's Deputy
Ahmad Azizi, who is the main government spokesman on the hostage
crisis, said the latest U.S. response was ''more positive'' than the
first response Nov. 12.
    He also said the government was studying the proposal to allow the
U.S. courts to decide on the shah's wealth.
    But Nabavi was quoted as saying ''The government of the Islamic
Republic of Iran will definitely not accept the condition of
submitting the case of the wealth of (Shah) Mohammad Reza (Pahlavi) to
the U.S. courts.''
    The Iranian government expressed dissatisfaction with the first U.S.
response to Iran's conditions for release of the hostages. Asked when
the hostages would be freed, Azizi said:
    ''We still do not know. When we give the U.S. our reply, it will be
known. We are now in the process of answering the U.S. and I do not
think it will take very long.''
    U.S. officials have said they would have no trouble meeting two of
the four conditions set by the Parliament Nov.2: the freeing of
Iranian assets in U.S. banks and pledging non-interference in Iran's
internal affairs.
    But Iran's demand for return of the shah's wealth was said to have
been in conflict with U.S. laws, making compliance impossible.
    The fourth condition, that the United States ensure all lawsuits
against Iran will be dropped, is also believed to be a problem because
the United States cannot force - but only influence - private firms
that lost property in Iran during the revolution to drop their court
actions.
    
ap-ny-12-11 1353EST
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a217  1056  11 Dec 80
BC-Hostage Rejection, Insert, a205,40
BEIRUT, Lebanon Insert after 2nd graf
    In Washington, U.S. officials informed of the report said there
would be no comment on the hostage situation until Iran sent a reply
via the Algerian intermediaries who have been relaying messages
between the two nations.
    The radio: 3rd graf
    
ap-ny-12-11 1356EST
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a222  1117  11 Dec 80
AM-People,450
People in the News
Laserphoto NY38
    MEMPHIS, Tenn. (AP) - A probate judge has given a lawyer for Elvis
Presley's 12-year-old daughter the right to inspect financial records
of her father's estate's dealings with Presley's manager, Col. Tom
Parker.
    Blanchard E. Tual, lawyer for Lisa Marie Presley, won the expanded
powers from Probate Judge Joseph Evans in a ruling Wednesday over
protests from D. Beecher Smith III, attorney for executors of the
Presley estate.
    ''The estate has, in many ways, been living in the Middle Ages,''
Tual said. ''Until six months ago, Col. Parker, like the popes, ruled
supreme.''
    Tual was appointed by Evans in May to look after Miss Presley's
interests after executors of Presley's estate - including Mrs. Presley
- asked the court to approve a management agreement with Parker.
    In September, Tual filed a 52-page report critical of the agreement.
    Parker's fee, which Tual called exorbitant and unreasonable, stemmed
from a 1963 agreement calling for him to receive half of Presley's
income in return for exclusive services as manager and adviser.
    Tual also said Parker collected all the money coming to the estate
from record and music sales, movies and mementos, took his share and
forwarded the estate's portion.
    ''There has not been any annual accounting or audit of Parker as the
executors have relied on the accuracy of his statements,'' Tual
wrote.
    ---
    NICE, France (AP) - Former world driving champion Jody Scheckter,
after spending a night in jail, was formally charged Thursday with
assault and battery following an incident with a car driver.
    The 30-year-old South African, now residing in Monaco, was freed and
is to appear in court here Jan. 7.
    Police alleged he rammed a car several times, then stopped and
punched the driver.
    ---
    COLUMBUS, Ohio (AP) - Former state Rep. Phale D. Hale has gone to
Iran in an effort to gain release of the U.S. hostages, The Columbus
Citizen-Journal reported Thursday.
    Hale, a Columbus clergyman, left Monday with at least three other
ministers, all of whom are members of a national organization, the
Sunday School and Baptist Training Union Congress, the newspaper said.
    The other ministers are the Rev. Lehman Bates of the First Baptist
Church of Marshall Heights in Washington D.C.; Dr. E.A. Freeman,
pastor of the First Baptist Church of Kansas City, Kan.; and Dr.
Michael Bates, a prison chaplin, the paper reported.
    Hale, 66, served 14 years in the Ohio House before he resigned in
April.
    According to the Citizen-Journal, Mrs. Hale said the group of
clergymen began planning the trip last summer with the help of some
Moslems who she would not identify.
    Mrs. Hale told the newspaper she has not heard from her husband
since Monday.
    ''My husband's whole motive for this is to help, if there's a chance
he can help,'' she said.
    
ap-ny-12-11 1417EST
**********

n999  1256  11 Dec 80
. . .
ibx ny
a039
r i czczyvqyv
AM-BREZHNEV
Brezhnev Concludes His Visit to India
By MICHAEL T. KAUFMAN
c. 1980 N.Y. Times News Service
     NEW DELHI, India - President Leonid I. Brezhnev returned to Moscow
Thursday, leaving behind a joint declaration in which he and Prime
Minister Indira Gandhi stated the opposition of their countries to
''outside interference in the internal affairs'' of the countries of
Southwest Asia, a region that includes Afghanistan.
     Brezhnev, whose country has 85,000 troops in Afghanistan, had left
by the time the declaration was released, having been sped to the
airport by a route that for security reasons was kept secret until
departure and having been saluted with fusillades and martial tunes.
     For the most part, the seven-page document extolled the cooperation
and friendship of the two countries, citing shared views on the need
for disarmament, nuclear control and peace. The declaration extolled
new agreements that expanded technological and trade relationships
established over decades.
     Except for a single paragraph, the document revealed the intent of
at least its Indian drafters to steer clear of controversy.
    For example, except for Israel, which is called upon to relinquish
its occuppied territories, no other nation is mentioned critically.
    There was a call for ''the dismantling of all foreign military and
naval bases'' in the Indian Ocean, including Diego Garcia, site of a
U.S. naval base. But the United States was not mentioned.
     The one controversial exception was a paragraph dealing with
Southwest Asia where it said, ''India and the Soviet Union reiterate
their opposition to all forms of outside interference in the internal
affairs of the countries of the region.''
    It has been Moscow's position that it sent troops to Afghanistan in
response to the request of the legitimate government in Kabul.
Similarly, the Soviets have insisted that their presence in
Afghanistan is still necessary because of what they say are
Western-aided fighters who cross from sanctuaries in Pakistan.
     Previously, India has deplored the Soviet intervention, although it
has abstained on votes condemning Moscow in the United Nations.
     According to several observers, the paragraph that links the two
countries in opposition to foreign meddling in the Afghan region is a
victory for Soviet negotiators. On the other hand, the United News of
India, one of the country's two news agencies, concluded that ''the
absence of a direct reference to Afghanistan is seen as indicative of
differing perceptions of the two countries on this major world
issue.''
     By referring to the region alone, the drafters succeeded in melding
the Afghan problems with those of Iraq and Iran and the Persian Gulf.
    The key paragraph concluded by asserting that India and the Soviet
Union ''are confident that negotiated political solution alone can
guarantee a durable settlement of the existing problems of the
region.''
     In an another part of the joint declaration, both countries
expressed the view that ''the highest priority facing the world today
is the cessation of the arms race, above all in nuclear weapons.''
    India, which exploded an atomic bomb in 1974, has refused to sign
the nuclear nonproliferation treaty on the grounds that it
discriminates between members and nonmembers of the nuclear club.
However, in the declaration the Indians joined with the Soviets in
declaring readiness to cooperate with each other and with all other
countries to work toward ''general and complete disarmament under
effective international control.''
    
nyt-12-11-80 1555est
**********

a247  1452  11 Dec 80
AM-Brezhnev-India, Bjt,460
Soviet, Indian Leaders Call for 'Zone of Peace'
BY JAMES W. HATTON
Associated Press Writer
    NEW DELHI, India (AP) - India and the Soviet Union on Thursday urged
that the Indian Ocean be declared a ''zone of peace'' and all foreign
military bases in the area be dismantled. They said Diego Garcia
Island, where the United States has naval facilities, should be
returned to Mauritius.
    Noticeably absent from the joint declaration, made public shortly
after Soviet President Leonid I. Brezhnev ended a three-day visit, was
any specific reference to Afghanistan, one area of contention in the
otherwise comfortable relations between the two countries. Soviet
forces have been fighting Moslem rebels there since last December.
    The declaration said India and the Soviet union ''support the
decision of the U.N. General Assembly to hold a conference'' on
declaring the Indian Ocean a zone of peace. The ocean has become
crowded with American, French, British and Soviet warships since the
outbreak of the war in late September between the two Middle East oil
giants, Iran and Iraq.
    India and the Soviet Union urged ''the dismantling of all foreign
military and naval bases existing in the area, such as Diego Garcia,
for preventing the creation of new bases and condemn any attempts to
build up foreign military presence in the Indian Ocean under any
pretext whatsoever.''
    ''They support the just demand of Mauritius for the return of the
Chagos Archipelago including the island of Diego Garcia,'' the
declaration added.
    On Wednesday, Brezhnev offered a similar plan to turn the Persian
Gulf into a militarily neutral zone.
    In Washington, D.C., on Thursday, the State Department informally
rejected that idea, and in Brussels, Belgium, Secretary of State
Edmund S. Muskie described Brezhnev's Persian Gulf plan as ''the fox
in the chicken coop proposals.''
    ''What he (Brezhnev) is saying to us in effect now,'' Muskie told
reporters, is ''if you people just leave the Gulf, forget your bases,
eliminate your navies, just leave the Gulf in our hands, we will
protect your security interests.''
    In rejecting the proposal for a militarily neutral Persian Gulf,
State Department spokesman Jack Cannon said: ''They (the Soviets) have
not moved their troops out of Afghanistan. All other things will have
to wait such a development.''
    The joint statement did not mention oil. But the Indian government
announced that the Soviet Union would supply it with an additional 7
million barrels of crude and 2.5 million barrels of petroleum products
in 1981.
    India sought the additional supplies because the Iran-Iraq war has
cut off most of the oil from those two countries. Before the war,
India received about 60 percent of its imported oil from Iran and
Iraq.
    
ap-ny-12-11 1753EST
**********

n999  1502  11 Dec 80
. . .
kbx uu
a053
r k czcwyfzyv
BC-MCGRORY-COLUMN Adv14
(COMMENTARY)
(FOR RELEASE SUN DEC 14)
(NEW YORK TIMES SPECIAL FEATURES MATERIAL; FOR USE BY SPECIAL
ARRANGEMENT ONLY)
By MARY McGRORY
c. 1980 Washington Star Syndicate
     WASHINGTON -The boardroom of the American Enterprise Institute was
packed to the walls. Was there a sudden surge of interest in the
subject of ''The Hobbes Problem: Order, Legitimacy and Authority in
Central America''? Probably not. The magnet was Jeane Kirkpatrick,
the Georgetown political science professor who is rumored to be on
her way straight to the top in a Reagan administration - as high as
undersecretary for political affairs, it is said.
     There was the chance that she would give some inside word on El
Salvador, the small, bleeding country which may be the first test of
Ronald Reagan's attitude toward human rights and Latin America.
Others may have been attracted by the hope that Ms. Kirkpatrick would
define ''moderately repressive regimes,'' the phrase she used to
suggest the kind of governments we should be friendly to if they were
friendly to us. The words had sent a chill through the human rights
community.
    But Ms. Kirkpatrick, who was previously active in the Democratic
Party, was all professor. She mentioned El Salvador as the kind of
''weak government'' of which Thomas Hobbes so thoroughly disapproved.
But, perhaps mindful of public chidings of Richard Allen, the Reagan
transition biggie, she kept to the abstract.
    Her speaking style is notably emphatic, almost hectoring. She pounds
hard on every other word, and stretches out polysyllables to the
length of the last letter. It made one anticipatorily sympathetic for
those State Department aides who may be subject to daily briefings -
particularly those who might be hung over after offical attendance at
Liberation Day celebrations of small countries.
    She described El Salvador, where six leftist leaders and four
American women, including three nuns, were brutally murdered within
the last two weeks as ''a prototype, almost a caricature'' of untidy
Latin-style ''regime instability.''
    So to find out Ms. Kirkpatrick's notions of ''moderately repressive
regimes'' it is necessary to go back to the November 1979 issue of
Commentary magazine, the neoconservative monthly, and ''Dictatorships
and Double Standards,'' the article that made Ronald Reagan her fan.
     Not to keep you in suspense, the two countries which Ms.
Kirkpatrick regards as ''moderately repressive'' are Iran and
Nicaragua. To her, the fall of the shah and Somoza were tragic.
    Here is the case for having continued the support we lavished on
these two ''legitimate governments'' - until their people rose up and
threw them out. Ms. Kirkpatrick cites close Communist ties of
insurgent leaders, although in Iran, this was not so.
    ''Both Somoza and the shah enjoyed long tenure, large personal
fortunes (much of which were no doubt appropriated from general
revenues) and good relations with the U.S. The shah and Somoza were
not only anti-Communist, they were positively friendly to the U.S.,
sending their sons and others to be educated in our universities,
voting with us in the U.N. ...''
    Read on:
    ''The embassies of both governments were active in Washington social
life, and were frequented by powerful Americans who occupied major
roles in this nation's diplomatic, military and political life...''
    This was, of course, especially true of the Iranian Embassy during
the tenure of Ambassador Ardeshir Zahedi. But to elevate a taste for
caviar - only the best was served - into a reason for condoning
repression and torture seems a bit much, and does not take into
account the notable absence of social consciousness in certain areas
of Washington social life.
    But the operative theme of Ms. Kirkpatrick's discussion is that a
nation should be judged not by the way it treats its own people but
the way it treats us. In her view, Jimmy Carter is to be blamed for
assisting into being regimes that are just as repressive as those
they replaced - and hostile to us in the bargain.
    Conservatives prefer to talk about human rights in a Soviet context.
Patt Derian, the outgoing human rights State Department
undersecretary and friend of the world's political prisoners, says
that friends of ''moderately repressive regimes'' reproached her for
always ''bellyaching about Latin America.''
    There will be none of that from now on. Ms. Kirkpatrick's comfort
for oppressed people is that they should settle for legitimate
governments, with leaders ''who do not disturb the habitual rhythms
of work and leisure ... habitual patterns of family life.''
    ''Because the miseries of traditional life are familiar, they are
bearable to ordinary people ...'' she concludes.
    We'll see.
    To purchase the above material call The New York Times Syndication
Sales Corp., Jesse Levine or Dan Barber, in New York (212) 972-1070
(telex 640-198).
    
nyt-12-11-80 1802est
**********

a249  1512  11 Dec 80
AM-Shariati, Bjt,640
Defense of Home Issue in Murder Trial of Iranian
Laserphoto DX4
By ANDREW ROSENTHAL
Associated Press Writer
    DENVER (AP) - In a case that stems from a wave of anti-Iranian
feeling 13 months ago, a jury is being asked to decide whether an
Iranian student who shot and killed a teen-ager acted in desperate
defense of his home or in reckless disregard for life.
    Public interest in the case remains high in Colorado where, as in
much of the American West, the use of a gun to defend one's home long
has been considered an intrinsic right.
    The shooting occurred Nov. 11, 1979, at the height of anti-Iranian
sentiment following the seizure of the U.S. Embassy in Tehran a week
earlier. The case took more than a year to reach trial this week in
Denver District Court because of a defense attorney's scheduling
conflicts.
    Afshin Shariati, 21, who is married to an American, is on trial for
second-degree murder in the death of Paul Moritzky, 15, of Denver.
    Shariati also is being tried on two counts of first-degree assault
and two counts of attempted murder in the wounding of Michael Lopez,
17, and Steve Roane, 18.
    The boys allegedly were among a group of teen-agers who police say
armed themselves with baseball bats and ax handles and left a high
school party to seek revenge against Iranians for the embassy seizure.
    Lopez said in court that he and the two other teen-agers were
looking for Iranians to ''hassle.'' Prosecutors contend they went to
an apartment building where they thought Iranians lived and spotted
Shariati's name on a mailbox.
    In testimony this week, Lopez described how he, Roane and Moritsky
positioned themselves on a balcony beside a window of Shariati's
third-floor apartment and on the count of three smashed it with
baseball bats and an ax handle.
    Asked by defense attorney Walter Gerash if he expected anyone to
respond with a rifle, Lopez replied, ''If I had, I never would have
done it.''
    Gerash contends Shariati thought he was being attacked with a bomb,
ran from his apartment with a rifle and fired two shots in haste. He
contends Shariati was shooting at what he believed was a getaway car
in a parking lot and that an ''unlucky shot'' felled Mortizky and a
second shot by chance wounded Lopez and Roane.
    Prosecutors contend Shariati acted recklessly. They claim he had
time to take careful aim, deliberately shot Mortizky and then turned
his hunting rifle on the other two teen-agers.
    Lopez and Roane were charged in Juvenile Court with criminal
mischief. The charges against Lopez were dismissed. Roane has pleaded
guilty and is awaiting disposition of his case.
    District Attorney Dale Tooley contended in his opening statement
that what the three youths did was ''100 percent wrong,'' but that
Shariati's response was equally wrong.
    During the week-long jury selection, Gerash repeatedly questioned
potential jurors on their views about a person's right to defend his
home. One man, who later was excused, said he would not convict
Shariati even if it had been his own son who was killed.
    Gerash apparently suffered a reversal when one of his own witnesses
testified Wednesday that he ''had no difficulty seeing'' in the
parking lot where the three youths were shot.
    The witness, Todd Vinzant, 19, said he was among the group that left
the party to seek out Iranians, but did not take part in the attack
on Shariati's apartment.
    Gerash apparently had expected Vinzant to testify that darkness made
the parking lot invisible. If Shariati wasn't knowingly shooting to
kill, the most he could be convicted of is manslaughter.
    In testimony Thursday, Donna Bane, who lived in Shariati's building,
described seeing Shariati rush from his apartment, shoulder a rifle,
wait three or four seconds, and fire the first shot. He then lowered
the rifle a bit, waited three or four more seconds, and fired the
second shot, she said.
    
ap-ny-12-11 1813EST
**********

a257  1614  11 Dec 80
AM-War Rdp,350
Saudi Mediator Predicts Peace in Six Weeks
By KATE DORIAN
Associated Press Writer
    BEIRUT, Lebanon (AP) - A Saudi Arabian prince trying to mediate the
Iraq-Iran war said Thursday he believes peace may be achieved within
six weeks. But there were no signs from either warring nation to
support his expectation.
    Crown Prince Fahd made his comment in a statement broadcast by the
Saudi state radio. He said he believes the war will end before an
Islamic summit conference is held in Mecca on Jan. 24. He has made
visits to Baghdad and Tehran in an effort to bring about a cease-fire.
    As both Persian Gulf nations stepped up attacks on each other's oil
facilities, the petroleum squeeze apparently was being felt in Iraq
as well as Iran. Iraq's interior minister, Sadoun Shaker, ordered
fuel-saving restrictions under which privately owned cars may be used
on alternate days according to their odd or even license plate
numbers, effective Saturday. Only diplomatic cars are exempt.
    Iran rationed basic commodities and electricity and banned the use
of private cars more than a month ago.
    Iran said its fighter-bombers raided Iraq's oil nerve center at
Kirkuk for the second time in three days. Iraq said it killed 245
Iranian troops trying to break a nine-week Iraqi siege of Iran's oil
refining city of Abadan.
    Iranian communiques also reported heavy combat in the Abadan sector
of the 81-day-old war on the northern tip of the gulf, claiming 70
Iraqi troops killed in a ''large-scale surprise attack'' backed by
bombing jets and rocket-firing helicopter gunships.
    Iran claimed 192 Iraqis were killed in dawn-to-dusk fighting on all
fronts, and listed its own losses as four men killed. It claimed one
Soviet-made Iraqi MiG jetfighter was downed when Iraqi planes raided
Iranian oil centers north and south of Abadan.
    Abadan, whose giant oil refinery provided 60 percent of Iran's
pre-war fuel needs, is the last major Iranian stronghold on the
eastern shore of the Shatt al-Arab border waterway, Iraq's only sea
outlet. Iraq seeks sovereignty over all of the Shatt al-Arab rather
than a midstream border under a 1975 treaty it scrapped before sending
troops into Iran in late September.
    
ap-ny-12-11 1915EST
**********

a259  1631  11 Dec 80
AM-Hostages,430
Tehran Radio Says U.S. Hostage Plan Has Been Rejected
    BEIRUT, Lebanon (AP) - Tehran Radio quoted a top Iranian official as
saying Thursday that Iran has rejected a U.S. plan to settle the
dispute over the late shah's fortune - the major obstacle to release
of the 52 American hostages. U.S. officials said they had received no
word from the Iranians or Algerian intermediaries.
    Behzad Nabavi, head of the Iranian committee in charge of the
hostage problem, said Iran ''will definitely not accept'' an American
proposal to allow U.S. courts to decide whether the late shah's
wealth belongs to Iran or the shah's heirs, according to the radio. It
quoted an interview by Iran's official Pars news agency.
    Secretary of State Edmund S. Muskie, questioned about the report by
journalists at the NATO ministers meeting in Belgium, said there had
been ''no new developments'' in the hostage situation.
    Muskie added: ''If I were to put together a compendium of the public
statements made by the various public figures in Iran about their
discussions or proposals to end the hostage crisis and put them beside
the actual messages we have received, you would understand that every
time I'm asked such a question I say we will wait to respond when we
get their response.''
    Muskie was asked if there had been any new signals from the Iranians
since the latest U.S.-Iranian exchanges on the hostage issue. He
replied there had been none.
    In Washington, other U.S. officials informed of the report said
there would be no comment until there was a reply from Iran. They said
they did not know when Algerian intermediaries would relay the
Iranian response to the State Department.
    Tehran Radio quoted Nabavi, who is an adviser to Iranian Prime
Minister Mohammad Ali Rajai, as saying Iran had not yet concluded its
answer to the latest U.S. proposals for meeting the four conditions
for the hostages' freedom.
    He denied a report by Beirut's leftist newspaper As-Safir that Iran
had accepted the plan conveyed through Algerian intermediaries Dec. 4
and would release the hostages on Christmas Day.
    U.S. officials say two of the four Iranian terms for the hostages'
freedom pose no problem - a U.S. pledge of non-intervention in Iranian
affairs and release of frozen Iranian funds from U.S. banks.
    A third demand - withdrawal of all private lawsuits against Iran -
is more difficult because the U.S. government cannot force private
firms that lost property in Iran during the revolution to drop their
court actions. That term, however, is open at least to discussion with
the U.S. firms.
    The demand for return of the late shah's wealth, however, conflicts
with U.S. laws and makes compliance virtually impossible.
    
ap-ny-12-11 1931EST
**********

a289  2034  11 Dec 80
AM-Gas Prices,240
Study Says Gulf War Could Bring Gas Rise of 40 Cents a Gallon
    WASHINGTON (AP) - The direct and indirect effects of the Iran-Iraq
war could increase U.S. gasoline prices by 40 to 45 cents a gallon by
next summer, according to a congressional analysis made public
Thursday.
    The analysis, prepared by the Congressional Research Service of the
Library of Congress, blamed rising crude-oil prices, tighter
supplies, continued oil stockpiling and the recouping of company
profits lost during this year's gasoline glut.
    The projection was based on Iran and Iraq ending their war by next
spring and beginning to rebuild their oil exports.
    ''A continuation of the war into spring 1981 and beyond will likely
render these figures invalid,'' the study warned.
    The Iran-Iraq war pulled 4 million barrels of crude oil a day off
the world market, but the study said that because of increased
productions elsewhere and other factors, the total shortfall from the
war is really 400,000 to 1.4 million barrels a day.
    The world oil price was about $32.50 a barrel before the Iran-Iraq
war, and the Organization of Petroleum Exporting Countries had been
expected to boost the price $2 a barrel at the start of 1981, the
report said. But now, ''rather than this modest increase, a notably
sharper one should be anticipated . . . in a market where countries
previously dependent on Iran and Iraq scramble to make up supplies on
the spot market,'' the study said.
    According to the study, an ''informed, best-guess reaction to the
present situation'' would indicate prices of $38 to $40 a barrel next
year.
    
ap-ny-12-11 2335EST
**********

a903  2112  11 Dec 80
BC-Yearend-Deaths, Adv 80,800
$adv 80
For Release In Yearend Editions
The Deaths Of 1980: The Shah, A Beatle, And Many Less Well Known
By ELLEN NIMMONS
Associated Press Writer
    Their names were not famous: Harold Lewis, Lyn McIntosh, Richard
Bakke, Charles McMillian, Joel C. Mayo, George M. Holmes Jr., John
Davis Harvey and Dewey L. Johnson.
    But those eight men are as much a part of history as Mohammed Reza
Pahlavi, the ousted shah of Iran. They were the U.S. servicemen killed
on an Iranian salt desert in the abortive mission to rescue the
American hostages in Tehran.
    Like the shah, the servicemen died in 1980. They will be remembered
by family and country.
    But the world will remember former Beatle John Lennon, the
singer-songwriter-author who was assassinated in New York City at age
40, ending forever fans' hopes that the Beatles might be reunited
just one more time: The Beatles were truly no more.
    The year also brought the deaths of communists - like Josip Broz
Tito, who led an independent Yugoslavia for 35 years; dictators -
among them deposed Nicaraguan leader Anastasio Somoza, cut down in a
spray of bullets; and great democrats like William O. Douglas,
longtime U.S. Supreme Court associate justice and champion of dissent.
    In 1980, organized labor in the United States lost its single most
powerful force, the AFL-CIO's George Meany. Washington bid goodbye to
Alice Roosevelt Longworth, daughter of Theodore Roosevelt, GOP gra de
dame and a rapier wit known for such remarks as: ''If you haven't got
anything nice to say about anybody, come, sit next to me.''
    Alfred Hitchcock, the director of films that made millions sweat,
jump and shiver; Jimmy Durante, a comedian whose bulbous nose became a
trademark; Mae West, bawdy queen of the double entendre, and George
Raft, a film star tough-guy and dancer, all died as octogenarians.
    But the careers of two other top actors - Steve McQueen and Peter
Sellers - were cut short: McQueen died at 50 of a heart attack after
surgery for the cancer that had ravaged his body; Sellers succumbed at
54 after a third major heart attack in 16 years.
    Two men, already known in some circles for their work, became more
famous when they were fatally shot: Allard K. Lowenstein, a former
congressman and civil rights activist, and Scarsdale Diet developer
Dr. Herman Tarnower.
    And French novelist Romain Gary, ex-husband of actress Jean Seberg -
who he said killed herself because a rumor planted by the FBI caused
the premature birth and death of their child - died of a
self-inflicted gunshot wound.
    Others who died in 1980 had names that were symbols in themselves -
Jack Schwab, Hollywood drugstore owner; Arthur C. Nielsen, the man
behind the TV ratings; David Burpee, head of the mail-order seed
company; and Sue Kerr Hicks, the original ''Boy Named Sue.''
    The year brought the deaths of philosophers and social activists,
men and women who influenced Western thought: Jean-Paul Sartre, the
existentialist philosopher; Erich Fromm, a social philosopher, author
and psychoanalyst; Jean Piaget, the child psychology pioneer, and
Dorothy Day, a founder of the Catholic Worker Movement who started
many settlement houses for the poor and homeless.
    Many political leaders of the past, and some of the present, died in
1980: Helen Gahagan Douglas, actress and former congresswoman who
lost a bitter U.S. Senate race to Richard Nixon; John W. McCormack,
longtime speaker of the U.S. House; Masayoshi Ohira, the Japanese
prime minister; and Maine's James B. Longley, who died of cancer eight
months after leaving office as the nation's only independent party
governor.
    There were many others who died, among them:
    -Photographer Cecil Beaton, designer Anne Fogarty and Wilhemina, a
model who appeared on 28 Vogue covers and ran a modeling agency.
    -Jesse Owens, the black track star whose four gold medals in the
1936 Olympics denied Adolf Hitler's theories of Aryan superiority;
Jacqueline Cochran, record-breaking aviator who became the first woman
to fly faster than the speed of sound.
    -Henry Miller, author of sexually explicit and much-banned novels
such as the ''Tropic of Cancer;'' Katherine Anne Porter, short-story
writer and novelist who wrote ''Ship of Fools.''
    -David Janssen, who eluded capture and won record TV ratings of the
day as ''The Fugitive;'' Jack Bailey, the host who crowned many a
housewife's head on television's ''Queen for a Day;'' Rachel Roberts,
an actress once married to Rex Harrison.
    -Richard Rodgers, famed composer of such Broadway hits as ''South
Pacific,'' ''Oklahoma!'' and ''The Sound of Music;'' Gower Champion,
dancer and director whose death was announced only after the opening
night performance of his last Broadway show, ''42nd Street.''
    -Jane Froman and Lillian Roth, actress-singers whose lives were the
basis for films starring Susan Hayward - ''With A Song In My Heart''
depicting Miss Froman's recovery from serious injuries, and ''I'll
Cry Tomorrow'' telling of Miss Roth's fight against mental illness and
alcoholism.
    -Jay Silverheels, the ''faithful Indian companion, Tonto,'' to TV's
Lone Ranger; and Renaldo Duncan, ''The Cisco Kid'' on television in
the 1950s.
    End Adv For Yearend Editions
    
ap-ny-12-12 0013EST
**********

a016  2343  11 Dec 80
PM-Washington Briefs,420
    WASHINGTON (AP) - The government says a spot check of emissions led
to the recall of more than 570,000 General Motors 1979 model
automobiles.
    Vehicle models included in the recall order are the Pontiac LeMans,
Grand Am, Grand Prix, Catalina, Bonneville and Firebird, the
Environmental Protection Agency said Thursday. Also included are the
Buick Century, Regal and LeSabre and the Oldsmobile 98.
    The EPA said it ordered the recall and repairs because the spot
check showed those vehicles were exceeding the limit on nitrogen oxide
emissions by 35 percent.
    ---
    WASHINGTON (AP) - The Senate has rejected a move to give the 52
American hostages in Iran a special bonus that would have amounted to
about $40,000 per captive already.
    Sen. Mark Hatfield, R-Ore., said he proposed the $100-per-day bonus
as a ''Christmas present'' for the Americans when they are released.
They have been held in captivity since Nov. 4, 1979.
    By a 44-35 vote, the Senate decided Thursday not to consider the
special bonus at this time.
    ---
    WASHINGTON (AP) - Jeno Paulucci of New York City, head of a
nationwide chain of pizza restaurants, is leading an eight-member
American delegation to Italy to explore the best ways to use $50
million in U.S. aid earmarked for the victims of Italy's recent
earthquake.
    The delegation sent by President Carter will confer with Italian
government officials and others involved in the relief effort, the
government announced Thursday.
    ---
    WASHINGTON (AP) - Frank Carlucci, now a top CIA official, may be in
line to become the No. 2 man in the Defense Department, congressional
and other sources say.
    Defense secretary-designate Caspar Weinberger wants to have the
50-year-old Carlucci as deputy defense secretary, the sources say.
    ---
    WASHINGTON (AP) - The Pentagon says it's trying to find out whether
''several million transistors'' that were delivered without receiving
the proper tests are now causing problems for U.S. weapons systems.
    The Pentagon said Thursday the transistors were received over a
three-year period from the Fairchild Semiconductor Division of
Fairchild Camera and Instrument Corp.
    The Pentagon added it doesn't know of ''any failures of equipment''
caused by the transistors.
    ---
    WASHINGTON (AP) - Ronald Reagan's inaugural committee expects the
sales of special commemorative medals bearing the incoming president's
likeness will be the biggest money-raiser for defraying the cost of
the four days of celebrations in January.
    Cost of the 14-karat gold medal will be $975, while the silver
medals will sell for $275 and $95 depending on the size. The bronze
version will sell for $25 and copper for $5.
    
ap-ny-12-12 0244EST
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a019  0013  12 Dec 80
PM-Gas Prices, Bjt,580
By WILLIAM KRONHOLM
Associated Press Writer
    WASHINGTON (AP) - Gasoline prices could climb 40 to 45 cents a
gallon by next summer due the Iran-Iraq war, a new congressional
analysis predicts.
    Such a hike is possible even if the conflict ends by spring and the
two Persian Gulf nations begin rebuilding their oil empires, said the
analysis by the Congressional Research Service of the Library of
Congress.
    Tighter supplies will be a major cause of the price increase, not
only in higher prices for crude oil but also in refiners taking
advantage of the tight market to recoup profits lost during this
year's gasoline glut, said the study, released Thursday.
    In addition, the study said, refiners are unlikely to dump their
record inventories on the market - the historical practice, and one
that helps hold down prices - because the war has convinced the
industry that stockpiles are valuable assets and should be conserved.
    ''Gasoline prices might rise by 40 to 45 cents per gallon between
now and mid-1981 if all the components of this increase are
realized,'' the study concluded.
    Before their war, Iran and Iraq were exporting a total of 4 million
barrels of oil a day. But those sales have virtually stopped.
    While the report estimated that the actual impact on global oil
markets of the war is somewhat less - 400,000hto 1.4 .illion barrels a
day - nevertheless ''higher world oil prices will likely result in
the aftermath of the war, even if it ends within the next few
months.''
    The world oil price was about $32.50 per barrel before the Iran-Iraq
war and had been expected to climb $2 per barrel next month. But the
report said that, ''rather than this modest increase, a notably
sharper one should be anticipated ... in a market where countries
previously dependent on Iran and Iraq scramble to make up supplies on
the spot market.''
    The analysis said an ''informed, best-guess reaction to the present
situation'' would put world crude oil prices at $38 to $40 a barrel
next year.
    The analysis said such price increases would add 26 to 31 cents a
gallon to gasoline prices by the middle of next year.
    But that is not the only impact gasoline prices will feel, the study
said.
    Gasoline prices are federally controlled, but refiners can pass on
their cost increases - an action refiners were forced by competition
to forgo during this year's supply glut. That, in turn, cut their
profit margins.
    Federal law, however, allows the refiners to ''bank'' those
allowable increases and impose them later, when the market will bear
them.
    The study says some $8 billion a year in ''banked'' priced increases
have accumulated and are likely to be passed along soon.
    The tighter supplies also will allow refiners to raise their legal
ceiling prices, the report said, for a total impact on gasoline prices
of an estimated $14 billion, or 14 cents a gallon.
    The analysis said refiners now have plentiful stocks of gasoline,
which ordinarily would have held down gasoline prices as refiners
dumped their inventories.
    But the study said the war has changed the oil industry's views of
stockpiles - ''from a liability to be unloaded to a valuable asset
which should be husbanded. ...
    ''They are now seen as becoming too valuable to be dumped,'' the
study said.
    
ap-ny-12-12 0314EST
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n999  0039  12 Dec 80
. . .
ibx cd
a516
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BC-REACT-12-12
    By Henry Trewhitt
    (c) 1980, The Baltimore Sun (Field News Service)
    WASHINGTON - Hypocrisy, the administration said, in rejecting a
Soviet proposal to negotiate foreign powers out of the Indian Ocean
area.
    ''It is ironic,'' a State Department spokesman commented, ''that the
Soviet Union makes such a proposal when the Soviet invasion of
Afghanistan is the chief threat to the security of the region.''
    John F. Cannon, the spokesman, reported Thursday that the department
could find ''no new departures'' in the language of Leonid I.
Brezhnev, the Soviet president, in New Delhi the day before. It all
sounded, he said, like the plan issued last May by the Consultative
Committee of the Warsaw Pact countries.
    Essentially, Brezhnev called for a U.S.-Soviet agreement to forswear
military presence or intervention in the Indian Ocean-Persian Gulf
area. Most of his plan received India's blessing through a communique
issued Thursday.
    Among other things it urged the United States, in effect, to give up
its growing naval and air base on Diego Garcia, a British island
2,500 miles from the Persian Gulf. By implication it urged the United
States not to take up its options on military facilities in Oman,
Somalia and Kenya.
    ''This proposal cannot be regarded as constructive,'' Cannon said.
''We don't plan to get into discussion with the Soviets on the basis
of this proposal'' while Soviet troops are in Afghanistan.
    Privately a senior administration official described the approach as
an illustration of a Soviet foreign policy precept: What's mine is
mine, what's yours is negotiable.
    Clearly aiming a propaganda thrust at the United States, he said,
Brezhnev assumed no political liability for Soviet troops in
Afghanistan or Soviet installations in the Red Sea.
    Worried about the invasion of Afghanistan, instability in Iran, and
the Iran-Iraq war, President Carter has begun to build American naval
power in the region. The United States will fight if necessary, he
has pledged, to protect the oil of the Persian Gulf.
    Brezhnev doubtless was aiming for an audience outside of India, an
administration policymaker said, playing on the strong sentiment of
Persian Gulf states against the intrusion of foreign power.
    However, he doubted that the Soviet appeal would be effective
against the United States, he said, because of general alarm over the
invasion of Afghanistan.
    More specifically, the official speculated, the Soviets probably
want neither the release of the American hostages in Iran nor an
early end to the Iran-Iraq war. The continuation of both situations,
in the administration view, creates new opportunities for Soviet
influence in the area.
    But at the same time, he said, Persian Gulf states are becoming more
aware of their long-term security problem and of their need for a
security relationship with the West.
    ENDIT TREWHITT
    
nyt-12-12-80 0339est
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a026  0108  12 Dec 80
PM-Hostages, Bjt,510
Iran Still Wants Shah's Fortune
By STEVE K. HINDY
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran insists that the U.S. government must
return the shah's fortune in the United States and rejects the
American explanation that only the courts can dispose of it, the
chairman of the Iranian hostage committee says.
    ''The government of the Islamic Republic of Iran will definitely not
accept the condition of submitting the case of the wealth of Mohammad
Reza to the U.S. courts,'' said Behzad Nabavi, an adviser to Prime
Minister Mohammad Ali Rajai and the head of a government committee
handling the hostage crisis.
    His deputy, Ahmad Azizi, confirmed a report in the leftist Beirut
newspaper As-Safir Thursday that the U.S. government proposed freezing
the shah's assets in American banks while the U.S. courts decide if
the money belongs to Iran or the shah's heirs.
    But both Azizi and Nabavi denied As-Safir's report that Iran
accepted the U.S. proposal and that the 52 hostages, who today spent
their 405th day in captivity, might be freed Christmas Day.
    ''Whenever the U.S. accepts the Majlis (Parliament's) conditions and
the Iranian government procedures, we can hope for release of the
hostages,'' Nabavi said in an interview with Iran's official Pars news
agency.
    Azizi, in a telephone interview with The Associated Press in Beirut,
said the latest U.S. response to Iran's conditions, conveyed by
Algerian intermediaries Dec. 4, was ''more positive'' than the first
response Nov. 12.
    Asked when the hostages would be freed, Azizi said, ''We still do
not know. When we give the U.S. our reply, it will be known. We are
now in the process of answering the U.S. and I do not think it will
take very long.''
    U.S. officials in Washington said there would be no comment until
there was a reply from Iran.
    The Majlis announced Nov. 2 the hostages would be freed if the U.S.
government pledged not to interfere in Iran's affairs, released more
than $8 billion in Iranian assets frozen in U.S. banks, canceled all
U.S. lawsuits against Iran and returned the wealth of the late Shah
Mohammad Reza Pahlavi and his nearest relatives.
    Informed sources said last week that the U.S. government raised no
objection to the first two demands. But they said the Carter
administration reiterated it had no jurisdiction over the U.S. courts
and would try to meet the last two demands by helping Iran contest
the lawsuits and locating the whereabouts of that part of the shah's
fortune in the United States.
    Meanwhile, Crown Prince Fahd of Saudi Arabia said he believes the
82-day-old war between Iran and Iraq will end before the Islamic
summit conference is held in Mecca on Jan. 24. The prince has visited
Tehran and Baghdad, the Iraqi capital, in an unsuccessful effort to
bring about a cease-fire.
    Iran and Iraq reported attacks on each other's oil centers again
Thursday. Tehran Radio announced the execution of six Iranians who it
said blew up pipelines, imported arms from Iraq and engaged in other
sabotage. The broadcast said they died before a firing squad in
Ahwaz, capital of Iran's oil-rich Khuzistan Province.
    
ap-ny-12-12 0408EST
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a217  1127  12 Dec 80
AM-People,620
People in the News
Laserphoto NY39
    TALLAHASSEE, Fla. (AP) - After living 92 years, Virgil Conner says
he's learned to pace himself. But that doesn't mean he's slowed down.
    On Saturday, Conner will receive a doctorate degree in history at
Florida State University. He'll be the oldest among 550 students at
the commencement ceremony.
    ''There really is no way to verify it, but it is highly likely that
Mr. Conner is the oldest person in the world to have earned a
doctoral degree,'' says FSU Professor William Rogers. ''He has a
sweeping philosophical grasp of this crazy journey we are on. And even
though he has seen a lot, he still has great faith in man.''
    Conner was born in Arkansas and came to Florida in 1929. ''The year
she busted,'' said Conner, referring to great stock-market crash.
    Conner wrote his dissertation about his grandmother, who drove a
covered wagon with three sons from Mississippi to Arkansas in 1849.
    Conner specializes in U.S. history after 1876 - all but the early
years of his own history.
    His one regret during the long hours of preparing his dissertation
was that he didn't get much exercise, he said.
    ''But now that I've got the dissertation written, I'll be walking
much more,'' he said Thursday in an interview at his apartment here.
    Conner worked near Orlando selling real estate and insurance after
he came to Florida. With his wife of 65 years, he moved here in 1974,
and works for $1 a year for State Rep. Dick Batchelor, a Democrat
from Orlando, researching economic issues.
    ---
    POKHERA, Nepal (AP) - England's Prince Charles emerged Friday from
the rugged countryside after trekking for more than three days in the
foothills of the Himalayan mountains, proclaiming the adventure
''great fun.''
    ''Do I look disgusting enough,'' Charles, who had not shaved his
face during the trek, asked news photographers.
    ''I did some paintings in water color,'' he said, ''but I did not
have much time.''
    He described the scene and sceneries as ''marvelous.''
    Prince Charles was scheduled to row across the Begnas Tal Lake to
Pokhara at the end of his trek. But he emerged from the woods at
mid-morning on foot.
    Charles was accompanied by Prince Dhirendra, youngest brother of
King Birendra of Nepal, and a 13-man royal party and an 11-member
support party. They traveled with 21 Sherpa guides and 90 porters who
carried gear that included Malvern drinking water from England.
    Warwick Hatchings, the Prince's press secretary, said Charles
decided not to skip the lake on Thursday evening because he wanted
more exercise.
    ---
    LOS ANGELES (AP) - Singer Lou Rawls was looking for the roof to his
1970 Mercedes-Benz Friday after it disappeared while he ate dinner in
a West Los Angeles restaurant.
    Police said Rawls reported he parked the car outside the restaurant
and when he returned to the automobile about midnight Thursday he
found the right door handle missing and the car broken into.
    The culprit unlatched the $3,000 roof from the inside and lifted it
off.
    ---
    SAN DIEGO (AP) - For the first time since August, Richard Morefield,
one of the Americans held hostage in Iran, has written hixne, his wife says.
    The letter from the consul general to the U.S. Embassy in Teheran,
arrived at the family home on Thursday.
    ''He's gotten mail, pictures and clippings we've sent,'' Dorothea
Morefield said. ''Above all he sounds well.''
    The letter contained brief messages to each of the five Morefield
children - ages 22 to 14 - and to Morefield's mother.
    ''He refers to a letter that he's written to me, but I haven't
recieved it yet,'' said Mrs. Morefield, adding she would meet Friday
in Washington, D.C., with other hostage families.
    Also Thursday, attorney Paul O'Dwyer, a former New York City Council
president who now represents Iran in claiming the late shah's wealth,
predicted the hostages could be home by Christmas.
    ''The vibes are good,'' O'Dwyer said.
    
ap-ny-12-12 1428EST
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n999  1206  12 Dec 80
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BC-REAGAN
(Newhouse 007)
By ROBERT G. FICHENBERG
Newhouse News Service
    WASHINGTON - Once Ronald Reagan is in the White House, Americans
will find him a natural executive who delegates responsibility
easily, has no problem understanding complex issues, and makes
difficult decisions without delay.
    This is the opinion of Verne Orr, a top Reagan aide when the
president-elect was governor of California, and now a key member of
Reagan's transition team here. On the more personal side, Orr says,
Reagan is ''about the straightest arrow I know.''
    Reagan never uses profanity or tolerates it in his presence, rarely
loses his temper (''about his strongest gesture of anger is to throw
his glasses down on his desk''), becomes very uncomfortable when
heated arguments occur in his presence, and hates to fire people,
according to Orr. And he ''would just die'' if he learned that
someone in his administration made a political decision to favor a
Reagan friend or campaign contributor.
    Orr served successively as head of California's Motor Vehicle,
General Services and Finance departments during Reagan's
governorship. He says frankly that he doesn't expect to join the
Reagan administration in Washington, because he didn't get the job he
wanted (director of the White House's Office of Management and
Budget).
    ''I don't want to become just another paper shuffler in the White
House,'' Orr says. ''They'll have enough of them.''
    He thinks Reagan will adopt a modified version of the ''cabinet
government'' he used as governor. Under this system, Reagan regularly
called in up to six members of his cabinet, plus Edwin Meese III, his
top aide then and now. Sitting in the back of the room would be up to
15 staff assistants from the departments represented, all with
complete freedom to enter the discussion.
    ''Sometimes, frankly, this could become annoying,'' Orr says,
''because the aides could confuse an issue while the department head,
who had all the facts, was making a presentation. But the governor
liked it.''
    For special, sensitive situations, Orr says, small sub-cabinet
groups would be formed.
    Meese's White House title - counselor to the president - does not
fully reflect his personal relationship with Reagan and the power he
will have at the White House. Meese will have Cabinet rank and, in
Orr's words, ''will be first among equals.
    ''He and the president-elect think very much alike. They're very
close personally. Ed Meese will watch very carefully over the
president's time and attempts to usurp it.
    ''Ronald Reagan always was accessible to any member of his (state)
cabinet, and if any member of the president-elect's Cabinet wants to
see him, Ed Meese won't stand in his way.
    ''But I'm also sure that when anyone goes into the Oval Office, Ed
Meese will be there too.''
    As one of those who had to submit the one-page summary memos that
became a Reagan hallmark in Sacramento, Orr says this practice has
been misunderstood.
    ''This doesn't mean,'' he says, ''that Reagan likes everything
reduced to one-page memos. These were 'talking papers' and were
simply summaries of the subject at issue, for use in final
discussions and a decision. They included the arguments for and
against it and the recommendations. This had been preceded by all
sorts of studies and discussions. And obviously subjects like the
(Iran) hostages and a grain embargo aren't going to be reduced to
one-page memos.''
    Reagan will not, like President Carter, spend much time wading
through ''tons of material like 200-page explanations,'' Orr says.
''But he's certainly going to read executive summaries.
    ''He is intelligent, and by that I mean he has the ability to
perceive a problem and make a decision on the basis of the
information presented. He has an excellent mind. He's a very smart
individual, and a quick study.''
    As for Nancy Reagan's role, Orr says, she never got involved in
policy matters in California and he doesn't think she will at the
White House.
    ''I think I had one or two calls from her in all my government
experience at Sacramento. Both were when I was running the Motor
Vehicle Department.
    ''She wanted personal license plates with 000 NDR (for Nancy Davis
Reagan). We had only just started making personalized plates and I
tried to put her off.
    ''She called up later to ask, 'Where are my special plates?'
    ''And I again tried to discourage her, pointing out: 'You know,
you'd be awfully conspicious with them.'
    ''But she insisted, saying: 'I want those plates.' And she got
them.'' RB END FICHENBERG
    
nyt-12-12-80 1506est
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n999  1341  12 Dec 80
. . .
exx uu
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a e czcwyfwyf
BC-TV-TONIGHT (ADV14)
(FOR RELEASE SUN DEC 14)
(NEW YORK TIMES SPECIAL FEATURES MATERIAL; FOR USE ONLY BY SPECIAL
ARRANGEMENT)
By ANN CLINE
c. 1980 Washington Star Syndicate
    WASHINGTON - It's really too bad two of Sunday night's top
possibilities are opposite each other. True, the subject matters are
quite different, but both are worth watching.
    ''The Kidnapping of the President,'' (NBC at 9) is, as you would
suspect from the title, an action-packed, suspense-filled movie. At
the same time on CBS, there is action and suspense, too, but of a
different nature when the 5th annual ''Circus of the Stars'' presents
an assortment of stage, screen and television stars performing in
acts a little out of their leagues.
     Hal Holbrook protrays the part of President Adam Scott, who is
kidnapped by terrorists in Canada, where he has gone on a state
visit. William Shatner, as Deputy Secret Service Director Jerry
O'Connor, warns the president of impending trouble from a radical
South American group, but his warning goes unheeded because the
president is preoccupied with more pressing problems at home with his
vice president, Ethan Richards, played by Van Johnson, and the vice
president has problems with his ambitious wife Beth (Ava Gardner).
    There will be a lot of familiar faces in ''Circus,'' which will come
from Caesars Palace in Las Vegas. The ''Ringmasters'' are Lloyd
Bridges, Rock Hudson, Angela Lansbury and Valerie Perrine. Among the
performing stars are David Nelson, (Ozzie and Harriet's son), who
really is a pro, having formed his own aerial act which he toured
with for five summers; Brooke Shields, doing acrobatics at the top of
a rope; Barbi Benton, who works alone in a cage full of lions; Jayne
Kennedy, the target for a bow and arrow marksman, and Marty Allen,
''the clown prince,'' who will try to do acrobatics on the back of a
galloping horse.
Sunday Press
    ''Face the Nation'' (CBS at 11:30) has as its guest, Felix Rohatyn,
chairman of the Municipal Assistance Corp ... An in-depth discussion
of firearms control will take place on ''Newscenter Forum'' (NBC at
11:30) ... ''Meet the Press'' (NBC at noon) panelists quiz Marshall
Shulman, a leading expert on the Soviet Union ... ''Revista'' (ABC at
1:30) marks the debut of Seven on Your Side host Paul Berry, who
exposes housingrental ripoffs in Spanish ... On ''60 Minutes'' (CBS
at 7) Mike Wallace gives a first-hand report from inside Iran; Morley
Safer explores a modern day tragedy of conflicting generations; and
Harry Reasoner continues his look at ivory ''poachers''.
Sports
    Navy meets Houston in college football's Garden State Bowl
(Syndicated TV at noon) ... St. Louis is in Philadelphia to meet the
Eagles (CBS at 1) ... It's Cleveland vs. Minnesota (NBC at 1),
followed by Oakland at Denver ... For golf fans, the final round of
the ''Mixed Team Golf Classic'' will be aired live from the Bardmoor
Country Club in Largo, Fla. on Channel 9 at 4.
For Children
    Two happy programs, but unfortunately both are on at the same time
''From All of Us to All of You'' is the theme of the merry Christmas
special on ''Disney's Wonderful World'' (NBC at 7), and ''Rudolph's
Shiny New Year'' (ABC at 7) is a repeat of the animated Christmas
special featuring the voices of Red Skelton, Frank Gorshin and Morey
Amsterdam.
Series
    ''CHiPS'' (NBC at 8) settles down to its one hour format, and it's
another kidnapping, only not of a president but of a police officer
(Bonnie Clark) ... Dr. Carl Sagan looks into the prospects of
extraterrestrial civilizations on ''Cosmos,'' public television at 8
... The angels infiltrate a vacationing swinging singles group on
''Charlie's Angels'' (ABC at 8) ... Archie returns to his stubborn
ways on ''Archie Bunker's Place'' (CBS at 8) ... Grandma Romano
(Nanette Fabray) goes on a date and finds life a little more exciting
on ''One Day at a Time'' (CBS at 8:30) ... Helen Reddy headlines
''The Monte Carlo Show'' (Metromedia at 9).
Specials
    A recent winner of three Emmy Awards is ''Beauty and the Beast,''
performed by members of the Fairmount Theater of the Deaf, and you
can see this first original television drama for both deaf and
hearing audiences on public TV at 7.
    The production combines sign language and the spoken word and it is
based on a story published originally in 1756 by Mme. Leprince de
Beaumont, but with a slightly different ending - the Beast doesn't
turn into a handsome prince, but remains ugly to everyone, everyone
that is except the Beauty.
    And a John Lennon Special will be shown on Metromedia at 11 p.m.
Movies
    Citizens discover another ''personality'' when a power blackout
gives them the courage to do things they wouldn't ordinarily do in
''The Night the City Screamed'' (ABC at 9), and ''Ode to Billy Joe,''
with Glynnis O'Connor and Robby Benson, has both joy and sorrow in
its story of a glorious romance that soon ended in disaster.
    To purchase the above material call The New York Times Syndication
Sales Corp., Jesse Levine or Dan Barber, in New York (212) 972-1070
(telex 640-198).
    
nyt-12-12-80 1642est
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a241  1454  12 Dec 80
AM-War Rdp,290
Iran Sends Six 'Collaborators' Before Firing Squad
By KATE DORIAN
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran said Friday it sent before a firing
squad six ''collaborators'' with Iraq. War communiques told of tank
assaults on each other's positions in Iran's southwestern oil province
of Khuzistan and air raids against oil installations on both sides of
the border.
    Both countries reported paratroop battles flared into a third week
for the foothills of the Zagros mountain range 300 miles north of
Khuzistan as the Persian Gulf war completed its 82nd day. Iraq claimed
it killed 23 Iranians in the mountain fighting.
    Iran claimed a total of 192 Iraqi deaths in the Khuzistan fighting
and in the western highlands. Iran said it lost four soldiers, Iraq
acknowledged eight deaths. War claims by both sides cannot be
independently verified because reporters are barred from free movement
on the battlefields.
    The official Iranian news agency Pars said the six men were executed
Thursday in Ahwaz, the provincial capital of Khuzistan. Pars said the
''collaborators'' were tried and convicted of ''blowing up pipelines,
sabotage and importing arms from Iraq.''
    Although the nationalities of the six were not clear, the impression
was that they belonged to Khuzistan's large Arab ethnic community.
Iraq has been calling on Iranian Arabs to ''help your brother Arabs,
your Iraqi liberators.''
    Shortly after the Iraqi invasion of Khuzistan on Sept. 22, Iran
warned the province's Arab community against collaborating with the
Iraqis and set up field courts to try war crimes in Khuzistan, which
Iraq calls Arabistan. At least four other accused collaborators have
been executed.
    Although both are Moslem nations, Iraq is Arab and Iran is
predominantly Persian.
    
ap-ny-12-12 1755EST
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n999  1610  12 Dec 80
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BC-HOSTAGES
Unofficial Reports From Iran Indicate Progress on Hostage Talks
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Administration officials said Friday that they have
received a number of unofficial but positive reports from Tehran
suggesting progress is being made in the discussions on the release
of the 52 American hostages.
    But the officials, who said they have witnessed many ups and downs
in the more than 13 months of the crisis, said that they still
expected the talks, carried on by Iran and the United States through
Algerian intermediaries, to continue for some time longer.
    They also said that until they receive a formal report from the
Algerians, they had no way of judging with accuracy how close the
Iranians and Americans are to an agreement. The Algerians, who have
been in Tehran for 10 days after carrying there the latest five-page
American clarifications to its month-old response to Iran's four
demands, are not expected to complete the current round of
discussions in Tehran before next week, officials said.
    The three-man Algerian team, made up of the head of Algeria's
national bank and its ambassadors to Tehran and Washington, is then
likely to come to Washington to convey the results of their
discussions in Iran.
    It is possible, officials said, that the Iranians may decide in this
round of talks to accept the American position as meeting their four
conditions, thereby opening the way for the actual release of the
hostages in the near future.
    But they said it is just as possible that the Iranians may prolong
the discussions, and raise some additional questions, therey
necessitating further exchanges.
    The general view of senior officials involved in the hostage crisis
is that Iran would like to resolve the matter before President Carter
leaves office on Jan. 20. but since there are more than five weeks
until the, the talks could go into next month.
    Representatives of the families of the hostages have been invited to
Washington this weekend for briefings on the situation, the sixth
time they have been assembled under the auspices of FLAG, the
organization representing the families.
    This meeting was scheduled some time ago to give the families an
up-to-the-minute appraisal before Christmas, and was not the result
of any new developments, officials said.
    One of the more positive signs received here has come from Western
diplomats in Iran who have reported that membes of the Algerian team
were fairly optimistic that a solution would be found.
    The Algerians have been praised extensively by American officials
for their efforts on behalf of the hostages and for the time they
have been willing to spend as go-betweens.
    Some officials here believe that despite the growing sentiment among
senior Iranian authorities to end the crisis, there still are
significant forces in Iran opposed to releasing the hostages. These
opponents, the officials said, are trying to delay resolution of the
crisis by insisting that the Iranian government stick to the letter
of the four conditions made public by Iran's Parliament on Nov. 2.
    The United States has already said that it is willing to go far
toward meeting those onditions but that it cannot meet all of them
literally.
    The Iranians have asked for a pledge of non-interference in Iran's
affairs; the freeing of Iran's frozen assets; the cancellation of all
American claims against Iran; and confiscation and transfer to Iran
of the property of the late shah and his family.
    In particular, the Americans have told the Iranians that the
American legal system does not permit the administration to override
the courts on questions dealing with claims and the shah's property.
    Thursday, a Beirut newspaper, As Safir, ran an article saying that
agreement had been reached in Iran on the hostage crisis and that the
Americans would be released on Christmas Day. This was promptly
denied by Behzad Nabavi, the Iranian official in charge of the
commission handling the hostage question. Nabavi said that talks were
still going on.
    He also said that it was unacceptable to Iran to leave the shah's
property to the American courts.
    Some officials said that those opposed to an agreement may have
planted the story in the Beirut paper to embarrass the government and
force a denial.
    
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n999  2200  12 Dec 80
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BC-OPEC-12-13
    By Andrew Borowiec
    (c) 1980 Chicago Sun-Times (Field News Service)
    NICOSIA, Cyprus - A mood of virtually unprecedented moderation is
shaping up among the potentates of the oil exporting countries.
    These men maneuver billions of barrels of crude and set its price.
The economic health of the Western world depends to a great extent on
their good will-or lack of it.
    The tone was set earlier this week by the Arab producers during a
meeting in Kuwait. And subsequent statements by various oil ministers
reaffirm a desire to keep the price of crude oil frozen for a while.
If necessary, raise it, but only to a level acceptable to the Western
industrial nations.
    Such is the setting before Monday's ministerial meeting of the
Organization of Petroleum Exporting Countries (OPEC) on the
Indonesian island of Bali. It remains to be seen whether the cartel
of 13 members comes up with a concrete plan or whether the ministers
will part without a cohesive policy.
    The moderation shown so far does not stem from OPEC's generosity
toward its Western clients. On the contrary, it shows a considerable
degree of alarm at the current ''oil glut,'' exacerbated by world
recession.
    The glut began in the aftermath of Iran's Islamic Revolution, when
companies and countries began to build massive stockpiles, eventually
reaching 5 billion barrels. The Iranian chaos was only one factor.
The others were expectations of rising prices and oil company
over-estimates of consumption.
    The gulf war between Iran and Iraq, which started in September,
affected the flow of oil to the industrialized West. But, contrary to
dire predictions, the West did not suffer. Although countries such as
Saudi Arabia and Kuwait offered to increase their pumping as a ''war
relief'' gesture, it is believed that the increase was minimal.
    At the end of November, a trickle of oil started flowing from the
war-battered fields of Iran and Iraq through the pipelines to the
Mediterranean. The exact volume is not known. Iraqi oil minister
Tayeh Abdul Karim says his country is pumping more than one million
barrels a day, mainly through Turkey, compared to three million
before the outbreak of the hostilities.
    Some Western experts feel the figure of 400,000 barrels a day is
more realistic.
    Iran, which appears to have suffered more in the war, is exporting
about 100,000 barrels a day-if that. Its two main refineries, at
Abadan and Tabriz, have been paralyzed by damage. So is the pipeline
between Abadan and Tehran.
    What worries Middle Eastern and other producers is the aftermath of
the gulf war. Both Iran and Iraq will need massive injections of
funds to rebuild their shattered industrial installations and cities.
Their only exportable wealth is oil. The raising of their exports to
the pre-conflict levels would further increase the glut-assuming that
the West wants more oil at that stage.
    It is estimated that in order to straighten out its battered
economy, Iran would need to export three million barrels of oil a
day. Assuming the war ends during the next two or three months, such
a target could not be achieved before 1982.
    Iraq is in a much better position. Its installations have suffered
less, it uses two main pipelines, one through Syria (capacity 1.4
million barrels a day) and one through Turkey (700,000 barrels a
day). However, the Syrian route is politically delicate because that
country has supported Iran in the war.
    The big problem is: who will need this oil and who will ptay the
price the producing countries are likely to ask?
    Panic on world markets which triggered massive stockpiling raised
the price of crude from $14 a barrel in January, 1979, to an average
of $33 now. Still, prices vary. Saudi Arabia sells its oil at $30 a
barrel while the nearby United Arab Emirates (UAE) demands $33.56.
    Spot prices also vary, according to demand and political tension.
Thus early in December, a load of Algerian crude sold at Amsterdam
for $43 a barrel.
    OPEC says it has been acting as a stabilizing factor in the oil
price spiral. Without it, the price of crude would have passed the
staggering $100-a-barrel mark, OPEC ministers say.
    The OPEC clients disagree. They see the organization as a dangerous
ca.5el that has wrested much power from Western ''multinationals.''
Although OPEC may decie on6 ne price, its members often set their
own.
    The organization is now in its 21st year. During the past two
decades it asserted control over an estimated 90 percent of the oil
reaching the non-communist world. During that period the price of
crude rose from under $2 to the current average of $33 for a
42-gallon barrel.
    On Sept. 15, OPEC oil ministers met in Vienna and decided on a price
freeze. The freeze did not affect the so-called ''spot prices.''
    Now the tone is being set by Saudi Arabia's urbane Sheikh Ahmed Zaki
Yamani. But even that brilliant Arab oil minister does not always
pursue the same line. One day he advocates a continuation of the
price freeze, on another he speaks of the need for ''an annual
adjustment'' in keeping with Western inflation of about 10 or 11
percent annually.
    There remains, however, the question of the huge stocks and the
diminished consumption due to recession. And Yamani knows it well,
his country being a heavy investor in the West. Yamani's voice is
likely to be the dominant one at the Bali meeting.
    ENDIT BOROWIEC
    
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n999  0244  13 Dec 80
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BC-BUSH-12-13
    ADVANCE FOR SUNDAY
    By David Farrell
    (c) 1980 Boston Globe (Field News Service)
    
    WASHINGTON-Vice President-elect George Bush doesn't think the Sovet
Union is looking for trouble or wants war.
    ''Although at times the Soviets are reckless, they are often
prudent,'' Bush said in an interview at his transition headquarters
on Jackson Place, diagonally across from the White House.
    ''I am rather heartened by the sounds coming out of the Soviet Union
since the election. They indicate a reasonable approach to relations
with the Reagan administration. While the (Sen. Charles) Percy visit
(to Moscow) can be interpreted as nothing more than reading tea
leaves, the outlook for our dealings with the Russians is good, in my
opinion.
    ''All of these messages to Gov. Reagan are in sharp contrast to the
campaign rhetoric that attempted to lead the voters to believe that
if Reagan was elected there would be a confrontation with the
Soviets.''
    Bush said that Reagan would take office ''with sound convictions
about international behavior and the importance of alliances.''
    ''But sometimes,'' he emphasized, ''it is easier for a world power
that is not compatible with us to deal with a predictable power on
policy even though the policy may be opposed to what the other power
feels. Predictability and rationality in foreign policy are very
important, and that will help the peace because there will be less
opportunity for miscalculation.
    ''I am confident that a predictable foreign policy which recognizes
that problems exist will be helpful in making our alliances strong,
particularly in this hemisphere where we have major problems.''
    The former ambassador to the United Nations said the U.S. role in
turmoil-ridden Central America should not be directed towards seeking
confrontation. ''We must project a certain strength and conviction
about democracy and our wanting to be friends with countries there,''
he said. ''And we must project our genuine belief in human rights.
Gov. Reagan has demonstrated his commitment to these ideals.''
    Bush said the tendency in this country to look only at our own
difficulties ignores the fact that the Soviets have their own hands
full in Afghanistan and Poland. Castro isn't helping the situation
either, he said.
    ''Castro is behaving badly from time to time in this hemisphere and
in exporting his brand of government to Africa,'' Bush said. ''The
Soviets, who could slow down the Cuban dictator, are defending a lot
of this and they are wrong.
    ''Yet Russia has shown some restraint by not wanting to get involved
in the Iran-Iraq confrontation. The Soviets have enormous problems
with Poland, China and their own faltering economy.
    ''Our task is to formulate a policy based on a realistic assesssment
of Soviet intentions and strength. I'm pleased that they have sent
out hopeful noises that they want to work with us.''
    On the hostage crisis, Bush said the impasse ''doesn't lend itself
to an easy fix.'' The substantive advances made by the Carter
Administration in its exchanges with Algeria makes him hopeful of a
resolution soon, he said.
    Bush said that one of the goals of the new administration will be to
attract more blacks into GOP ranks during the next four years. This
will be accomplished ''not just in terms of appointments, but in
terms of fair play in programs,'' Bush said.
    ''The fact that Gov. Reagan did not carry the black vote will not
adversely affect our approach towards fair play for all,'' Bush said.
''I think that we ought to expound new ways to deliver our programs,
because I do not think that it is a good idea to just continually go
with the same black political leadership-people who every four years
or every two years are going to be out trying to defeat Republicans.
    ''What we need to find and identify is black leadership that
supports what we are trying to do-I'm talking politics now-so that
the people who just berated Gov. Reagan don't reap the rewards, don't
continue to keep themselves in power by delivering programs or by
having a say on political appointments.''
    Bush said there are''plenty of blacks out there, plenty of
Spanish-speaking people, who were much more open-minded about our
cause.''
    ''So, from a purely political point of view as well as what is fair,
we need some new delivery systems, some new leaders out there, who
will be the liaison with the White House,'' the Vice President-elect
said. ''I feel very strongly about this and I know Gov. Reagan feels
very strongly about this too.''
    Of his own role in the new administration, Bush said, ''Gov. Reagan
has said and done all the right things. He has gone out of his way to
make me feel included, and I hope that some of that is because there
is a growing confidence between us.
    ''It's a human thing. It's a question of him knowing that I'm going
to be there and not having to worry about where I am coming from. I
owe him my best judgment on everything and he is the kind of person
who, if you put forth an idea diametrically opposed to him, he
wouldn't get mad. He respects that, so my role has been, and still
is, to earn that respect. And once that is in place, and I'm
convinced it is now, then there is going to be an excellent
co-relationship.
    ''And I must add that I believe that Walter Mondale has been an
excellent vice president for President Carter.''
    ENDIT FARRELL
    
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a051  0504  13 Dec 80
PM-Iran Hostages,430
Say Iran Suggests New Ways to Meet Hostage Conditions
By The Associated Press
    Iran says America's latest response to its hostage demands was
''basically positive,'' but one official said further indirect
negotiations would be needed before the 52 Americans are freed. The
statement appeared to dim hopes that the hostages would be released
before Christmas.
    Behzad Nabavi, head of a government commission on the hostage
crisis, was quoted in an interview published today as saying Iran is
preparing new suggestions on how the United States can meet its four
conditions for the hostages' release.
    Nabavi's deputy, Ahmed Azizi, was quoted by the official Pars news
agency as saying the U.S. response was ''basically positive.
    Jomhuri e Islami newspaper quoted Nabavi as saying Iran's new
suggestions would be contained in it response to a U.S. message
delivered Dec. 4 by Algerian diplomats.
    ''In the answer we will propose measures to the U.S. government to
implement in relation to solving the issue,'' it quoted Nabavi as
saying, ''and then it will be the turn of the United States to show
concern for the fate of the hostages as it has claimed in the mass
media.''
    Algerians have been in Iran for 10 days waiting to take a response
to Washington. Analysts said the Carter administration probably would
deliberate on any new Iranian proposals, also delaying its response.
    Iran's Parliament, the Majlis, announced Nov. 2 the hostages would
be freed if the U.S. government pledged not to interfere in Iran's
affairs, released more than $8 billion in Iranian assets frozen in
U.S. banks, canceled all U.S. lawsuits against Iran and returned the
wealth of the late Shah Mohammad Reza Pahlavi and his nearest
relatives.
    Nabavi called the Iran's new suggestions ''very reasonable, very
rational and based on the Majlis decision.'' He did not say which of
the four conditions they concerned. But he has said Iran rejected a
proposal in the last U.S. message to let the courts decide if the
shah's wealth held in the United States should be returned to Iran.
    He also has denied press reports the hostages, now in their 14th
month of captivity, would be released in time for Christmas.
    In other developments, Pars said Iranian troops killed or wounded at
least 66 Iraqis today in the western highlands. It gave no Iranian
casualty figures for the fighting, now in its 83rd day. Both countries
claimed tank assaults on each other's positions and renewed paratroop
battles in the southern province of Khuzistan. Iran said Friday it
executed six people for collaborating with Iraq.
    
ap-ny-12-13 0805EST
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a063  0635  13 Dec 80
PM-Koprowski, Adv 19,680
$Adv 19
For Release PMs Fri Dec 19
American Style: Reflections of a Medical Researcher
With Laserphoto
By LEE LINDER
Associated Press Writer
    PHILADELPHIA (AP) - ''Scientists are not God,'' insists a virologist
who developed the world's first oral polio vaccine and who now
directs America's oldest biomedical institute in searching for cures
for cancer, heart disease and multiple sclerosis.
    Dr. Hilary Koprowski, 63, Polish-born head of the Wistar Institute
of Anatomy and Biology at the University of Pennsylvania, said,
''People expect scientists will solve all problems, and that really is
dangerous.''
    Koprowski was the first scientist, in 1950, to feed oral polio
vaccine to a human, although Jonas Salk, with injected vaccine, and
Albert Sabin, with an oral type, gained the international acclaim
years later for wiping out the crippling disease.
    ''I'm not disappointed because the approved vaccines involved a
great deal of public relations, and I find my satisfaction in the
laboratory and not doing public relations,'' he said. ''It is not such
a great tragedy for me, and I am satisfied I laid the groundwork.
    ''When laboratory experimentation is successful that is a great
thrill. It is like writing a poem or composing a sonata.''
    Wistar, founded in 1892 primarily as a museum (which it still
operates) in honor of an early anatomy professor at the university,
confined its work, until Koprowski's arrival 27 years ago, to breeding
albino rats and studying human fertility.
    Today it researches baffling medical problems, and its team of 100
scientists have come up with some life-saving solutions, particularly
new rabies and measles vaccines.
    ''Never can you accomplish everything,'' acknowledged Koprowski, his
hands gesticulating in an expression of frustration as he sat behind
two desks angled at 90 degrees. ''There always remain unfulfilled
things. What is the greatest thrill? I have now perhaps the best group
of capable collaborators. And it is they who are progressing rapidly
in science and are making the institute work.''
    One Wistar team under Dr. Stanley Plotkin developed the German
measles vaccine, which has virtually wiped out rubella. Another group
is studying death, specifically why human cells reproduce themselves
only a certain number of times, making them, in effect, programmed to
die.
    Koprowski and Dr. Tadeusz Wiktor, after 25 years of research,
produced a new rabies vaccine that reduced from 20 to four or five the
number of painful and sometimes paralytic shots administered victims.
They are given in the arm instead of the abdomen.
    ''It was tested five years in Europe, Asia and Iran, and every
person exposed to rabies was saved, and it was finally licensed in the
United States this year,'' Koprowski said.
    But Wistar concentrates its expertise in cancer research. About 60
percent of its study is devoted to attacking one of mankind's greatest
killers.
    ''Before I die, I'd like to pinpoint the specificities of human
cancer cells,'' Koprowski said. ''It's impossible to predict, but I'd
say that in five years there will be enormous progress.''
    Koprowski, who relaxes best at the piano, said he isn't sorry he has
devoted a lifetime to science, or spent most of his working days
peering into a microscope.
    ''Scientists are creators, who derive emminent satisfaction from
their creativity,'' he said. ''No question, but the world is made
better by science. What I object to is that the public will say that
science has to make the world better by 1985. You can't put a date on
scientific achievement.
    ''As with all creators, something may work very well, something may
go badly. Some creativity which is purely academic may not become
enormously useful until later. When the scientist created it he
considered it academic. But in 10 years he may find out that it is a
great achievement.''
    ''These things happen frequently,'' he continued. ''The public
shouldn't put the blame on science, and say, 'Why didn't you do it at
once?'
    ''Polio is a good example. Polio virus was first isolated in 1906.
The first vaccine, my vaccine, was 1950, that was 44 years later.
Sometimes there are no results, and sometimes there are results. If
you operate on 50 per cent success, it's excellent.''
    End Adv PMs Fri Dec 19
    
ap-ny-12-13 0936EST
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a064  0641  13 Dec 80
PM-Shariati,240
Jurors Tour Shooting Scene In Shariati Murder Trial
Laserphoto DX1
    DENVER (AP) - Jurors in the trial of an Iranian student who
allegedly shot and killed a teen-age boy and wounded two others last
fall have toured a southwest Denver parking lot where the incident
occurred.
    Afshin Shariati, 21, is charged with murder and assault in the death
of Paul Moritzky, 15, and the wounding of two of the youth's friends
in the early morning hours of Nov. 11, 1979.
    Shots were fired after the three smashed Shariati's apartment
windows with baseball bats, according to testimony in the case.
    Shariati contends he was defending his home and could not see
clearly when he fired two shots from a hunting rifle at a group of
fleeing figures. He said he thought a bomb was thrown through his
window.
    The prosecution maintains Shariati could see the youths and took
deliberate aim before opening fire.
    Judge Daniel Sparr told the Denver District Court jury to observe
the location of street lights and other sources of illumin in the
parking lot where the shooting occurred shortly after midnight.
    Wounded in the incident were Michael D. Lopez, 17, and Steve R.
Roane, 18.
    Roane has admitted that he, Moritzky and Lopez were looking to
''hassle'' Iranians about a week after the seizure of the U.S. Embassy
in Tehran and broke Shariati's apartment window with baseball bats.
    
ap-ny-12-13 0941EST
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a068  0716  13 Dec 80
PM-Eisenhower-Copters,190
Minesweeping Personnel Ordered to Stay in Indian Ocean
    NORFOLK, Va. (AP) - About half of the personnel in a helicopter
minesweeping squadron have been ordered to remain on duty on the
Indian Ocean until next month rather than come home with the aircraft
carrier Dwight D. Eisenhower, it has been reported.
    About 6,000 men aboard the Eisenhower and 500 each on the nuclear
cruisers Virginia and South Carolina have been at sea since sailing
from Norfolk last April 15.
    All were expected to return Dec. 22 after 151 days at sea.
    The Norfolk Virginian-Pilot said sources told it that the delay
order applies to about 125 pilots and crewmen of Norfolk-based
Helicopter Mine Countermeasures Squadron 14, which operates the same
kind of RH-53D helicopters that were used in the ill-fated hostage
rescue attempt in Iran last spring.
    The pilots and crewmen were aboard the Eisenhower, but were lifted
to another ship before the carrier began its homeward journey this
month, sources told the newspaper.
    Cmdr. Jim Lois, spokesman for the Atlantic Fleet Naval Air Force,
would neither confirm nor deny the schedule change. ''I can't comment
on the movement of that deployed unit,'' he said.
    
ap-ny-12-13 1017EST
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n999  0858  13 Dec 80
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BC-PROSPECTS (Undated)
(Financial)
A brief look at some business and financial prospects
c. 1980 N.Y. Times News Service
OPEC's Bali Decision
    A month ago, economists and politicians viewed this week's OPEC
meeting in Bali with a sense of foreboding. Increased activity in the
spot market and warfare between Iran and Iraq seemed to heighten the
likelihood of growing shortfalls - and a substantial price rise. That
situation has yet not come to pass. World stocks remain high.
Consequently, a price rise of about 10 percent - less than the
current inflation rate - looks probable. The big influence is still
Saudi Arabia, which has raised production to over 10 million barrels
a day to redress the shortages caused by the latest Middle East war.
In itself, the increase in Saudi production would not be enough to
justify the sanguine attitude many observers seem to share about the
Bali meeting. But exports from Iraq have resumed, and may soon reach
850,000 barrels a day, roughly one-third of prewar levels. Continued
weak demand in consuming countries has also been a help.
    Nevertheless, the war continues. Iran, which has also resumed modest
production, could still attack Iraqi fields. And abnormally cold
weather in Europe and the United States could persist, jacking up
demand.
Accountants rewrite rules
    Change generally comes slowly in the complex world of accounting.
But major American multinationals are demanding that a controversial
rule governing how foreign currency gains and losses show up in
company earnings reports be altered.
    Proposed amendments to Financial Accounting Standards Board rule No.
8 will be discussed this week at a public hearing in New York by
corporate treasurers and members of the FASB.
    Both groups are after the same result - to deal with the problem of
fluctuating overseas earnings, determined in large part by shifts in
exchange rates. Companies feel the current rule makes quarterly
statements more reflective of accounting quirks than actual corporate
performance, leading to misimpressions in the investment community.
    Experts in international finance generally prefer a revised FASB
ruling that would temper sharp quarterly fluctuations. However, as
long as floating rates, a diverse set of international accounting
systems and wildly disparate rates of inflation exist, toting up -
and guarding against - unforeseen gains or losses will remain a
Herculean task.
Making Spirits Bright
    'Tis the season to be jolly. Wine and liquor stores, which
traditionally rely on the holiday season for nearly one-quarter of
total sales, are expected to hold their own despite this year's
generally depressing economic news.
    Thanks to rising rates of production and increased value added per
employee, price increases for both liquor and wine have been
substantially below the overall rate of inflation.
    In spite of liquor's superior price performance, shifting consumer
tastes, lower consumption patterns and the high acceptance of wine
for gift-giving suggest wine sales will grow at a faster rate than
spirits.
Environmentalists Persist
    In spite of a well-documented aversion to federal, state and local
regulations in general, public attitudes about the importance of
environmental quality remain strong.
    According to an Opinion Research Corp. poll conducted for a number
of private business clients, over 60 percent of those polled agreed
that ''cleaning the environment is important, even if it means
closing down some old plants and causing some unemployment.''
    Forty-two percent of those responding to a Resources for the Future
survey (conducted for the Council on Environmental Quality) said
protecting the environment was so important ''that requirements and
standards can't be too high and continuing improvement must be made
regardless of cost.'' Only 13 percent felt pollution control
requirements and standards had gone too far, and already cost more
than they are worth.
    Apparently, business efforts to depict such regulations as
uneconomic and needlessly burdensome will face public opposition.
    
nyt-12-13-80 1159est
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a205  0911  13 Dec 80
BC-Iran-Clergy,300
By The Associated Press
    Four black American ministers arrived in Tehran Saturday on a visit
they said was intended to establish bonds with Islamic religious
leaders. They and the official Iranian news agency Pars said the trip
was unrelated to the 52 American hostages.
    The clergymen said their mission was part of an effort to eliminate
oppression among people of Iran and the United States.
    ''We are here as individuals and do not intend to interfere in the
negotiations between the two governments,'' Dr. Edward Freeman, a
Baptist minister from Kansas City told a reporter in Tehran.
    The other ministers are the Rev. Lehman Bates, a Baptist from
Washington, the Rev. Phale Hayle, a Baptist from Columbus, and Mikal
Ba'th, identified as an Islamic chaplain from Washington.
    The four said they hope to meet with revolutionary leader Ayatollah
Ruhollah Khomeini and other religious figures to discuss
Christian-Islamic bonds before returning home later in the week.
    They stressed the visit was not undertaken on behalf of the U.S.
government and that they had no political affiliation.
    ''We are here as ambassadors of God,'' said Bates.
    Pars reported Saturday the ministers had been unsuccessful in their
efforts to meet with Prime Minister Mohammad Ali Rajai.
    ''U.S. media attention on the hostage issue had given Americans a
narrow look at the Iranian revolution and the oppression of the
Islamic nation had been ignored,'' said Ba'th, who also visited Iran
in February.
    Bates described the 52 Americans, who have been held for 406 days,
as ''detainees'' rather than hostages but indicated the group's
sympathy for their families.
    ''We're not insensitive to the detainees here but that is not our
primary purpose,'' he said.
    The governments of the United States and Iran, with the aid of
Algerian intermediaries, have been negotiating for release of the
hostages.
    
ap-ny-12-13 1212EST
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a207  0934  13 Dec 80
AM-National Briefs,520
    ANNAPOLIS, Md. (AP) - Disciplinary action has been recommended for
six midshipmen - five men and one woman - accused of taking part in a
sexual incident at the U.S. Naval Academy.
    The academy asked the secretary of the Navy to dismiss some of the
midshipmen and to take unspecified disciplinary action against the
others. The request came after an investigation by academy officials
''disclosed varying degrees of involvement on the part of the five
males and one female midshipmen,'' said Dennis Boxx, a spokesman for
the academy.
    One source close to the academy's administration said the incident
began Nov. 22 as an one-to-one encounter between a male midshipman and
one of the 289 women midshipmen living in a dormitory. The
unidentified source said four more male midshipmen joined the pair,
and someone later began making movies of a variety of sexual
activities.
    ---
    LOS ANGELES (AP) - A federal court jury has convicted the owners of
an optical firm of secretly shipping high-technology laser mirrors to
the Soviet Union.
    The jury on Friday found Walter J. Spawr, 39, and his wife, Frances,
38, guilty of sending the mirrors to a West German agent, knowing he
would forward them to the Soviet Union. The Spawrs own Spawr Optical
Research Inc. of Corona. Federal law prohibits export of certain
regulated commodities with knowledge that they ''will be used for the
benefit of any communist-controlled nation.''
    ---
    DEDHAM, Mass. (AP) - A Walpole state prison guard has pleaded
innocent to conspiring to deliver an ounce of heroin to inmates of the
maximum-security institution.
    Kevin M. Sultis, 25, of Boston, entered the plea Friday at his
arraignment in District Court. He was arrested after allegedly making
arrangements with undercover state troopers to smuggle heroin inside
the prison, authorities said.
    ---
    PHILADELPHIA (AP) - A Marine Board of Inquiry has finished taking
testimony into the presumed sinking of the freighter Poet with 34
people aboard. Investigators said they expect to issue reports next
year after further study of evidence.
    The Poet, bound for Egypt with a cargo of grain, disappeared after
sailing from Philadelphia on Oct. 24. It last radioed its position a
day before an Atlantic storm struck near the New Jersey coast.
    Two final witnesses testified Friday before the Marine Board of
Inquiry, comprised of three Coast Guard officers and two members of
the National Transportation Safety Board.
    ---
    BUFFALO, N.Y. (AP) - Cynthia Dwyer, an American held by Iranian
authorities since May 5, has not been charged with any crime but
remains under investigation, according to Swiss officials.
    The officials, who recently saw the 49-year-old Mrs. Dwyer for the
first time since she was taken from the Tehran Hilton in May, said she
was ''basically in good health,'' according to George Havens, a
spokesman for the U.S. State Department.
    Mrs. Dwyer of Amherst, N.Y., reportedly was arrested by Iranian
revolutionary guards on charges of spying for the Central Intelligence
Agency.
    
ap-ny-12-13 1235EST
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a217  1050  13 Dec 80
AM-OPEC Bjt,550
OPEC Conference Opening with Differing Views on Price
By KENNETH L. WHITING
Associated Press Writer
    BALI, Indonesia (AP) - The 13-nation Organization of Petroleum
Exporting Countries begins deliberations here Monday on world oil
prices. What the delegates will do remained uncertain on the eve of
the conference.
    ''The only thing you can be sure about is that the price won't be
lowered,'' said a bank economist who specializes in energy matters.
    Sources at Pertamina, Indonesia's state-owned oil company, said the
usual alphabetical seating arrangement for such conferences is being
altered here so that delegates of the warring nations of Iran and
Iraq won't be seated next to each other.
    ''It's a tough protocol problem,'' said one Pertamina executive.
    In alphabetical order, OPEC consists of Algeria, Ecuador, Gabon,
Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia,
United Arab Emirates and Venezuela.
    The Bali meeting of oil ministers is the first major OPEC gathering
since Iran and Iraq started fighting in September.
    A summit meeting planned for last month in Baghdad, the capital of
Iraq, to mark the cartel's 20th anniversary had to be postponed
indefinitely as was a conference of OPEC finance ministers scheduled
for Quito, Ecuador, last October.
    No agenda has been released for this meeting. It is expected to be
closed except for a formal opening session addressed by President
Suharto of Indonesia.
    A review of world oil prices was certain, several analysts said, but
there was no firm indication that prices would be boosted.
    The last OPEC conference set the maximum price at $32 for a
42-gallon barrel, plus a maximum of a $5 surcharge for quality and
freight premiums.
    Saudi Arabia is now selling its oil for $30 a barrel, while Iraq is
charging $32.10.
    Mixed signals have been coming out of several OPEC capitals
concerning the need or feasibility of a price increase.
    Algeria, Iraq and Libya are said to be among the price hawks pushing
for an increase. Spokesman for Venezuela and Indonesia are on record
as favoring a ''moderate'' price hike.
    Mana Saeed Otaiba, oil minister of the United Arab Emirates, said he
would insist on a price freeze at Bali.
    Saudi Arabia and Qatar are believed to support a maximum limit of
$37 a barrel. There has been speculation that Saudi Arabia might agree
to increase its prices to the OPEC level if other producers don't
boost theirs.
    The Iran-Iraq war eliminated about 4 million barrels a day of Iraqi
and Iranian crude from Western markets. Saudi Arabia increased its
daily production from 9.5 million barrels a day to 10.5 million in
October to make up some of the loss.
    OPEC prices climbed about 150 percent between the end of 1978 and
last summer following the Iranian revolution and a sharp drop in
Iran's oil output.
    The increase spurred conservation measures in the West, resulting in
a buildup of oil inventories that has insulated consumers so far from
much of the impact of the drop in Iranian and Iraqi exports.
    Iraq has resumed oil shipments via pipelines to the Mediterranean
across Syria and Turkey. Industry sources said this totals about
800,000 barrels a day, about one-quarter of Iraq's pre-war exports of
3.2 million barrels daily.
    Iran is also estimated to be pumping about 100,000 barrels a day
through its Persian Gulf terminals at Lavan and Khark Islands.
    
ap-ny-12-13 1351EST
**********

a234  1339  13 Dec 80
AM-Hostages-Families,590
Hostage Families Briefed in More Optimistic Atmosphere
By H. JOSEF HEBERT
Associated Press Writer
    ALEXANDRIA, Va. (AP) - State Department officials on Saturday
briefed families of American hostages held in Iran amid an
increasingly optimistic atmosphere that a solution to the more than
year-old crisis may be only weeks away.
    Some of the nearly 100 relatives of 45 of the hostages said the
officials did not venture a prediction on when the 52 Americans would
be freed.
    But Dorothea Morefield of San Diego, Calif., whose husband Richard
is one of the captives, said, ''There's optimism right now.''
    She and other relatives interviewed said recent letters from some of
the hostages appeared to be more upbeat than letters in the past.
    The State Department invited the families to the Washington area to
get an update on continued negotiations with the Iranians through
Algerian intermediaries in efforts to free the Americans before
President Carter leaves office Jan. 20.
    The message from Undersecretary of State Warren Christopher was
''it's going to take time, but it hasn't ended. The bottom hasn't
dropped out,'' Mrs. Morefield said.
    The administration has conducted six such meetings in the past since
the Americans were taken captive Nov. 4, 1979, when Iranian militants
seized the U.S. Embassy in Tehran.
    Saturday's session was held at a hotel in this Washington suburb,
where the entire fifth floor was sealed off from outsiders.
    Several relatives said a number of the families wanted to know
whether the hostages might be freed in time for Christmas and some
believe such a prospect is not out of the question.
    But Louisa Kennedy, spokeswoman for the Family Liaison Action Group,
which coordinates information for hostage families, cautioned that
''the families are in a never-ending limbo'' and opptimism about a
Christmas reunion may be based more on hope than fact.
    Christopher, who met with the families for about 40 minutes, assured
them that intense negotiations were continuing and said the Algerian
intermediaries are ''of the highest caliber,'' according to several
participants.
    But they said the greatest benefit from these meetings has been the
opportunity for the families to meet and talk with one another.
    ''In this ordeal we've become like a close family . . . Each time
(we meet) it has become more of a test of strength,'' said Virgil
Sickmann of Washington, Mo., whose son Rodney was a Marine guard at
the embassy.
    What do the families discuss with each other?
    ''Everything,'' Mrs. Morefield said. ''Health problems, medical
probvlems, how the kids are doing. Did you get any letters? What have
you heard?''
    She also said that at times ''we all vent our frustration at the
State Department upon each other. It's perfectly all right, I guess,
to complain very unfairly sometimes . . . to each other. You get a lot
of things off your chest.''
    Mrs. Morefield was one of the relatives who received a more
optimistic letter from Iran recently. A letter from her husband
arrived Thursday and appeared to be more upbeat, she said.
    In the letter dated Nov. 21, Morefield, a veteran State Department
official, said, ''I've been in good health and I'm keeping my spirits
up.''
    He said he had lost weight and missed ''the tacos and beans'' but
hoped to regain weight soon after his release.
    He also said he recently had received a newspaper clipping about the
graduation ceremonies of their 222-year-old daughter, Betsy, at the
University of Virginia last May. Miss Morefield accompanied her mother
to the briefing.
    
ap-ny-12-13 1640EST
**********

a235  1344  13 Dec 80
AM-Hostage Flags,200
Residents Take Down Flags Because Of Thieves
    LINCOLN, Iowa (AP) - Residents of this small eastern Iowa town have
pulled down 24 American flags raised in honor of the U.S. hostages in
Iran because it cost too much to replace flags taken by thieves.
    The flags were erected along Main Street a year ago after the
Americans were taken hostage by militants in Tehran.
    ''We all hate to take them down, but it was costing the community
with 183 people too much money,'' said Bill Schadt, one of two
residents who originally proposed the flags.
    ''It hurts to take them down after a little town like this had tried
to do something we all believed in. Those flags had been up a year
and two weeks,'' he added after they were taken down Friday.
    Schadt said eight flags were stolen in the past two months,
including one on Monday. The Commercial Club and Amvets paid for the
flags, which cost $45 each.
    ''It just got too be too much,'' Schadt said.
    Lincoln residents will continue to remember the hostages, he said,
noting some residents have been flying flags in front of their homes.
    The Main Street flags will be replaced with 52 small American flags
on a board to be erected in a location where it can be more closely
watched by residents.
    
ap-ny-12-13 1644EST
**********

n999  1425  13 Dec 80
. . .
axx ny
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AM-HOSTAGES
State Dept. Tells Hostages' Families of 'Painfully Slow Process'
By A.O. SULZBERGER Jr.
c. 1980 N.Y. Times News Service
    ALEXANDRIA, Va. - The families of the American hostages in Iran met
here this weekend, but, because there was little news on the progress
of negotiations, it was mostly an occasion to bols.er themselves for
another Christmas with a loved one still in captivity.
    Saturday morning, State Department officials headed by Warren M.
Christopher, deputy secretary of state, told the families that
negotiations were continuing for release of the hostages, although
they were hampered by some language problems caused by going through
Algerian mediators.
    He explained to the fa milies that there was no way to predict when
the hostages might be released.
    ''I emphasized that this is a painfully slow process, an awkward
process,'' Christopher said after an hour-long briefing for the
families. ''But it is a process and it is continuing.''
    In Tehran, a senior Iranian official in the office of Prime Minister
Hojatoleslam Ali Rajai was quoted as saying that the discussions on
freeing the captives had been ''basically positive.''
    This is the sixth such meeting bringing together the families from
across the country since the 53 Americans were taken hostage more
than 13 months ago. And while a routine evolved long ago, with
families becoming practiced in dealing with both the attention of
news organizations and with the State Department, there were still
flashes of the pain and frustration felt by many of the family
members, untempered by the length of the crisis.
    ''There's a lot of anger in this room,'' said Dorothy Limbert as she
looked around a large, crowded room at the Holiday Inn where the
families were briefed by State Department officers.
    Mrs. Limbert is the mother of John W. Limbert Jr., a political
officer at the American Embassy in Tehran.
    ''To some extent, everyone has achieved a certain degree of
numbness,'' said Ernest Cooke, father of Donald Cooke, the deputy
consul at the embassy.
    Twenty-nine of the families have recently received letters from
their relatives, Cooke said, but he has not heard from his son since
April.
    ''Some of the letters are not encouraging,'' he said. ''In one case,
a hostage wrote back he was cold all the time. Another wrote he was
sick and not gANCES
THEY WERE DOING FAIRLY WELL,'' HE CONTINUED. ''Again, you're talking
about a pretty miserable situation though.''
    Representatives of approximately 46 of the 52 families flew here for
the weekend meeting. The State Department paid the expenses. Also
present was Richard I. Queen, a hostage released last summer.
    ''The major reason for the meeting is to give us a pat on the butt
and send us on our way,'' said the wife of a hostage who felt that
the meeting was a condescending action by the State Department and
the Family Liaison Action Group, the Washington-based association of
the hostage families. ''You never learn anything new at these
meetings,'' she said.
    Representatives of the liaison group said a major reason for the
meeting was that many families living outside Washington felt
excluded from briefings given by State Department officials to
families in the area. Further, the last major meeting of the families
was last summer, and the group wanted to hold another before
Christmas.
    In addition to the briefing by State Department officials on policy
matters, the families were advised on their taxes by representatives
of the Internal Revenue Service and discussed medical and family
problems with State Department doctors.
    ''There is a thirst for knowledge,'' said Harold H. Saunders,
assistant secretary of state for Near Eastern and South Asian affairs.
    It is still an open question, however, whether this thirst was
satisfied this weekend.
    ''I don't like Warren Christopher or Hal Saunders knowing more about
my husband than I do,'' said the wife of a hostage. She said she
believes that the State Department knows where the hostages are but
is not telling family members.
    Cooke said that a number of the letters received within the last two
weeks indicated that the conditions of captivity had changed for the
hostages.
    ''One letter indicated that a hostage was in a cell,'' said Cooke.
''Before, he was in a room.'' He said another hostage was apparently
no longer with the people he had once been with.
p
    
nyt-12-13-80 1726est
**********

n999  1433  13 Dec 80
. . .
ixx ny
a053
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BC-SYRIA
Beirut Newspaper Says Syrian Jets Attacked Islamic Bases
in Jordan
c. 1980 N.Y. Times News Service
    BEIRUT, Lebanon - Syrian jets have carried out attacks against
suspected bases of Islamic fundamentalists in Jordan, according to a
leftist newspaper here with Syrian connections.
    The daily, As Safir, cited an unidentified senior official in
Damascus as the source of its information. It said the targets hit
were training camps for the Moslem Brotherhood at Ajloun, in central
Jordan.
    It gave no details, nor did it say when the raids took place. The
newspaper reported that both the Syrian and Jordanian authorities had
imposed a blackout on the issue.
    In a dispatch from the Syrian capital, As Safir reported that at the
beginning of this month during the height of the Syrian military
buildup along the border with Jordan, Damascus was planning to send
ground raiders into Jordanian territory against Moslem Brotherhood
camps. The attacks were called off after mediation by the Saudis in
the conflict, it added.
    The mediation also resulted in agreement by the two countries to
pull troops back from the border.
    Syrian leaders had said that Amman's alleged provision of military
and other assistance to Moslem fundamentalists opposed to the regime
of President Hafez al-Assad was a main reason for the deployment of
thousands of Syrian troops and tanks near the border.
    As Safir quoted the Syrian official as saying that there were other
reasons as well. Damascus wanted to stop King Hussein of Jordan from
sending troops to Iraq to help the Baghdad regime in its war with
Iran, the official added.
    He said that the bulk of Syrian concentration was opposite the
Jordanian garrison town of Al Mafrak, from where Jordanian forces
would have passed on their way to Iraq.
    Moreover, Damascus wanted to demonstrate to Hussein that he had no
freedom of action in negotiating with Washington about a Middle East
settlement in the absence of the Palestine Liberation Organization,
the Syrian said.
    Assad strongly opposed Iraq's invasion of Iranian territory,
insisting that all Arab energy should be devoted to the confrontation
with Israel, which Damascus regards as the Arabs' main enemy.
    He accused Hussein of preparing to enter negotiations with the
Reagan administration for a settlement of the Palestinian question,
allegedly offering himself as a substitute for the PLO.
    As Safir quoted the Syrian official as declaring that another
objective of the military moves was to stop attempts by Amman and
Baghdad to isolate Syria. Damascus wanted to make certain that
oil-producing Arab countries will continue to come forward with
financial aid to Syria to maintain its stand against the Israelis,
the source reportedly said.
    These nations committed some $2 billion a year to Syria for 10
years. The decision was adopted at an Arab summit conference held in
Baghdad two years ago. Endeavors to isolate the Assad regime followed
its boycott of the Arab leaders' meeting last month in Amman, As
Safir said.
    
nyt-12-13-80 1733est
**********

n999  1524  13 Dec 80
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kbx ny
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BC-EDIT-GAS (UNDATED)
c. 1980 N.Y. Times News Service
    The New York Times said in an editorial Sunday, Dec. 14:
Put Natural Gas in the Bank
    Alert to the danger of another interruption in the supply of oil
from the Persian Gulf, Congress has long favored the conventional
idea of an emergency oil reserve. Now it is time also to bolster
American defenses against embargo by creating an unconventional
stockpile, an emergency reserve of domestic natural gas.
    Conservation and a sluggish economy have cut oil imports by a
quarter in two years. But America is sure to remain dependent on
foreign oil for decades, and any prolonged interruption would do
immense damage. That is why, five years ago, Congress authorized a
billion-barrel emergency oil reserve, enough to replace six months of
imports.
    Good intentions, though, have never been translated into action.
Mismanagement, Arab opposition and plain bad luck have put the
strategic petroleum reserve program far behind schedule. Fewer than
100 million barrels are now ready for emergency use. The Energy
Department is under orders to pump at least 100,000 barrels a day
into specially prepared underground salt domes, but it will still
take years to meet the billion-barrel goal.
    The Iraq-Iran war has reduced world oil production by at least two
million barrels a day, forcing the oil companies to begin drawing
down their own stocks. As long as supplies remain so tight, an
all-out drive to fill the American reserve could lead to higher
prices and energy shortages in Europe. There is the possibility, too,
that such a drive would prompt Saudi Arabia, which has raised its
daily production substantially for months - to help offset the loss
of Iraqi oil - to change its mind.
    None of that means that the United States should stop building up
the oil stockpile. But it does indicate the importance of
reinforcement. That can easily come from domestic natural gas.
    Unlike oil, gas is now plentiful: as much as 10 percent of current
production capacity probably could be diverted to storage without
creating shortages. Nor would storage create a problem. Supplies can
be reinjected into exhausted gas wells.
    Natural gas is no substitute for oil in cars and trucks. But it
could substitute for many of the two million barrels of oil consumed
daily by industries that could switch to gas on short notice. In an
emergency, a natural gas stockpile could thus readily stretch
remaining oil supplies for other needs.
    The national memory is short. Last year's gas shortage (lining up at
4 a.m., fist fights, pointing pistols at pregnant women) was, well,
last year. But the threat of a break in the international oil
lifeline remains. Developing a natural gas reserve would not only be
prudent, it would be painless.
    
nyt-12-13-80 1824est
**********

a254  1534  13 Dec 80
AM-War Rdp,400
Iraq Gives Captured Iranian Weapons To Jordan
By JOSEPH PANOSSIAN
Associated Press Writer
    NICOSIA, Cyprus (AP) - Iraq said Saturday it gave captured Iranian
tanks and other arms to the Jordanian army in gratitude for Jordan's
support of Iraq in its 83-day border war with Iran.
    Baghdad Radio, monitored here, said Iraqi President Saddam Hussein
received a message from Bahjat Talhouni, chairman of the upper house
of the Jordanian Parliament, thanking him for the weapons.
    The broadcast said the gifts were for the ''brotherly ties'' between
the Iraqi and Jordanian armies and ''symbolized Iraqi triumphs on the
battle front and war booties captured from the Iranians.'' It did not
say how many tanks and weapons were delivered to the Jordanians.
    Both the Jordanian and Iranian armies are equipped primarily with
U.S.-made weapons. Iraqi armaments are predominantly Soviet-made,
although Iraq has been diversifying its arms sources in recent years.
    Iran's official Pars news agency, in communiques broadcast from
Tehran, said fighting continued in the western and southern sectors of
the front.
    It said Iraqi long-range artillery shelled the strategic city of
Dezful Saturday, killing 53 civilians and wounding 112 others.
    Dezful, about 50 miles east of the border, controls the northern
approaches to Ahwaz, capital of Iran's oil-producing Khuzistan
Province and scene of the heaviest fighting in the war. The Iraqis
launched rocket attacks against the city last month, killing 100
people and wounding 100 others, Iran said.
    Pars claimed Iranian forces recaptured two villages near Susangerd
from the Iraqis Friday. It said fighting continued in the
Allah-o-Akbar heights near the city, where it said 20 Iraqi troops
were killed or wounded in the last 24 hours.
    Pars also reported the oil-refining city of Abadan on the Shatt
al-Arab waterway in the south came under sporadic artillery fire from
Iraqi forces that killed eight people and wounded 67. The two sides
have been bombing and shelling each other's oil installations and
pipelines near the Shatt Al-Arab for the last three weeks.
    Tehran Radio said four Iraqis were killed and an enemy tank and two
trucks were destroyed in ground fighting near Abadan.
    Baghdad Radio claimed Iraqi forces had the situation ''under
control'' on all sectors of the battlefront.
    The Baghdad communique claimed Iraqi forces killed 21 Iranian troops
in Abadan and four at Susangerd in fighting Friday and Saturday. It
acknowledged 11 Iraqi deaths.
    
ap-ny-12-13 1835EST
**********

a261  1621  13 Dec 80
AM-Hostages,450
Iran Says More Negotiations Needed on Hostages
By The Associated Press
    The latest U.S. response to Iran's demands for the freeing of 52
American hostages was positive, but further indirect negotiations are
needed, an Iranian official said in an interview published Saturday.
    Four black American ministers arrived in Tehran, but they were
quoted as saying their trip was not related to the hostages and
instead they hoped to establish bonds with Islamic religious leaders.
    ''We are here as individuals and do not intend to interfere in the
negotiations between the two governments,'' Dr. Edward Freeman, a
Baptist minister from Kansas City, told a reporter in Tehran.
    The suggestion that more deliberations were needed on the hostage
issue was made by Behzad Nabavi, head of the government commission on
the captives, and dimmed hopes they might be released by Christmas.
In the interview, he said Iran was preparing new suggestions on how
the United States could meet the four conditions for release of the
hostages, who spent their 406th day in captivity Saturday.
    The four conditions are a pledge not to interfere in Iranian
affairs, release of an estimated $8 billion in Iranian assets frozen
by the United States, return of the wealth of the late Shah Mohammed
Reza Pahlavi and cancellation of all legal claims against Iran.
    The United States already has promised not to interfere and has said
it could release those assets not tied up by lawsuits. But U.S.
officials repeatedly have said the disposition of legal claims against
Iran and the shah's money must be determined by U.S. courts. They
have noted that much of the Pahlavi fortune is not in the United
States.
    Washington's latest response to Iran was delivered Dec. 4 by
Algerian officials, who have been acting as intermediaries in the
negotiations.
    Nabavi, in the interview with the newspaper Jomhuri e Islami, said
Iran's answer ''will propose measures to the U.S. government to
implement in relation to solving the issue, and then it will be the
turn of the United States to show concern for the fate of the hostages
as it has claimed in the mass media.''
    Nabavi called Iran's new suggestions ''very reasonable, very
rational and based on the Majlis decision.'' The Majlis, Iran's
Parliament, established the four conditions on Nov. 2.
    The four ministers who arrived in Tehran Saturday said they hoped to
meet with the country's spiritual leader, Ayatollah Ruhollah
Khomeini. Other members of the party are the Rev. Lehman Bates, a
Baptist from Washington; the Rev. Phale Hayle, a Baptist from
Columbus, Ohio, and Mikal Ba'th, identified as an Islamic chaplain
from Washington.
    They stressed the visit was not undertaken on behalf of the U.S.
government and said they had no political affiliation.
    ''We are here as ambassadors of God,'' Bates told reporters.
    
ap-ny-12-13 1922EST
**********

a267  1651  13 Dec 80
AM-War Rdp, SUB, A254,180
NICOSIA, Cyrus, SUB 4rth graf to update with Iranian-Iraq peace
conditions, insert after 4th graf, ''Iran's official...the front.''
    The Bahrain-based Gulf News Agency, in a report from Baghdad, quoted
Iraqi Vice President Tari Aziz as telling Parliament that U.N.
special envoy Olof Palme would return to Iran and Iraq later this
month in a second attempt to arrange a cease-fire. U.N. officials, who
sent Palme on an unsuccessful peace mission to the two countries last
month, were unavailable for comment.
    Aziz reiterated Iraq's insistance on holding onto captured territory
pending a settlement recognizing ''Iraqi rights'' over the disputed
Shatt al-Arab waterway at the northern tip of the Persian Gulf, the
news agency said. He also was quoted as saying a settlement would have
to include ''restoration of Arab national rights usurped by Iran,'' a
reference to the ethnic Arab population in Iran's oil-rich Khuzistan
Province.
    An Iranian Foreign Ministry communique repeated Iran's vow to
continue fighting unless Iraq withdraws all its forces from Iran
unconditionally, Iran's official Pars news agency said.
    Pars, in communiques broadcast from Tehran, said fighting continued
in the western and southern sectors of the front.
    It said: 6th graf
    
ap-ny-12-13 1952EST
**********

a273  1721  13 Dec 80
AM-Exercise-Egypt,380
Chopper Pilots Solve Sand Problem In Egyptian Maneuvers
By FRED HOFFMAN
AP Military Writer
    WASHINGTON (AP) - U.S. Army assault troops, maneuvering in the
Egyptian desert for the first time recently, met problems they had not
expected from sand sucked up by their helicopters.
    Among other things, Blackhawk transport helicopters were damaged by
flying sand that wore away caps on the tips of their rotor blades as
the machines hovered about ten feet from the surface.
    ''It wasn't particularly significant, and we found a cheap and easy
way to fix it,'' said Maj. Larry Bates, spokesman for the 101st
Airborne Division in a telephone interview from Fort Campbell, Ky.
    A 700-man battalion from the 101st was the core unit in a two-week
exercise of a 1,400-man U.S. air-ground force in the desert about 30
miles from Cairo West Airport last month. It was the first time that
units of the new Rapid Deployment Force - established by the Carter
administration to protect U.S. interests in remote parts of the globe
- had conducted maneuvers in the Middle East.
    One of the central objectives of the exercise was to give U.S.
helicopter pilots experience in desert operations. The need for such
experienced was underscored last April when a commando mission to
rescue the 52 American hostages in Tehran failed and had to be aborted
at a desert staging area.
    Bates said the solution to the rotor problem was to put a thin
plastic tape over the blade caps to absorb the sand's impact.
    He said the problem did not cause any major interruptions in
operations of the Blackhawks, the most advanced Army helicopters now
in the field. Each Blackhawk cost about $3 million.
    According to Bates, the choppers did not suck up sand while flying
across the desert, only while hovering. ''We flew about 50 feet above
the desert and we didn't pull up sand at that altitude,'' he said.
    The 101st Airborne Division spokesman said, ''We are just now
getting to understand some of the lessons we learned'' in the November
exercise.
    It was found, for example, that crewmen flying Cobra attack
helicopters could not fire their TOW antitank missiles while their
machines hovered because the sand clouds obscured the vision of
soldiers operating the wire-guided missiles.
    ''So we speeded up to 10-15 miles an hour and found that we left the
flying sand behind,'' Bates said. ''We could fire the missile that
way without affecting its accuracy.''
    
ap-ny-12-13 2022EST
**********

a275  1728  13 Dec 80
AM-Saudis-Awacs,140
Saudi Official Says Country May Ask For More US Planes
    KUWAIT (AP) - Saudi Arabia's information minister, Mohammed Abdo
Yamani, was quoted Saturday as saying his country may ask for more
sophisticated surveillance planes from the United States.
    In an interview with the Kuwait newspaper al-Rai al-Amm, Yamani also
was reported to have said the Saudi kingdom would not allow any
foreign military bases on its territory and had no intention of
entering into any alliances with power blocs.
    The United States sent four AWACS (airborne warning and control
systems) planes to Saudi Arabia at the government's request two months
ago to strengthen its radar warning systems because of the Iran-Iraq
war being waged in the Persian Gulf area.
    The arrival of the AWACS in Saudi Arabia drew severe criticism from
Iran and from Arab radicals opposed to Iraq. Iran said the planes
were ultimately intended to serve Iraq's war effort.
    
ap-ny-12-13 2029EST
**********

a277  1735  13 Dec 80
AM-Iraq Oil,130
Flow Of Iraq's Crude Oil Stops
    DAMASCUS, Syria (AP) - The flow of Iraq's crude oil through a
pipeline across Syrian territory to the Mediterranean Sea has stopped
because of ''sudden failures'' in electricity, informed sources said
Saturday.
    Iraq started pumping the crude through the pipeline 10 days ago. Oil
exports by Iraq and Iran, which are at war, have been periodically
interrupted because of attacks on refinery and oil terminal loading
facilities.
    The sources said the power problem occurred at generators at pump
stations inside Iraqi territory.
    Iraq was believed to be pumping 200,000 barrels a day to Banias
terminal in Syria. The pumping had resumed after a two-month
interruption caused by the Iran-Iraq war.
    
ap-ny-12-13 2035EST
**********

n999  1830  13 Dec 80
. . .
wbx cd
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BC-OPEC-2takes-12-14
    NEWS ANALYSIS
    By Patrick Oster
    (c) 1980 Chicago Sun-Times (Field News Service)
    WASHINGTON-Those lovable guys from OPEC are meeting in the warm,
Pacific paradise of Bali Monday to decide how much more oil-and
ultimately heating oil and gasoline-will cost the rest of us this
winter.
    Optimists are talking about likely boosts of $2 per barrel, up from
an official price range now of $32-$37 a barrel.
    In hopes of heading off or at least minimizing such an increase, the
United States and 21 other nations met last week in Paris in their
capacity as the International Energy Agency, an anti-OPEC cartel set
up after the 1973 oil embargo. IEA members promised to import 2.2
million barrels a day less oil than they estimate they will need
during the first three, cold months of 1981.
    Such a promise of ''sacrifice'' sends a signal to the Organization
of Petroleum Exporting Countries that demand is about to go down, so
price increases that are too high may be met with a buyer boycott,
given the world's current ample supply of oil. It's also a signal to
the oil market to head off a spiraling cycle of panic buying and
price increases.
    The IEA action, however, also is a concerned response to oil supply
shortages expected to be caused by the Iran-Iraq war.
    Iran's and Iraq's oil exports plummeted to zero after the outbreak
of war. Both have since quietly resumed exports, with Iraq shipping
out about 1 million barrels a day through its pipeline to the
Mediterranean, and Iran as much as 300,000 barrels a day through
eastern Persian Gulf ports. But that's still below pre-war figures of
3.1 million barrels a day for Iraq and 600,000 barrels for Iran.
    Saudi Arabia's oil minister, Sheikh Ahmed Zaki Yamani, who says he
wants to keep OPEC increases to a minimum to assure stability of the
much Saudi-used U.S. dollar, called the IEA goal ''a remarkable
achievement if it is carried out.''
    Whether it can be carried out seems doubtful, given the tools the
United States is likely to use to prompt the reduction.
    Energy Secretary Charles W. Duncan has not yet announced how the
Carter administration will get oil companies to fall into line with
the U.S. export limit promise, given the companies' poor track record
in complying with government voluntary directives in the past.
    In principle, what is planned is to urge oil purchasers not to make
up any shortages by going to the spot market, where prices are about
$40 a barrel and could go higher if supply panic sets in.
    If companies can't get oil there, conservation by consumers might
help cut some of the shortage. In response to past calls for
conservation, some citizens have driven less or dialed the thermostat
down out of patriotism. But most of the 8.8 percent drop in
consumption in the last year has been forced on users by skyrocketing
prices. The oil companies might be all too willing to encourage this
kind of conservation again, if the shortage scare become severe
enough.
    Getting the oil companies to draw down on their ample stockpiles of
oil supplies is a seond, more palatable technique the administration
might use. But what's in it for the companies?
    Many firms undoubtedly will be skeptical that there will be a
shortage of the magnitude IEA predicts. The United States and other
major oil users have a history of inflating the bad news so that
actions they promise to take in response seem more of a hardship than
they really are.
    While acknowledging this suspicious track record, DOE spokesman Les
Daly insists that the IEA import-limit goal is not a doctored figure
this time. But he also admits that the oil companies will have very
little to go on in calculating how much they may have to draw down on
their oil stocks, should the expected shortage prove real.
    They'll have little guidance because the IEA goal is strictly a
group goal. No individual country targets were set at the Paris
meeting. If one looked at the United States' normal share of world
oil exports-about 7 million out of 22 million barrels a day-one might
say the United States would be expected to do without about one-third
of the IEA's 2.2 million barrel goal, or about 700,000 barrels a day.
If one used the U.S. figure for world consumption of oil, the figure
would be even larger. But Daly says that such figures are irrelevant
to the goal. The key inquiry, he said, is whether the group meets the
goal as a whole.
    (MORE)
    
nyt-12-13-80 2130est
**********

a003  0150  14 Dec 80
BC-Iran Chronology, 41st Add,200
UNDATED: release terms.
    Day 400, Dec. 7 - U.S. proposals on hostage release under study in
Tehran. Iran's sternest judge, Sadegh Khalkhali, quits in row over
performance of his anti-narcotics campaign.
    Day 401, Dec. 8 - Parliamentary speaker Rafsanjani says latest U.S.
response takes clearer steps in carrying out Iran's demands.
    Day 402, Dec. 9 - Jody Powell reports ''some communications'' with
Algerian intermediaries over hostage issue. He gave no details.
    Day 403, Dec. 10 - Plan new U.N. mediation for Iran-Iraq war.
    Day 404, Dec. 11 - Iran reportedly rejects U.S. proposal to let
American courts decide whether the late shah's wealth belongs to Iran
or this his heirs. The issue remains the key stumbling block to
release of the hostages.
    Day 405, Dec. 12 - Iranian official terms latest U.S. response
''more positive,'' but says more indirect negotiations are need to
bridge gap over Iran's demands.
    Day 406, Dec. 13 - Chief of Iran's government hostage commission,
Behzad Nabavi, says Iran will send Washington its proposals for
solving the problem of return of the late shah's wealth. Hostage
families meet in Washington for a State Department briefing.
    
ap-ny-12-14 0451EST
**********

a004  0152  14 Dec 80
BC-Iran Week by Week, 19th Add,90
UNDATED: U.S. response.
    Week 58, Dec. 7 - Dec. 13 - Iran reportedly rejects U.S. proposal to
let American courts decide whether the late shah's wealth belongs to
Iran or this his heirs. The issue remains the key stumbling block to
release of the hostages. Iranian official terms latest U.S. response
''more positive,'' but says more indirect negotiations are need to
bridge gap over Iran's demands. Hostage families meet in Washington
for a State Department briefing.
    
ap-ny-12-14 0453EST
**********

a011  0808  14 Dec 80
BC-Hostages,340
    KUWAIT (AP) - The independent Kuwaiti newspaper Al Watan said Sunday
that Syrian President Hafez Assad has personally intervened with
Iran's leaders to ensure that the 52 American hostages held in Iran
are freed before Dec. 25.
    A Syrian government spokesman immediately denied the report. ''Syria
knows nothing about the report published in Al Watan,'' said the
spokesman, adding the brief statement should end any further
speculation.
    Quoting ''international diplomatic sources in Washington,'' the
newspaper said Assad, a leading opponent of the United States in the
Arab world, used his contacts with Tehran at the request of an unnamed
''Republican personality close to U.S. President-elect Ronald
Reagan.''
    Assad has supported Iran in its nearly three-month old war with
Iraq.
    The newspaper report came as Algerian Foreign Minister Mohammad al
Saddiq Ben Yahia wrapped up talks with Assad and Syrian Foreign
Minister Abdel Halim Khaddam and flew here Sunday.
    Ben Yahia refused to comment on the report and said the purpose of
his visit to Kuwait was to smooth over differences between Arab states
that resulted from the summit in Amman, Jordan last month.
    Algeria is acting as intermediary between the United States and Iran
in negotiations for the release of the American captives, held in
Tehran since Nov. 4, 1979.
    Al-Watan said ''agreement has been reached to free the hostages
before Christmas despite public denial emanating from Tehran ... The
hostages will be flown within the next few days to Damascus (capital
of Syria) and then home.''
    Iran last Wednesday denied a report by the leftist Beirut newspaper
As-Safir that the hostages would be released on Christmas Day as a
result of a compromise agreement between Iran and the United States on
Iran's release demands.
    The four conditions are a pledge not to interfere in Iranian
affairs, release of an estimated $8 billion in Iranian assets frozen
by the United States, return of the wealth of the late Shah Mohammad
Reza Pahlavi and cancellation of all legal claims against Iran.
    
ap-ny-12-14 1032EST
**********

a207  0921  14 Dec 80
AM-People,780
Laserphoto NY10
People in the News
    TUSCOLA, Ill. (AP) - Nine-year-old Kyle Beachy gladly leaves his
fourth grade classmates on the playground each day to walk across the
street to ring the bell atop the United Methodist Church.
    He tugs at the rope in the church lobby and the bell sounds 52 times
- once for each American hostage in Iran.
    ''I like to ring it, but I wish they would come home,'' said Kyle.
''I ring the bell and I pray. It's about all we can do.''
    The Rev. Belmont Metzger had asked for volunteers to ring the bell
for the hostages, but now he seldom needs to do that. ''He's our
mainstay,'' the pastor said. ''He even does it sometimes on Saturday
and Sunday.''
    But, every weekday for sure, Kyle leaves the North Ward School to
ring the bell.
    ''I don't miss too much,'' said Kyle. ''Sometimes I'm playing
football with some other kids. I just stop and come over and do it.''
    He added: ''I do think it's pretty important. I think it'll bring
the hostages home - or help.''
    ---
    ISLAMABAD, Pakistan (AP) - Mary Ann Dubs, widow of Adolph Dubs who
was killed in Afghanistan last year while serving as U.S. Ambassador,
was awarded a top Pakistani honor Sunday for aiding Afghan refugees
here.
    Mrs. Dubs, 35, a founding number of the New York-based Afghan relief
committee, was presented the ''Star of the Great Leader'' award by
Foreign Minister Agha Shahi. It is the second highest Pakistani honor
a foreigner can receive.
    A citation said Mrs. Dubs was selected because of her ''efforts to
promote the noble cause of organizing the maintenance of relief for
Afghan refugees in Pakistan.''
    Mrs. Dubs arrived two weeks ago to distribute about $28,000 her
organization raised for medical relief for the estimated 1.2 million
Afghans in Pakistan.
    ---
    NEW YORK (AP) - Mayor Edward Koch will leave Wednesday on a 2 1/2-week
vacation trip to Egypt and Israel that will include visits with
President Anwar Sadat and Prime Minister Menachem Begin.
    Koch will tour the West Bank, the Golan Heights and Jerusalem.
    The mayor and some of his top aides will travel partly at their own
expense and partly as the guests of Egypt and Israel.
    ---
    LANSING, Mich. (AP) - Detroit Mayor Coleman Young refused to accept
re-election to the Democratic National Committee after the state's
Democratic chairman made a speech Young's supporters said was ''racist
and unfair.''
    Young's withdrawal, announced Saturday at a meeting of the
Democratic State Central Committee, came after state Chairman Morley
Winograd, a white, charged blacks had not supported the Democratic
ticket in the 1978 gubernatorial campaign.
    Gov. William Milliken, a Republican, won the race handily against
Democrat William Fitzgerald.
    Because of that lack of support, which Winograd blamed on Young's
office, Winograd suggested blacks didn't deserve an extra seat on the
Democratic National Committee. Some seats are reserved for blacks in
addition to the national committeeman and committeewoman from each
state.
    Young aide Malcolm Dade called Wingrad's remarks ''racist and
unfair'' and told the committee Young would not accept an
all-but-guaranteed committee seat.
    ---
    LOUISVILLE, Ky. (AP) - Colonel Harland Sanders was given oxygen
Sunday to help in his battle against pneumonia, a Kentucky Fried
Chicken spokesman said.
    The pneumonia appeared ''a little worse,'' said spokesman John Cox.
    Sanders, the 90-year-old founder of the fried chicken chain, also is
fighting leukemia which was diagnosed earlier in the year.
    He was not in intensive care Sunday but was listed in critical
condition, said John Cox, a Kentucky Fried Chicken spokesman.
    They have someone with him all the time,'' Cox said.
    Sanders has been in Louisville Jewish Hospital since Nov. 7.
    ---
    HARTFORD, Conn. (AP) - Gov. Ella Grasso remained in satisfactory
condition at Hartford Hospital on Sunday as she prepared to take her
first walk since undergoing surgery last week.
    ''They will get her up a bit more and have her walking a little in
her room,'' hospital spokesman James Battaglio said.
    He said the governor got out of bed Saturday for the first time
since surgery Wednesday. Mrs. Grasso sat in a chair for 15 minutes and
took her first clear liquids, although she was still being fed
intravenously, he said.
    A colostomy and a bypass of the small bowel were performed on the
governor to relieve nausea caused by two malignant obstructions in her
intestines. Mrs. Grasso, who will resign from office Dec. 31, also
has liver cancer.
    
ap-ny-12-14 1222EST
**********

n999  1208  14 Dec 80
. . .
ixx ny
a039
r i czczyvqyv
BC-OPEC
By PAMELA G. HOLLIE
c. 1980 N.Y. Times News Service
    BALI, Indonesia - Every few hours Sunday a fleet of black Mercedes
formed a motorcade for oil ministers arriving for the yearend meeting
of the 13-member Organization of Petroleum Exporting Countries. The
motorcades drove along a private back road from the airport to the
Pertamina Cottages, a seaside resort owned by Indonesia's state-owned
oil company. There, secluded behind a wall of armed guards, the
ministers begin on Monday an attempt to iron out their differences
and set price and production guidelines for 1981.
    It is unlikely that this first meeting of the oil ministers since
the outbreak of war between Iran and Iraq, two OPEC members, will be
easy. For one thing, OPEC members are usually seated in alphabetical
order, which would put Iran next to Iraq at the opening session on
Monday. In addition, the moderate members led by Saudi Arabia are
expected to meet resistance from the hawkish members over price and
production. The moderates, however, are expected to prevail.
    This meeting is a test of OPEC's resiliency. ''We have a challange
to restore the normalcy of OPEC,'' said Humberto Calderon Berti,
Venezuelan oil minister. ''We are going to prove to everyone that
OPEC is strong,'' he said.
    Fresh from meetings in Paris and Kuwait aimed at producing an
orderly meeting here, Calderon said other member nations were
optimistic that OPEC would overcome its problems. ''We think these
problems we face now are transitory ones.''
    Until a few days ago, it was uncertain whether this meeting would be
held. Since the Iran-Iraq war, OPEC has postponed or canceled several
meetings including the 20th anniversary celebration planned in
Baghdad, Iraq, last month. Mana Said Otaiba, the oil minister for the
United Arab Emirates, had urged that the meeting here be postponed if
the war between Iran and Iraq continued. The U.A.E. had indicated
that it would not attend under those conditions. But, following a
one-day meeting of Arab oil ministers in Kuwait last week, it became
apparent that all of the members would attend the Bali conference in
a show of cooperation. Conspicuously absent is Iran's oil minister,
Mohammed Tondgoyan, who is being held prisoner by Iraq.
    To mend fences between the two OPEC founders, some oil ministers
were said to have suggested to Iraq's oil minister, Tayen
Abdul-Karim, that he bring Iran's oil minister to this week's
meeting. Iraq refused.
    OPEC hopes to forge a new unity. ''That is our first priority,''
said Calderon. To do so, he said that the conference would ''avoid
any point that could lead to confrontation.''
    But, it is unlikely that the Iraq-Iran war can be ignored. The level
of production from each of the two warring countries will effect
OPEC's decisions this week. For the moment, Calderon said that OPEC
is predicting a deficit in the first quarter of 1981 of three to four
million barrels of oil.
    Generally the effects of Iran-Iraq war have been cushioned by the
high inventories. By drawing down their oil stocks and reducing
consumption, all but a few countries have been able to weather the
last few months. In addition Saudi Arabia increased its daily
production from 9.5 million barrels a day to 10.5 millions barrels a
day in October to help make up the loss caused by the war.
    Recently, oil has begun to flow out of Iran and Iraq. Iraq is now
exporting a million barrels a day through pipelines to Turkey, Syria
and Lebanon compared to 3.2 million before the war began in
September. And, according to a recent Middle East economic survey in
Bahrain, Iranian oil exports, which were stopped by the war, have
been resumed and may be 300,000 to 400,000 barrels a day from Kharg
Island, Lavan and Sirri terminals in the gulf.
    The improved supply picture has had the effect of softening crude
oil spot prices. According to the New York oil journal Petroleum
Intelligence Weekly, the news that Iraq had resumed production drove
down the spot crude oil prices in New York by as much as $4 a barrel
from a peak of $42 at the height of the war. At those prices,
however, there was very little demand.
    With the market already tested at the $40-a-barrel level, moderate
OPEC members like Saudi Arabia will try to encourage slow price
growth. At last week's meeting of the Organization of Arab Petroleum
Exporting Countries, the nine nations, which are all OPEC members
except for Syria, endorsed the need for ''moderation'' at the OPEC
price talks.
    Calderon, who met with other OPEC members informally Sunday, said he
will support moderate increases in 1981 and a formula designed to
restored equilibrium between supply and demand. Venezuela supports a
long-term forumula for gradual, automatic price adjustments based on
a number of factors including inflation. If such a system were to go
into effect on Jan. 1, Calderon estimated that crude oil prices would
climb on a quarterly basis by a total of 2 to 3 percent in real terms
for 1981 based on a selling price of $32 a barrel. All of the OPEC
members except Saudi Arabia are selling oil at the $32-a-barrel level.
    
nyt-12-14-80 1508est
**********

a225  1252  14 Dec 80
AM-OPEC, Bjt,700
OPEC Ministers to Meet
Laserphotos BAL1,4
By KENNETH L. WHITING
Associated Press Writer
    BALI, Indonesia (AP) - OPEC oil ministers gathered here Sunday amid
heavy security that turned part of this holiday island into an armed
camp and brought into sharp focus the war between two of its members
- Iran and Iraq - which threatens to disrupt the session.
    A security officer at the 13-member Organization of Petroleum
Exporting Countries meeting was asked if he expected any flareup here
connected with the months-old Persian Gulf war.
    ''No, there will be no war here on Bali,'' he replied without
elaborating.
    Conference sources say much of the meeting will be devoted to
administrative matters that have accumulated since the last major OPEC
conference in Vienna in September and an attempt to ''restore
unity.''
    The price of oil is not a priority item on the agenda, but OPEC
members say they will review supply and demand.
    OPEC sources have sought to assure observers that Iran's demand for
the return of its oil minister - captured in late October near the
Iranian oil refinery city of Abadan - will not disrupt the session.
    Iraq has declined to deliver Oil Minister Mohammed Jawad Bequir
Tunguyan to Bali as a conciliatory gesture, despite suggestions from
other OPEC members that the step might lead to peace in the gulf.
    The Iranian was captured by invading Iraqi forces in late October
and Baghdad calls him a war prisoner. Conference sources said that
delegates from Iran and Iraq will not be seated next to each other, as
they would have been in the usually alphabetic seating arrangement.
    With Iran and Iraq at war since Sept. 22 and feuding over Tunguyan
there was speculation that the OPEC meeting would fail to achieve the
solidarity needed to agree on unified prices on other key issues.
    The challenge before OPEC is ''to restore unity,'' said Venezuelan
Oil Minister Humberto Calderon Berti. He said groups of ministers met
informally Sunday to discuss preliminaries and were scheduled to dine
together Sunday night.
    ''We are going to avoid any points which can lead to
confrontation,'' he said. ''I don't believe the problems we have had
will last forever. I am optimistic.''
    A new chairman, president and secretary-general will be appointed.
As host, Indonesia's Minister of Mines and Energy, Subroto,
automatically becomes president. The meeting will also complete a new
budget and receive the report of its secretary-general.
    ''We want to have a normal meeting,'' Calderon said. Although oil
prices were not a priority item on the agenda, he said a review of the
supply and demand situation was in order.
    In answer to a question, Calderon said there would be a shortage of
crude oil if the Iran-Iraq war continued.
    ''We are sure we are going to have a deficit in the first quarter of
next year,'' he said. ''In my opinion we will have to restore
equilibrium in supply and demand.''
    Calderon suggested - he stressed it was a personal opinion - that a
pricing formula could be worked out for 1981 if Saudi Arabia agreed
to match the OPEC benchmark price of $32 per barrel. Saudia Arabia,
the cartel's largest producer, has been charging $2 per barrel less.
    He said quarterly oil price increases of 2 to 3 percent in real
terms next year to cover inflation might be possible if there was
unified pricing.
    ''If they (Saudi Arabia) move to $32, we would be happy to apply the
formula. We are satisfied that we could stay with this for the
year.''
    There had been speculation that Saudi Arabia might agree to increase
its prices to the current OPEC level if the other producers in the
group do not insist on raising theirs still higher.
    OPEC prices increased about 150 percent between the end of 1978 and
last summer after the sharp drop in Iran's output after the
revolution of Ayatollah Ruhollah Khomeini.
    The increase spurred conservation measures in the West, resulting in
a buildup of oil inventories that has insulated consumers so far from
much of the impact of a combined 4 million barrel per day drop in
Iranian and Iraqi exports.
    Calderon said oil consumption by non-communist countries dropped
about 25 percent this year over 1979 but estimated that 1981
consumption should return to 1979 levels.
    
ap-ny-12-14 1553EST
**********

a232  1348  14 Dec 80
AM-War Rdp,490
Iraq Says It Repulsed Paratroop Attack
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq said it repulsed a massive Iranian
paratroop counterattack in the snow-capped foothills of the Zagros
Mountains on Sunday and Iran reported its paratroopers were locked in
trench-to-trench combat with the invaders at the strategic highlands
in western Iran.
    Tehran Radio said Iran will confront the Iraqi ''kidnapping'' of its
oil minister at this week's world oil cartel meeting in Indonesia and
called on the U.S.-led Western armada to withdraw from the Persian
Gulf, lest a superpower confrontation ''imperil the human race.''
    A Baghdad Radio report monitored here claimed Iraq's forces killed
71 Iranian paratroopers in the Zagros foothills, which stand sentry to
the 100-mile-long highway from the Iranian border to the Iraqi
capital. Iran's official news agency Pars said Iran lost six soldiers
but killed ''dozens'' of Iraqis in the fighting.
    War communiques from both sides said the four major cities of
oil-rich Khuzistan Province in southwestern Iran came under heavy
Iraqi shelling. Pars and the Iraqi command reported helicopters struck
the capital, Ahwaz, and residential areas in the besieged refinery
city of Abadan 70 miles south, at the head of the disputed Shatt
al-Arab waterway.
    Pars said the army garrison town of Dezful 80 miles north of Ahwaz
and the highway town of Susangerd 30 miles west were locked in
artillery duels with Iraqi positions. Pars said 122 enemy troops were
killed and one Iranian died, while Iraq claimed 25 Iranian deaths and
loss of 11 of its troops.
    Kuwait, the closest oil-producing Arab country to the Khuzistan war
theater, strongly denied Iranian charges that it allowed Kuwaiti
seaports and desert highways to be used for arms shipments to Iraq.
    ''This is utterly baseless,'' said Kuwait's state minister for
Cabinet affairs.
    Iranian warplanes rocketed a Kuwaiti desert outpost on the border
highway with Iraq twice last month in what Iranian Parliament Speaker
Ali Hashemi Rafsanjani described as a warning against funneling
supplies to Iraq.
    The attacks prompted vows by Saudi Arabia, the world's largest oil
exporter, to go to Kuwait's aid in case of further raids.
    The United States and its Western allies have massed more than 50
warships in the Persian Gulf and neighboring Indian Ocean since the
hostilities broke
out Sept. 22. They were deployed to ensure the flow
of oil from the gulf - about 40 percent of the Western world's needs
- is not interrupted.
    Tehran Radio on Sunday called for a rapid withdrawal of the Western
armada to defuse what it called a threat of a superpower
confrontation that could ''imperil not only the oil-shipping lanes,
but the very existence of the human race.''
    Another of its broadcasts said an Iranian delegation to the
13-nation meeting of the Organization of Petroleum Exporting Countries
in Bali, Indonesia, on Monday will raise the issue of the
''kidnapping'' of Iran's oil minister by invading Iraqi forces.
    The report, monitored here, suggested a showdown with Iraq over the
capture of Mohammed Jawad Bequir Tunguyan and his deputies near
Abadan in late October.
    
ap-ny-12-14 1649EST
**********

a236  1417  14 Dec 80
AM-Iran-Hostages,560
Iranian Official Denies Report About Hostages
By The Associated Press
    A top Iranian official Sunday denied a Kuwaiti newspaper report that
Syrian President Hafez Assad had personally intervened in the
negotiations aimed at release of the 52 American hostages in Iran.
    The official also denied published reports that a deal already had
been struck to free the hostages before Christmas, although he said
speedy U.S. acceptance of Iran's demands could achieve that result.
    Ahmad Azizi, chief spokesman on the hostage crisis for Prime
Minister Mohammad Ali Rajai, said in a telephone interview he had no
knowledge of the Syrian president's alleged involvement in the issue.
    A Syrian government spokesman also immediately denied the Al Watan
report. ''Syria knows nothing about the report published in Al
Watan,'' said the spokesman.
    Syria has been a strong supporter of Iran's revolutionary government
in its continuing war with Iraq over access to the Persian Gulf.
    Quoting ''international diplomatic sources in Washington,'' Al Watan
said Assad, a leading opponent of the United States in the Arab
world, used his contacts with Tehran at the request of an unnamed
''Republican personality close to U.S. President-elect Ronald
Reagan.''
    Al-Watan said ''agreement has been reached to free the hostages
before Christmas despite public denial emanating from Tehran . . . The
hostages will be flown within the next few days to Damascus (capital
of Syria) and then home.''
    Iran last Wednesday denied a report by the leftist Beirut newspaper
As-Safir that the hostages would be released on Christmas Day as a
result of a compromise agreement between Iran and the United States on
Iran's release demands.
    In Tehran, Azizi reaffirmed that Iran soon would announce the result
of its now 12-day-old consideration of the latest U.S. response to
the four conditions proposed by Iran for release of the hostages.
    But he refused to predict the timing of such an announcement and
indicated the Algerian diplomats acting as intermediaries between Iran
and the United States would likely remain in Tehran for several more
days.
    A spokesman for the Algerians, who are participating at Iran's
request, also confirmed the diplomats had no immediate plans to leave
the country.
    Azizi on Saturday described the U.S. response delivered here Dec. 4
as ''basically positive'' but declined to specify as to when the
Iranian reply would be completed.
    Executive Affairs Minister Behzad Nabavi, who heads the commission
studying the issue, has indicated Iran will propose in its answer ways
for the U.S. government to implement the four conditions adopted by
the Parliament, or Majlis, on Nov. 2.
    The conditions are return of the wealth of the late Shah Mohammad
Reza Pahlavi and his relatives, unfreezing Iranian assets in U.S.
banks, withdrawal of pending U.S. lawsuits against Iran and a pledge
of non-interference in Iran's internal affairs.
    U.S. officials have said they have no problem with two of the
demands - to unfreeze Iranian assets and to stay out of the country's
affairs.
    However, there are legal complications associated with the other two
conditions and it is this area that is the focus of Iranian
attention.
    Nabavi has already publicly rejected a U.S. proposal to allow
American courts to decide who owns the wealth of the shah's estate.
    A new Iranian message to Washington and a subsequent reply by the
United States seemed likely to prevent any solution of the now
13-month-old stalemate before Christmas.
    
ap-ny-12-14 1718EST
**********

a267  1710  14 Dec 80
AM-60 Minutes,270
Iranian President Says Carter Lost Motivation To Free Hostages
    NEW YORK (AP) - Iranian President Abolhassan Bani-Sadr said Sunday
that President Carter lost his motivation to win release of the 52
American hostages after he lost his re-election bid.
    ''It is probably true that Jimmy Carter wanted to solve the problem
and free the hostages in the past,'' Bani-Sadr said in an interview
broadcast on CBS-TV's ''60 Minutes'' program.
    ''But there's a difference between Jimmy Carter before the elections
and Jimmy Carter after the elections. That is, the motivation to
bring about the release of the hostages is gone.''
    Bani-Sadr said Carter ''either wants to solve the problem in such a
way that criticism against him is minimized, or he will leave the
problem for Mr. (Ronald) Reagan,'' the president-elect.
    CBS, which interviewed Bani-Sadr in Iran, also broadcast an
interview in which the commander-in-chief of Iran's Western Front Army
said he expected the U.S. to intervene on behalf of Iraq if the Arab
nation is disabled in its border war with Iran.
    ''American navies are near our border. And so, after defeating Iraq,
we will fight the United States,'' said Iranian Col. Hassar Attarian.
He declined to elaborate.
    Bani-Sadr, meanwhile, said the U.S. and Iran could one day establish
cultural relations as long as his people were free ''from the
domination of the United States.''
    Asked if he agreed that the U.S. and Iran must become allies to
insure their security, Bani-Sadr replied:
    ''If you mean the power of the United States to be allied with Iran,
it is exactly like the unity of the wolf and the sheep . . . in any
kind of alliance with the United States, we will be the sheep.''
    
ap-ny-12-14 2011EST
**********

a268  1717  14 Dec 80
AM-Afghan,290
Reports Say Rebels Attack Air Base
    PESHAWAR, Pakistan (AP) - Moslem rebels fighting the Soviet-backed
Afghan government attacked the main air base used by the Soviets to
supply their troops, according to reports here and in Iran.
    Mohammed Yousef, a self-described rebel leader, said in an interview
Sunday that 34 insurgents perished in the assault on the Bagram air
base 48 miles north of the Afghan capital of Kabul.
    He did not say when the attack occurred and said he did not know if
any Soviet soldiers were slain in what he called ''fierce fighting.''
    In retaliation, Soviet troops approached the nearby village of
Share-e-Kunah and used loudspeakers to order residents out of their
mud-walled houses, Yousef said. When no one came out, artillery fire
raked the village and 50 people were killed, he added.
    Iran's Tehran Radio said several Soviet soldiers were killed and a
Soviet tank and a personnel carrier were destroyed in the Bagram
attack, but it gave no date. The broadcast also said Afghan guerrillas
killed 14 Soviet soldiers and destroyed two tanks in a raid on the
village of Khawajeh.
    Iran's revolutionary Islamic government has expressed its support of
the rebels.
    Western reporters have been banned from Afghanistan and there was no
independent confirmation of the reports.
    Officials at the airport in New Delhi, India, said a commercial
flight arrived from Bagram Sunday and then returned to Kabul as
scheduled. A passenger arriving in New Delhi on that flight said the
Bagram airport was functioning normally.
    The airport is believed to be the largest Soviet-controlled airfield
in the country. The Soviet Union sent some 85,000 Soviet soldiers
into Afghanistan last December to help the country's Marxist
government in its fight against the anti-communist insurgents.
    
ap-ny-12-14 2017EST
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n999  1727  14 Dec 80
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Persian Gulf 'Holy War' at a Standstill, But Moselm Liturgy More
Fierce
By JOHN KIFNER
c.1980 N.Y. Times News Service
    ABADAN, Iran - At the Friday prayers in this besieged city, the
worshippers have added a new coda to the traditional Moslem liturgy
wishing good health to the Prophet Mohammed and his family.
    ''Margh Bar Saddam Yazid Kohfer,'' the bearded men, many with rifles
beside them, cried. ''Death to Saddam Yazid, the Infidel.''
    The linking of President Saddam Hussein of Iraq with Yazid, who to
Shiite Moslems is the leader of the false Caliphate who slew Hussein,
the son of the Imam Ali, rightful successor to the Prophet, is but
one example of the religious fervor gripping the Iranian defenders
along the battleline of the gulf war.
    It is this sense of a religious war - that this is a struggle
''between Islam and unbelief'' - that is perhaps the strongest
impression left by a four-day tour of foreign and Iranian journalists
by transport planes, helicopters, trucks and buses through embattled,
oil-rich Khuzistan province.
    The tour also left the impression of an Iranian military that,
caught napping, disorganized and dispirited by the Iraqi attacks
nearly three months ago, has pulled itself together in a fashion that
has startled many observers.
    The key cities of Abadan and Ahwaz appear to have suffered
surprisingly little damage, considering that they have been nearly
surrounded and under artillery bombardment since mid-September. While
the tour was official and limited, it seemed that of those left in
the city - mostly men prepared to fight - morale was high.
    This is a somewhat curious war. On paper, both nations possess
enormous destructive capability. Loaded with oil wealth, both the
late shah and Hussein purchased - mostly from the United States and
the Soviet Union, respectively - vast quantities of jet warplanes,
tanks, artillery and sophisticated missile systems to further their
dreams of regional domination.
    Yet, few hard blows have been struck.
    Most of the warfare appears to consist of lobbing artillery shells
from great distances, often at night. With the exception of the
struggle for Khorramshahr, where the fanatical defense of the
revolutionary guards shocked the Iraqis, there have been few actual
battles.
    Journalists who have visited the front on both sides have noticed
that tanks, other armored vehicles and self-propelled artillery
pieces - weapons meant to be mobile and used to spearhead or support
an attack - are instead dug-in and used as fixed, static gun
positions. Many shells appear to be falling in sand and marsh.
    Given the relatively low intensity with which the war is being
fought, and the intransigence of the leaders on both sides, it
appears the conflict could drag on for weeks or months. There is
always the possibility that one side or the other could launch a
desperate strike, aiming at a fatal blow.
    The rainy season, which will turn much of the desert to impassable
muck, is just beginning here, presumably further slowing combat. Both
sides, however, have been constructing military roads, raised high on
dike-like embankments.
    ''We were taken by surprise,'' conceded Capt. Jossien Ashfar,
commander of a unit of tanks and armored personnel carriers dug in on
the ''Allah-o-Akhbar (God is Great) Heights'' - a little ridge rising
about 20 feet above the plain - overlooking Susangird.
    However, he said, the Iranians had gone on the offensive,
recapturing Susangird and driving the Iraqis back. Gesturing to the
mixed force of regular soldiers and revolutionary guards, he added:
''Their lives mean nothing to them, they are really dedicated.''
    Eight weeks ago, an Iraqi colonel sat in the dugout beneath his
armored personnel carrier in the desert nine miles outside of Ahwaz
and told a group of foreign journalists that the provincial capital
could easily be captured as soon as the Ba'athist political leaders
ordered it. It was, Iraqi officials said, ''surrounded on three
sides.''
    Iranian military planes are still flying in and out of Ahwaz
airport. While the main intersection - Khomeini Square - has been
heavily hit and local officials handed out a list of 53 incidents in
which artillery shells struck houses, shops and roads and killed 19
people in a five-day period in October, most of the city seems intact.
    There are piles of melons, pomegranates, oranges and other fresh
fruits and vegetables in the markets and herds of sheep waiting for
slaughter at the traffic circle at the edge of town.
    The situation seemed grimmer, but no less determined, here in the
oil refinery city of Abadan, a prime target of the Iraqi attack since
the beginning of the war.
    Of the 400,000 people who lived here and in the surrounding villages
before the war, Farivar Batmanghlich, the local governor said, only
about 150,000 remain.
    ''The town is not deserted, but the women, old men and children were
told to leave because of the heavy bombing and damage. The young men
are at the front,'' he said.
    (MORE)
    
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n999  1759  14 Dec 80
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BC-IRAN-FRONT 1stadd
NYT ABADAN: he said.
    More than 1,000 civilians had been killed by the shelling, said
Hojjatolislam Golan-Hossein Jami, the Friday prayers leader, and the
artillery had fallen on schools and hospitals as well as private
homes.
    Dozens of the giant oil tanks surrounding the refinery, the largest
export refinery in the world, had been burnt out, some of them split
open. Officials would not allow journalists inside the refinery, but
some sources believe that the damage is not so extensive as might be
thought from the dense clouds of black smoke that darkened the sky
here in the first days of the war.
    But the Iraqis are continuing to pump shells into the refinery and
at night the flames silhouette the outlines of the buildings in the
center of town.
    The Iraqi positions are so close here - from the cargo sheds on the
waterfront the defenders look across a couple of hundred yards of
river to Iraq itself - that their artillery has the characteristic
thudding sound usually associated with outgoing, rather than
incoming, fire.
    The road to Ahwaz has been occupied by the Iraqis, and the road
leading south is under artillery fire, although some trucks get
through, like the one selling canned fruit to the soldiers the other
day.
    Most of the supplies, reinforcements and visitors come in by army
helicopter, skimming only a few feet over the water and marsh onto
Abadan island from bases in other gulf ports.
    The helicopters land at a makeshift base in the desert outside of
the city. Among the mud huts nearby, an entrepreneur has built a tea
shop with the wood from artillery shell packing boxes and seats made
of the crates that held 120-millimeter mortar rounds.
    The other day, lines of refugees, their belongings in boxes and
suitcases held with rope, waited at the strip for a ride out from the
helicopters, which brought in new troops from a military police unit,
nurses and ammunition.
    The air crews retained traces of an American accent and a certain
swagger from their training days in the states. They had the word
''Imperial'' carefully inked out on the embroidered patches on their
flight suits.
    ''We are in good shape now, with the aid and assistance of the
people,'' said Col. Nassir Shakeriz, the 41-year-old commander of the
garrison, which consists of regular soldiers, sailors, naval
commandos, revolutionary guards, clergymen and almost anyone who can
hold a gun.
    The Iraqis had twice crossed the Bahmanshahr River, which separates
Abadan island from the mainland, he said, but had been thrown back.
In the past week, he said, the Iranian forces had advanced about 700
meters.
    The Iraqi advance is marked at the Zolfaqari section of the island
by the wreckage of several vehicles including a big orange
Japanese-made front-loader marked ''State Company for Pulp Paper
Industry, Basra, Iraq.'' Hussein has commandeered most of the
state-owned construction machinery for the war effort.
    The palm grove along the river is now an Iranian gun position,
manned by both soldiers and youths in dungarees and T-shirts. A
visiting dentist was checking the men's teeth one day last week, when
suddenly artillery shells came whistling in on their position,
sending everyone diving for cover. One soldier was killed.
    In Abadan itself, steel shutters are drawn down over the fronts of
many of the shops in the old downtown commercial district near the
Shatt al-Arab River. The once-crowded streets seem empty, as
strolling soldiers step aside for the occasional jeep, truck or
motorcycle.
    A handful of shops and a few streetcorner carts still sell canned
fruit, cigarettes, soap and other goods. There are two tea shops near
the main intersection and at night, a single restaurant offers a
meagre menu.
    But, the streets are swept down each morning and there is no sign of
garbage strewn about. The public baths are open and, although many
buildings are pockmarked or crumbling from artillery fire, there is a
strangely neat air about the quiet city.
    On Friday, the regular religious holiday in Moslem countries - which
seems almost a scheduled break in the war - groups of soldiers,
revolutionary guards and local residents like Mustapha Sarandy, the
local muscleman and boxing champion, a friendly bear of a man wearing
dungarees, a helmet, hunting knife, hand grenade and an impressive
paunch, wander about the streets.
    Hundreds of the fighters, many of them singing revolutionary songs,
marched to the main mosque where the entrance, with its intricate
tile designs, is fortified by sandbags.
    There, Hojatoleslam Jami, a short, bearded man who preaches standing
on a chair holding a rifle, told them that ''We are confronted with
the servants of Satan. We must not be afraid of death. Death is
better than living under the power of Saddam Hussein. We would rather
be killed than controlled by the imperialists.''
    
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a906  1827  14 Dec 80
BC-Yearend-Religion, Adv 80,750
$adv 80
For Release In Yearend Editions
Christian Conservatives - An About-Face In 1980
By GEORGE W. CORNELL
AP Religion Writer
    Christian conservatives, who long had spurned ''meddling in
politics,'' about-faced in 1980 and plunged zealously into the U.S.
election campaign, apparently with major impact on the national swing
to the right.
    The turnabout was a major religious transition, a realignment of the
church activist landscape. And the mobilization - in itself a key
news story in religion in 1980 - also seemed certain to affect public
policy debates and their outcomes.
    Chief among causes supported by conservative Christian forces - some
of them shared with the incoming president - are moves to ban most
abortions, to sanction voluntary prayer in public schools and to clamp
down on pornography and drugs.
    A conservative trend also was apparent in the unfolding disciplinary
stance of Pope John Paul II for Roman Catholics, and in the decisions
of the United States' largest Protestant body, the Southern Baptists.
    The Southern Baptists joined the fight against abortion, demanded
stiffer controls on teaching about the Bible, and elected staunchly
conservative leadership.
    Their new president, the Rev. Bailey Smith of Del City, Okla.,
distressed Jews and Christians, including many Baptists, with remarks
about Jews. One comment - that God doesn't hear the prayers of Jews -
came at a summer rally held to marshal conservative clergy for the
election campaign.
    Mainline churches historically have sought to inject their
principles into socio-political affairs, and were criticized for doing
so by Christian conservatives. In 1980, the roles were reversed, and
it was mainline church leaders who objected to the conservatives'
tactics, positions and the ''targeting'' of some candidates for
defeat.
    Deflecting the criticism, such conservative coalitions as the Moral
Majority, Christian Voice and Religious Roundtable proudly claimed
extensive victories in their crusade for so-called ''pro-morality''
candidates.
    The year brought another milestone for women in religion, with the
election of Marjorie Matthews of Michigan as a bishop by the United
Methodists, the nation's second largest Protestant body. She became
the first female bishop in a mainline denomination in modern times.
    Elsewhere, the clamor continued for religious equity for women. The
United Presbyterian Church was threatened with a split over a new
policy insisting women be included among local church officers. And
some Roman Catholic groups kept up pressure for admission of women to
the priesthood, a move the pope has rejected.
    The pontiff, who visited Africa, France, Brazil and West Germany in
1980, took strong stands against other reformist moves and dissent
within the church. But he backed progressive social policies,
insisting on help for the poor and the upholding of human rights.
    With the backing of a world synod of bishops, Pope John Paul
reaffirmed church rules prohibiting contraception and barring
divorced, remarried Catholics from communion. He rejected optional
celibacy for priests, and tightened restrictions on releasing priests
from their vows.
    But with Vatican approval, U.S. bishops unveiled a plan to accept
dissident, married Episcopal priests as Roman Catholic priests.
    Struggles over a separate U.S. church and state continued in 1980,
with the U.S. Supreme Court allowing observance of religious holidays
in public schools, but barring rules calling for the posting of the
10 Commandments in classrooms.
    Tensions sharpened between churches and federal regulators,
particularly the Internal Revenue Service, and an interfaith
conference on the subject was scheduled for 1981.
    And bowing to papal injunction, the Rev. Robert J. Drinan, a
congressman and priest, left party politics.
    Elsewhere, Islamic militancy still lapped the Middle East, and
despite some tempering signs, kept 52 Americans hostage in Iran.
    Many theologians protested the Vatican's censoring of the Rev. Hans
Kung of West Germany for questioning papal infallibility, and Kung
drew crowds on a U.S. tour.
    Church workers met harsh reprisals in some areas. Roman Catholic
Archbishop Oscar Romero was assassinated in El Salvador, and at least
13 priests and nuns were slain in the South American nation.
    Pressures on believers increased in the Soviet Union, and the World
Council of Churches protested trials of dissident Russian Orthodox
clergy.
    But in Communist China, Protestants held their first national
congress in 20 years, and 50 churches were reopened.
    End Adv for Yearend Editions
    
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a279  1850  14 Dec 80
AM-Jack Carter,160
Carter's Son Blames Iran Crisis For Dad's Defeat
    ATLANTA (AP) - President Carter's son, Jack, said in an interview
broadcast here Sunday that the Iranian crisis and not a conservative
trend in the country was the main factor in his father's defeat.
    Interviewed by WGST radio, Jack Carter said his father's defeat was
''fairly embarrassing,'' although neither of his parents ''are taking
it hard in the sense of being emotionally strung out about it.''
    He said the president's mother, Lillian Carter, took the defeat
''harder'' than either of his parents.
    ''The hostages in Iran built up a feeling of frustration among the
people,'' Carter said of the 52 Americans held in Iran since Nov. 4,
1979.
    ''The election falling one year after the hostages' capture and the
publicity surrounding it was the primary reason my father lost. The
conservative trend was not the main reason.''
    He said he wasn't sure how history will view his father's four-year
term, but he called the agreement reached between Egypt and Israel at
the Camp David summit ''the greatest foreign affairs coup in modern
times.''
    
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n999  1918  14 Dec 80
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BC-PEOPLE-IN-THE-NEWS Undated
c. 1980 N.Y. Times News Service
    The suspense is hardly killing, but this being the first Monday
after the second Wednesday in December, 538 citizens will be meeting
in their respective state capitals and the District of Columbia
Monday to choose the next president and vice president of the United
States.
    Based on the results of the Nov. 4 election, Ronald Reagan and
George Bush are expected to defeat Jimmy Carter and Walter Mondale by
a vote of 489 to 49. But it won't be official until Monday's
electoral votes are cast and then counted by the president of the
Senate in the Senate's presence next month.
    Some people - about two-thirds of the electorate, according to a
recent poll - think the Electoral College system should be replaced
by a direct popular vote. But electors, it seems, take their duties
seriously.
    ''It is the law,'' Charles P. Bailey of Westfield, N.J., said Sunday
in explaining why he would be making the trip to Trenton Monday to
join the state's 16 other electors in fulfilling their constitutional
mandate. Although he has been in politics for 40 years and has held
an array of political and governmental posts including mayor of
Westfield, Bailey said he had never voted for a president before and
he was looking forward to it. He plans to vote for the Reagan-Bush
ticket.
    In Minnesota, Alice S. Keller, is also looking forward to it, but
not as much. ''I wish there were more of us,'' said Mrs. Keller, one
of 49 electors pledged to Carter and Mondale.
    The first woman to head a statewide system of higher education was
named in Florida last week. She is Barbara Newell, who on March 1
will become chancellor of Florida's nine state universities. Mrs.
Newell, a former president of Wellesley College, was unanimously
approved by Florida's nine-member Board of Regents after a yearlong
search. After her appointment to the $79,200-a-year position, Mrs.
Newell said she had been reluctant to accept the job until the
Regents assured her of a strong role in drawing up the budget and in
selecting university presidents.
    Shortly after her appointment, Mrs. Newell, a 51-year-old widow,
returned to Paris to finish her tour as the U.S. envoy to the U.N.
Economic, Scientific and Cultural Organization.
    Last year, Adolph Dubs was killed in Afghanistan while serving as
U.S. Ambassador.
    Two weeks ago, his widow, Mary Ann Dubs, arrived in Pakistan to
distribute $28,000 she had helped raise for the estimated 1.2 million
Afghan refugees living in Pakistan.
    Sunday, Mrs. Dubs, a founding member of an Afghan relief committee
based in New York, was awarded the ''Star of the Great Leader,'' the
second-highest Pakistani honor a foreigner can receive, by Foreign
Minister Agha Shahi.
    The citation praised her efforts on behalf of a ''noble cause.''
    None may affect their fate, but some symbolic gestures on behalf of
the 52 American hostages being held in Iran seem to work out better
than others.
    A little over a year ago, for example, Bill Schadt and George
Marquart became outraged when they saw television footage of American
flags being burned in Tehran. The two men started a drive in their
little community of Lincoln, Iowa, to fly a flag for each captive
until the hostages were released.
    On Friday, after 54 weeks, the flags came down. The problem, Schadt
said, was that people stole the flags, and at $45 apiece, it grew too
expensive for the town of 183 to keep replacing them.
    ''We had 24 on Main Street, and we've replaced them all at least
once,'' Schadt said.
    ''It just got to be too much,'' he said.
    In Tuscola, Ill., on the other hand, nothing seems to stop Kyle
Beachy, who has emerged as the mainstay in a volunteer effort to ring
the United Methodist Church bell 52 times each day.
    Kyle, 9, leaves his fourth-grade class each school day and walks
across the street to the church lobby, where he gives a tug on the
bell rope for each hostage.
    ''I like to ring it,'' he said, ''but I wish they would come home. I
ring the bell and I pray. It's about all we can do.''
    
nyt-12-14-80 2219est
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a909  1927  14 Dec 80
BC-Yearend-Hostages, Adv 80-2 Takes,500-1,000
$adv 80
For Release In Yearend Editions
The Hostages' Year Of Captivity
By CHARLES J. HANLEY
Associated Press Writer
    The young Marine writing from Tehran last Christmas season was
determined to be hopeful about the year that lay ahead.
    ''Since we have the Americans and the Lord on our side, we will be
home sooner or later,'' he said. The seasons have come full circle and
he still is not home.
    When their day of freedom does arrive, the 52 Americans captive in
Iran will remember 1980 as four walls, a monotony of faces and places,
a blur of card-playing and reading. The sameness of their days was
broken by a few cherished visits by outsiders, by the occasional
thunder of demonstrators beyond the gates, and for some by dreaded
sessions with interrogators. The blankness of their nights was
sometimes shattered with unexplained sounds - the crackle of gunfire
or rumble of explosions.
    For most Americans, it was the year of Ronald Reagan, of Mount St.
Helens, of the Phillies. But the Americans held hostage in Iran lived
by a different calendar.
    There was the Persian New Year, March 21, when they were given
''goodies and cookies.'' There was July 27, when those all around them
rejoiced over news from afar - the shah was dead. There was Sept. 22,
when Iraqi warplanes attacked Iran's cities.
    The year began with the arrival of Secretary-General Kurt Waldheim
in Tehran on New Year's Day to launch a U.N. conciliation attempt that
collapsed two months later in a wrangle over whether the hostages'
young captors would surrender them to the control of Iranian
authorities.
    Hopes for an end to the stalemate ebbed and flowed regularly through
1980. But in their letters the hostages gave little sign they were
aware of what was happening beyond their walls, dwelling instead on
matters of day-to-day existence.
    ''Most of us have lost between 15 and 25 pounds, and trying to sleep
is pretty hard,'' Marine Sgt. Johnny McKeel Jr. wrote at about the
time of Waldheim's visit.
    At the beginning, the hostages were blindfolded and bound, tied to
chairs day and night. Then conditions eased. After the first couple of
months, life as a hostage ''sort of became life itself,'' Richard
Queen said after the Iranians freed him in July. He said things
relaxed to the point that hostages and guards occasionally would play
table tennis or board games together.
    In February, Iranian leader Ayatollah Ruhollah Khomeini's son,
Ahmad, and Greek Catholic Archbishop Hilarion Capudji visited the
hostages at the U.S. Embassy and pronounced them in ''perfect
health.'' A month later, an Iranian physician examined them and said
some showed signs of ''mental distress.''
    Hostage Barry Rosen, 36, the embassy press attache, was seen on
American television telling the doctor he suffered from ''a condition
where I constantly have things going wrong inside of me.''
    On Easter Sunday, April 6, three American clergymen held services at
the embassy, the most recent U.S. visitors to the hostages as a
group. A week later, two Swiss representatives of the International
Red Cross examined them. They are the most recent non-Iranians known
to have seen the hostages.
    MORE
    
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a910  1937  14 Dec 80
BC-Yearend-Hostages, Adv 80-1st Add,500
adv 80
For Release In Yearend Editions
UNDATED: the hostages.
    A turning point came April 25, although the hostages apparently had
no clue to what happened until weeks later. A U.S. commando mission
to rescue the Tehran captives broke down in failure in the Iranian
desert, and the militants holding the embassy announced they had moved
the Americans to other cities to foil future ''plots'' to save them.
    Whether the hostages were indeed moved then is still a mystery.
    Louisa Kennedy, wife of diplomat Moorehead C. Kennedy Jr., says she
is convinced her husband has remained in the embassy compound.
    ''I have the sense from the letters that he was right where he's
been since last year,'' said Mrs. Kennedy, who received letters in
early December.
    After the abortive commando raid, the U.S.-Iranian impasse deepened,
and through the summer Iranians' attention focused instead on the
bitter political infighting among the revolutionaries. It took months
to organize a Parliament, which was to decide the hostage issue, and
still longer to select a prime minister and Cabinet.
    The time must have weighed heavily on the hostages. They struggled
to remain good-spirited in their letters.
    ''I am in good health and holding up as well as can be expected.
Tell everyone I am proud of them,'' Consul-General Richard M.
Morefield wrote his family in August.
    Even when the question of their future finally came before the
Parliament, any Persian-speaking hostage with access to newspapers or
broadcasts would have little cause for optimism.
    ''The hostage-taking is a revolutionary action that has frightened
America completely,'' proclaimed deputy Mossavi Jahan Abadi during
parliamentary debate Sept. 18. ''We should take revolutionary
advantage of the act.''
    A few days later, the Iranians ''froze'' the hostage issue. Iraqi
jets had attacked the Tehran airport and other Iranian targets, and
Iraqi troops struck across the border. Iran was put on an emergency
footing.
    The embassy militants said the captives, supposedly shuffled among
various Iranian cities since April, were being moved again, this time
away from the war-torn western border.
    But the Parliament later returned to the hostage debate, and on Nov.
2 announced four conditions for the Americans' release. As the year
neared an end, the United States and Iran negotiated the fine points
of the demands, and reports persisted that the hostages had been
reassembled at the embassy, or taken to Tehran's main prison to await
release.
    The seasons swung around. ''Death to Reagan'' banners supplanted
''Death to Carter'' signs in Iran. The hostages spent Thanksgiving
1980 as they had spent Thanksgiving 1979, and the Christmas season was
equally joyless.
    Yet somehow, their spirits seemed unbowed.
    ''This is a time for patience and for calm, a time for cool
resolve,'' Charge d'Affaires Bruce Laingen, the top diplomat among the
hostages, told a radio reporter by telephone. ''And a time for
confidence that it will soon be over.''
    End Adv for Yearend Editions
    
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a289  2027  14 Dec 80
AM-OPEC, 1st Ld, a225,250
Eds: Updates with Suharto calling for Iran-Iraq peace.
By KENNETH L. WHITING
Associated Press Writer
    BALI, Indonesia (AP) - President Suharto of Indonesia on Monday
opened the first major meeting of the Organization of Petroleum
Exporting Countries since the Persian Gulf war started 85 days ago
with an appeal to Iran and Iraq to seek peace.
    Delegates from the warring countries heard Suharto's words without
visible emotion. Their conflict has left the 13-member OPEC in
disarray, and restoration of at least a facade of unity is the main
purpose of the conference.
    ''We must be vigilant that this OPEC meeting does not become an
arena which weakens the unity and integrity of our organization,''
Suharto said. ''We are obliged to restrain ourselves and to act
calmly.''
    He acknowledged that past OPEC meetings were often beset by tension,
''in fact, even explosive tensions.''
    Suharto said OPEC was in a state of deep consternation because of
the gulf war.
    ''I would like to make an honest appeal here from Bali to our
beloved brothers who are now in dispute, Iran and Iraq, to seek the
best conceivable solution to their conflict as soon as possible.
    ''Thus, not only the two peoples there will enjoy happiness, but it
will also consolidate OPEC's strength to be contributed for the
benefit of the world's well-being in general. Hopefully, the current
OPEC meeting in Bali could produce fresh wind for mutual
understanding, fraternal relations and close harmony amongst its
members.''
    Conference sources, 4th graf
    
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n999  2111  14 Dec 80
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Eds, updates
By PAMELA G. HOLLIE
c. 1980 N.Y. Times News Service
    BALI, Indonesia - As officials of the Organization of Petroleum
Exporting Countries struggled to pave the way for a smooth meeting to
set prices and production levels, delegates from warring Iran and
Iraq clashed bitterly at a preconference dinner here Sunday night,
OPEC sources reported.
    A confrontation between the two could break up the meeting - which
sources here say could result in a 5 to 10 percent price rise for oil
- though OPEC planners have taken pains to prevent such a rift at the
sessions that start today.
    ''Unity is our first priority,'' said Humberto Calderon Berti,
Venezuela's oil minister. To achieve this, he said, the conference
would ''avoid any point that could lead to confrontation.''
    ''We have a challenge to restore the normalcy of OPEC,'' Calderon
Berti added. ''We are going to prove to everyone that OPEC is
strong,'' he said.
    Fresh from meetings in Paris and Kuwait aimed at producing an
orderly meeting here, Calderon Berti said other member nations were
optimistic that OPEC would overcome its problems.
    ''We think these problems we face now are transitory ones,'' he said
of the Iran-Iraq conflict. Conference sources said the Iranian and
Iraqi delegates here had been involved in a ''bitter outburst.''
    ''Iran and Iraq were on the point of clashing by hand and were
pulled back,'' one source said.
    Generally the effects of the Iran-Iraq war on world oil supplies
have been cushioned by high inventories. By drawing down their oil
stocks and reducing consumption, all but a few oil importing
countries have been able to weather the last few months.
    In addition, Saudi Arabia has raised its daily production from 9.5
million barrels a day to 10.3 million to help make up the loss caused
by the war.
    But it is unlikely that the Iraq-Iran war can be ignored much
longer. The level of production from each of the two warring
countries will affect OPEC's decisions this week.
    For the moment, Calderon Berti said, OPEC was predicting a shortfall
in oil production in the first quarter of 1981 of three to four
million barrels of oil daily, and under such conditions OPEC price
hawks such as the African members seem likely to press for as high a
price as the market will bear.
    It is not known what base would be used for determining the 5 to 10
percent price rise that is beging predicted. The current official
basic OPEC price is $32 a barrel, although Saudi Arabia's is $30. A
barrel contains 42 gallons.
    Calderon Berti, the only OPEC delegate to speak to reporters
officially, has said any rise could be based on $32. He also said
after meeting other OPEC members Sunday that he would support
moderate increases in 1981 and a long-term formula for restoring
equilibrium between supply and demand, as well as for setting prices.
    Gradual, automatic price adjustments would be based on a number of
factors, including inflation. If such a system were to go into effect
Jan. 1, Calderon Berti estimated, crude oil prices would climb about
2 percent to 3 percent a quarter.
    Ahmed Zaki Yamani, Saudi Arabia's oil minister and reputed leader of
the moderate forces, has also advocated a formula to assure long-term
stability, but it is not known how similar the formulas would be.
    OPEC's press secretary has refused to brief the press. The ministers
from OPEC's 13 member nations are meeting in a separate, walled
compound, the Pertamina Cottages, a seaside resort owned by
Indonesia's state oil company, behind armed guard. Only occasional
word has come from individual delegates or aides who have visited the
news facilities 45 minutes away.
    Recently, oil has begun to flow out of Iran and Iraq. Iraq is now
exporting a million barrels a day through pipelines to Turkey, Syria
and Lebanon, compared with 3.2 million before the war began in
September. And, according to a recent article in the Middle East
Economist Survey, Iranian oil exports stopped by the war have been
resumed in small part and may be 300,000 to 400,000 barrels a day,
from the Kharg Island, Lavan and Sirri terminals in the Persian Gulf.
    The improved supply picture has softened crude oil spot prices.
According to the Petroleum Intelligence Weekly, an industry journal
based in New York, the news that Iraq had resumed production
depressed spot crude oil prices there by as much as $4 a barrel from
a peak of $42 at the height of the war. Even at these lower prices,
however, there was very little demand, PIW said.
    With the market already tested at the $40 level, moderate OPEC
members such as Saudi Arabia may try to encourage slow price growth.
At last week's meeting of the Organization of Arab Petroleum
Exporting Countries in Kuwait, the 10 nations, seven of which also
belong to OPEC, endorsed the need for ''moderation'' here.
    Until a few days ago, it was uncertain whether this meeting would be
held.
    Since the Iran-Iraq war, OPEC has postponed or canceled several
meetings, including the 20th anniversary celebration planned in
Baghdad, Iraq, last month.
    Sheik Mana Said al-Otaiba, the oil minister for the United Arab
Emirates, had urged that the meeting here be postponed if the war
between Iran and Iraq continued. The UAE had indicated that it would
not attend under those conditions.
    But, following the one-day OAPEC meeting, it became apparent that
all of the members would attend the Bali conference in a show of
cooperation. Conspicuously absent is Iran's oil minister, Mohammed
Jawad Baqir Tunguyan, who is being held prisoner by Iraq.
    
nyt-12-15-80 0012est
**********

a034  0211  15 Dec 80
PM-OPEC, Bjt,540
Oil Producers Seek Unity At Bali Meeting
Laserphotos NY4, BAL1
By KENNETH L. WHITING
Associated Press Writer
    BALI, Indonesia (AP) - The 13-nation OPEC oil cartel met today in a
bid to restore ''at least a facade of unity'' despite the 85-day-old
war between two of its members, Iran and Iraq. The oil producers were
also expected to make plans for a new round of price hikes.
    Opening the first major OPEC meeting since the Persian Gulf war
erupted Sept. 22, Indonesia's President Suharto appealed to Iran and
Iraq ''to seek the best conceivable solution to their conflict as soon
as possible.''
    ''Hopefully, the current OPEC meeting in Bali could produce fresh
wind for mutual understanding, fraternal relations and close harmony
amongst its members,'' he said.
    The delegates from Iran and Iraq, confronting each other on this
idyllic palm-dotted tourist island, showed no outward response to
Suharto's plea.
    Their conflict has cut off a combined total of 4 million barrels a
day in oil exports and spurred disarray among other members of the
Organization of Petroleum Exporting Countries who hope to restore some
sort of unified front.
    ''We must be vigilant that this OPEC meeting does not become an
arena which weakens the unity and integrity of our organization,''
Suharto said.
    The challenge before OPEC is ''to restore unity,'' Venezuelan Oil
Minister Humberto Calderon Berti said Sunday, on the eve of the
meeting. ''We are going to avoid any points which can lead to
confrontation. I don't believe the problems we have had will last
forever. I am optimistic.''
    OPEC protocol experts took the unusual step of separating Iran and
Iraq, whose delegates traditionally were seated side-by-side in the
alphabetic arrangement of past meetings.
    Iran was expected to use the meeting to repeat its demand fo the
return of Iranian Oil Minister Mohammed Jawad Bequir Tunguyen, who was
captured by IPAQI TROOPS IN L.TE Octobernear the Iranian oil
refinery center of Abadan.
    Iraq claims Tunguyen is a prisoner of war and refused to hand him
over at the Bali meeting despite the urging of some OPEC members who
suggested such a step could improve the chances for peace.
    Because of the war, there was speculation that OPEC members might
not be able to get together on a new formula for oil prices. But the
Venezuelan minister predicted they would try again to achieve the
unified pricing policy that eluded them at their meeting last
September in Vienna.
    He predicted the Iran-Iraq war would help dry up the world oil glut,
stemming from economic recession and conservation, that has prevented
OPEC hard-liners from getting the top dollar prices they sought.
    Calderon Berti said oil consumption this year by non-communist
countries was about 25 percent less than in 1979. But he said 1981
consumption should return to 1979 levels.
    He suggested that a pricing formula could be worked out for 1981 if
Saudi Arabia agreed to match the OPEC benchmark price of $32 per
barrel. Saudia Arabia, the cartel's largest producer, has been selling
its oil for $2 a barrel less than the base price.
    Calderon Berti said quarterly price increases of 2 to 3 percent in
real terms next year to cover inflation might be possible if there was
unified pricing.
    
ap-ny-12-15 0512EST
**********

a040  0244  15 Dec 80
PM-Bani-Sadr,240
White House Dismisses Claim of Possible Carter Hostage Apathy
    NEW YORK (AP) - The White House has dimissed as ''ludicrous'' an
assertion by Iran's president that President Carter may have lost
interest after the election in securing the release of 52 Americans
held hostage in Iran.
    ''It is probably true that Jimmy Carter wanted to solve the problem
and free the hostages in the past,'' Iranian President Abolhassan
Bani-Sadr said in an interview broadcast Sunday on CBS-TV's ''60
Minutes'' program.
    ''But there's a difference between Jimmy Carter before the elections
and Jimmy Carter after the elections,'' he said. ''That is, the
motivation to bring about the release of the hostages is gone.''
    Bani-Sadr said he thought Carter ''either wants to solve the problem
in such a way that criticism against him is minimized, or he will
leave the problem for Mr. (Ronald) Reagan,'' the president-elect.
    Asked about the Iranian's charge, a White House spokesman said
Sunday night that ''We wouldn't want to dignify that with a comment.
It's just ludicrous. The record speaks for itself.''
    CBS News, which interviewed Bani-Sadr in Iran, also broadacast an
interview in which the commander-in-chief of Iran's Western Front Army
said he believed the United States would intervene on behalf of Iraq
if Iraq were disabled in its war against Iran.
    ''American navies are near our border. And so, after defeating Iraq,
we will fight the United States,'' said Colonel Hassar Attarian. He
did not elaborate.
    
ap-ny-12-15 0544EST
**********

a044  0338  15 Dec 80
PM-Hostages,380
URGENT
Bani-Sadr Say U.S. Delays Hostages' Return
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian President Abolhassan Bani-Sadr today
blamed the United States for the delay in freeing the 52 American
hostages and said Washington must be prepared to return every penny of
Iranian wealth before the standoff can be resolved.
    ''The Majlis (Parliament) has asked for the return of our money and
if there is any obstacle it is in the answer that America gives,''
Bani-Sadr told a news conference for foreign reporters in Tehran.
''The principle reason for the delay lies in the hands of those who
hold real power in the United States.''
    He did not elaborate, but said any U.S. decision to withhold a
portion of Iranian assets ''clearly will not lead to a solution.''
    Bani-Sadr, who is not directly involved in the hostage negotiations,
was commenting on the delay in Iran's response to the latest U.S.
clarification of the four conditions proposed for release of the 52
hostages, held now for more than 13 months. He said the fault for the
delay rests with the United States for failing to state in clear
terms its acceptance of the demands adopted Nov. 2 by the Parliament.
    ''Of course, I am not speaking only of the money that was stolen by
the Shah and his relatives. I am speaking also of the money that
belongs to the Iranian government and is in the U.S. banks or the
banks that are under U.S. control.''
    Iran has demanded the return of the wealth of the late Shah Mohammad
Reza Pahlavi and his immediate family, withdrawal of pending U.S.
lawsuits against Iran, release of more than $8 billion in Iranian
assets frozen in U.S. banks and a U.S. pledge of non-interference in
Iranian affairs.
    Last week, Executive Affairs Minister Behzad Nabavi, chief of the
government commission studying the hostage issue, publicly rejected
the U.S. position that the U.S. courts must decide who is entitled to
the shah's holdings in the United States.
    On Sunday, Bani-Sadr claimed that President Carter lost his
motivation to win the release of the hostages after he lost his
re-election bid, in an interview broadcast on the CBS-TV program ''60
Minutes.''
    Ahmad Azizi, chief spokesman on the hostage issue for Iranian Prime
Minister Mohammad Ali Rajai, denied a Kuwaiti newspaper report that
Syrian President Hafez Assad had personally intervened in the hostage
negotiations and arranged a Christmastime release.
    
ap-ny-12-15 0638EST
**********

a069  0634  15 Dec 80
PM-OPEC, Sub, a034,100
Eds: Subs pvs graf 3 with 3 new grafs, Iranians place minister's
picture in chair. Picks up 4th graf pvs.
    BALI: as possible.''
    In a quiet protest, Iran's delegation placed a large black-and-white
photograph of Iranian Oil Minister Mohammed Jawad Bequir Tunguyen,
who has been taken prisoner in the war, in the seat he would have
occupied.
    Asked about the picture, Iraqi Oil Minister Tayeh Abdul Karim told a
reporter, ''We think it would be more appropriate to expose the
pictures of the victims of the Iranian regime.''
    Suharto said he hoped the OPEC meeting ''could produce fresh wind
for mutual understanding, fraternal relations and close harmony
amongst its members.''
    The delegates: 4th graf pvs.
    
ap-ny-12-15 0935EST
**********

a070  0636  15 Dec 80
PM-OPEC, Sub, a034,70
Eds: Subs pvs grafs 8-9 with 2 new grafs, editing changes to conform.
Picks up 10th graf pvs.
BALI: am optimistic.''
    OPEC protocol experts took the unusual step of separating Iran and
Iraq, whose delegates traditionally were seated side-by-side in the
alphabetic arrangement of past meetings. The Indonesian delegation was
sitting between them.
    Iran was expected to use the meeting to repeat its demand for the
return of its oil minister, who was captured by Iraqi troops in late
October near the Iranian oil refinery center of Abadan.
    Iraq claims: 10th graf pvs.
    
ap-ny-12-15 0937EST
**********

a071  0644  15 Dec 80
PM-War Rdp,370
Persian Gulf War Continues Despite OPEC Cease-Fire Appeal
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran and Iraq ignored a cease-fire appeal
from the world oil cartel today and pressed their war into its 85th
day with paratroop battles for Iran's snow-covered Western highlands
and gunfights in rain-drenched Khuzistan.
    Both sides reported artillery, ground and helicopter gunship attacks
around Abadan, Ahvaz, Dezful and Susangerd, the four main cities of
Iran's southwestern Khuzistan oil province.
    War communiques also reported hand-to-hand combat between Iranian
and Iraqi paratroopers in the foothills of the Zagros mountains in
western Iran.
    Iran claimed 122 enemy ''infidels'' were killed at the two major war
theaters on both ends of the 300-mile battlefront. It said seven
Iranian ''soldiers of Islam'' died. Iraq claimed 96 Iranians and 14
Iraqis killed in 24 hours of combat.
    Iranian President Abolhassan Bani-Sadr claimed Sunday that Iranian
forces have halted the Iraqi advance into Iran and were preparing a
counter-offensive. He repeated Iran's refusal to consider peace until
all Iraqi troops are off Iranian soil.
    Iran also claimed its forces have destroyed 2,607 Iraqi tanks and
armored personnel carriers and 205 jet fighters since the war began
Sept. 22. The figures could not be independently confirmed. They would
represent the loss of more than half of Iraq's armor and two-thirds
of its air force, according to Western estimates, but both nations are
believed to be sharply exaggerating their claims of inflicted
casualties and damages.
    In Bali, Indonesian President Suharto opened a conference of the
Organization of Petroleum Exporting Countries with a plea to Iraq and
Iran, both OPEC members, to seek a truce.
    ''I would like to make an honest appeal here from Bali to our
beloved brothers who are now in dispute, Iran and Iraq, to seek the
best conceivable solution to their conflict as soon as possible,''
Suharto said.
    Iran wants the OPEC conference to discuss the status of its oil
minister, Mohammad Javad Baquir Tonguyan, who has been held in Iraq
since his capture by Iraqi forces Oct. 31 near Iran's besieged oil
refining city of Abadan.
    Iraq rejects OPEC intervention in the Tonguyan case on grounds he is
a prisoner of war to be held for the duration of the conflict.
    
ap-ny-12-15 0945EST
**********

n999  0823  15 Dec 80
. . .
ixx nypt
a018
r i czczvtryr
BC-MILITARY
By DREW MIDDLETON
c. 1980 N.Y. Times News Service
    NEW YORK - Soviet arms deliveries to third world countries rose to a
record high of $6.6 billion in 1979. The expectation is that
transfers of arms to Syria under a treaty signed this fall will keep
the figure close to its present high level.
    A Central Intelligence Agency study prepared by the National Foreign
Assessment Center also reports that orders from a number of Arab
countries last year pushed Soviet sales of military equipment to the
third world from $2.5 billion in 1978 to $8.4 billion in 1979.
    The attraction of Soviet arms sales evidently has been increased by
Moscow's willingness to include more sophisticated weapons in deals
with Middle East customers. MIG-25 and MIG-27 fighter-bombers, Il-76
transports, SA-9 surface-to-air missiles and T-72 tanks have been
part of recent agreements.
    The arms sales have been been accompanied by what the report terms
''a high-profile military presence.'' There are 51,000 Communist
military advisers, instructors, technical personnel and troops om
assignment in the third world and the number may be growing. Of these
roughly two-thirds are Cubans. The report noted that almost
three-quarters of the Communist commitment in personnel was in Africa
south of the Sahara, with 32,000 Cuban troops stationed in Angola and
Ethiopia.
    In 1979, the CIA estimated, the total of military technicians and
soldiers in the third world was about 50,200, with 15,875 from the
Soviet Union and Eastern Europe and 34,315 from Cuba.
    Soviet military sales have been accompanied by a continuing economic
aid program. The CIA study reported that in 1979 Moscow made $2.6
billion in economic commitment-wwang a record of $4.9 billion in
1978.
    Much of the Soviet economic aid was extended to Turkey, a member of
the North Atlantic alliance. This assistance, according to the
report, covered expansion of the Soviet-built Allaga oil refinery,
construction of a dam on the Arpacay river ''and possibly a nuclear
power plant'' under a 1975 agreement between the two countries.
    Economic aid has been accompanied by the dispatch of Russian and
other Communist technicians to third world countries. The CIA
reported that 33,000 Russians, 48,000 East Europeans and about 13,000
Cuban technicians were at work in less-developed countries.
    China, which once sent large numbers of technicians to work in
African countries south of the Sahara has reduced its effort. The
number of Chinese working in the area is down by 10,000.
    Since Soviet arms aid to the third world began in 1954 in the form
of an arms delivery from Czechoslovakia to Egypt, it has reached a
total of $47 billion. East European countries have provided an
additional $4.3 billion. About 85 percent of the Soviet aid has gone
to nine key countries including, in the Middle East, Syria, Iraq,
South Yemen and, until 1972, Egypt.
    The report noted that ''in addition to exploiting the larsales, the Kremlin-
 had continued to
give overriding weight to political-military considerati in
aiding nationalist movements in Angola and elsewhere in Africa, in
plucking Ethiopia out of the Western camp (albeit at the loss of
Somalia) and in making Afghanistan ripe for takeover.''
    United States military aid in 1979 totaled $10.388 billion for all
countries. The total to third world countries was about $6 billion,
with the rest going to North Atlantic Treaty Organization members,
Japan and other developed allied countries
    The upward trend in Soviet arms transfers, the CIA report said, is
explained in part by Moscow's willingness to sell some of its most
modern weapons to its customers in the Middle East and in part by the
need to expand hard-currency earnings that are to be found in the
oil-rich states of the region.
    The report observes that despite its military and economic
investment in the last 10 years, ''Moscow has recruited few adherents
to its ideology'' in the third world. But it estimates that the
Kremlin ''must view the returns from its program as satisfactory,
possibly even good in relation to cost.''
    ''Economic aid,'' the report continues, ''has imposed a negligible
drain on Soviet domestic resources, even considering that aid
requirements must be wedged into an already overcommited economy.''
    Military and economic aid have helped expand Soviet trade with third
world countries. New markets have been opened for Russian capital
goods and machinery, and shipments of equipment now account for half
of the Soviet Union's exports to the less-developed nations.
    Trade between the Soviet Union and the third world in 1978 was $13.4
billion, compared with $260 million in 1955.
    Russian assistance to projects in third world countries has had
important results for the Soviet economy. The intelligence agency
report says that before the invasion of Afghanistan the Soviet Union
was receiving 13 billion cubic meters of natural gas from that
country, 120,000 to 130,000 barrels of petroleum a day from the Iraqi
and Syrian oil industries, which Soviet financing had helped
establish, 2.5 million tons of bauxite from Guinea, and aluminum from
a Soviet-built plant in Turkey.
    Western military analysts, reviewing the extent of Soviet military
aid, emphasize that the net result, particularly in the Middle East,
is destabilization. Soviet arms infusions, they said, have increased
the danger of more wars among Middle East countries comparable to the
conflict between Iraq and Iran, and also, in the long term, have
increased the danger to Israel.
    
nyt-12-15-80 1123est
**********

a095  0930  15 Dec 80
PM-OPEC, 1st Ld-1st Add, a088,640
URGENT
BALI, Indonesia: Exporting Countries.
    He said there would be a broad agreement on prices, ''a loose one as
we are used to since 1979.''
    Referring to other OPEC members, he said, ''There will be many who
won't increase (their prices). . . . They will stay at the same level,
and others might go up.''
    There had been speculation the Saudis might agree to raise their
price to $32 a barrel if other prducers promise not to raise their
prices still higher.
    On Sunday, Venezuelan Oil Minister Humberto Calderon Berti predicted
the 13 nations could work out a pricing formula for 1981 if Saudi
Arabia agreed to match the OPEC benchmark price of $32 per barrel.
They were unable to achieve a unified pricing policy at their meeting
last September in Vienna.
    Calderon Berti said the war between OPEC members Iran and Iraq would
help dry up the world oil glut, stemming from economic recession and
conservation, that has prevented OPEC hard-liners from getting the
top dollar prices they sought for their oil.
    ''We are sure we are going to have a deficit in the first quarter of
next year,'' Calderon Berti said. ''In my opinion we will have to
restore equilibrium in supply and demand.''
    He said oil consumption this year by non-communist countries was
about 25 percent less than in 1979. But he said 1981 consumption
should return to 1979 levels.
    Calderon Berti said quarterly price increases of 2 to 3 percent in
real terms next year to cover inflation might be possible if there was
unified pricing.
    ''If they (Saudi Arabia) move to $32, we would be happy to apply the
formula,'' he said. ''We are satisfied that we could stay with this
for the year.''
    The OPEC delegates hoped in their meeting to restore at least the
appearance of unity despite the 85-day-old war between Iran and Iraq.
    Opening the first major OPEC meeting since the Persian Gulf war
erupted Sept. 22, Indonesia's President Suharto appealed to Iran and
Iraq ''to seek the best conceivable solution to their conflict as soon
as possible.''
    In a quiet protest, Iran's delegation placed a large black-and-white
photograph of Iranian Oil Minister Mohammed Jawad Bequir Tunguyen,
who has been taken prisoner in the war, in the seat he would have
occupied.
    Asked about the picture, Iraqi Oil Minister Tayeh Abdul Karim told a
reporter, ''We think it would be more appropriate to expose the
pictures of the victims of the Iranian regime.''
    Suharto said he hoped the OPEC meeting ''could produce fresh wind
for mutual understanding, fraternal relations and close harmony
amongst its members.''
    The delegates from Iran and Iraq, confronting each other on this
idyllic palm-dotted tourist island, showed no outward response to
Suharto's plea.
    Their conflict has cut off a combined total of 3 million barrels a
day in oil exports and spurred disarray among other OPEC members who
hope to restore some sort of unified front.
    ''We must be vigilant that this OPEC meeting does not become an
arena which weakens the unity and integrity of our organization,''
Suharto said. ''We are obliged to restrain ourselves and to act
calmly.''
    OPEC protocol experts took the unusual step of separating Iran and
Iraq, whose delegates traditionally were seated side-by-side in the
alphabetic arrangement of past meetings. The Indonesian delegation was
sitting between them.
    Iran was expected to use the meeting to repeat its demand for the
return of its oil minister, who was captured by Iraqi troops in late
October near the Iranian oil refinery center of Abadan.
    Iraq claims Tunguyen is a prisoner of war and refused to hand him
over at the Bali meeting despite the urging of some OPEC members who
suggested such a step could improve the chances for peace.
    Because of the war, there was speculation the OPEC members might not
be able to get together on a new formula for oil prices.
    
ap-ny-12-15 1231EST
**********

a228  1304  15 Dec 80
AM-Hostages, Bjt,590
Bani-Sadr Says U.S. Delaying Hostage Release
Laserphoto LON10
By KATE DORIAN
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian President Abolhassan Bani-Sadr said
Monday the United States was responsible for the delay in releasing
the 52 American hostages and warned that any attempt to withhold even
a penny of Iranian assets would prolong the crisis further.
    The Iranian news agency Pars said Parliament's Internal Affairs
Committee reviewed the results of Sunday's hostage discussions between
government representatives and the Algerians who are acting as
intermediaries between Iran and the United States. It gave no further
details.
    ''The Majlis (Iranian parliament) has asked for the return of our
money and if there is any obstacle it is in the answer that America
gives,'' Bani-Sadr told a news conference for foreign reporters in
Tehran. ''The principle reason for the delay lies in the hands of
those who hold real power in the United States.''
    Bani-Sadr also warned that any decision by the United States to
withhold a portion of Iranian assets ''clearly would not lead to a
solution.''
    President Carter ordered the freezing of all Iranian assets in U.S.
banks after the Americans were captured by Iranian militant students
13 months ago.
    Iran, which also demands return of the late shah's wealth, last week
rejected a reported U.S. proposal to hold the fortune in American
banks until a U.S. court decided on who should get the money - Iran or
the shah's heirs.
    ''This point must be cleared up,'' Bani-Sadr said, ''that is whether
they (the U.S. government) will return the money to us. I do not
think our people will accept a solution which would result in the loss
of one penny of their money.''
    The Iranian president, who is not directly involved in the hostage
negotiations, added: ''Of course, I am not speaking only of the money
that was stolen by the shah and his relatives. I am speaking also of
the money that belongs to the Iranian government and is in the U.S.
banks or the banks that are under U.S. control.''
    The leftist Lebanese daily, As Safir, which has close ties with
Iran, said Sunday that the fact the Algerian delegation was still in
Iran 11 days after its arrival, was an indication some progress was
being made. The hostages spent their 408th day in captivity.
    Pars reported that the Algerian ambassador in Tehran, Abdel Karim
Gharayeb, met with Hojatoleslam Seyyed Ahmad Khomeini, son of Iranian
spiritual leader Ayatollah Ruhollah Khomeini. It said the two sides
discussed the three-month-old war between Iran and Iraq, but the
report did not say if the hostage issue was discussed during the
meeting.
    The four conditions set by the Iranian Parliament on Nov. 2 for the
release of the hostages are: return of the late Shah Mohammad)Reza
Pahlavi's wealth, the withdrawal of all lawsuits against Iran by U.S.
firms, the unfreezing of Iranian assets in U.S. banks - estimated at
$8 billion - and a pledge of non-interference in Iranian affairs.
    The U.S. government is reported to have approved the last two
conditions, while explaining the legal complications involved in
meeting the other two.
    The first U.S. response to Iran was delivered by Algerian envoys in
mid-November but the Iranian Parliament described the response as
''not clear'' and requested clarifications. The clarifications were
dispatched on Dec. 4.
    Bani-Sadr, in a television interview Sunday with the CBS network
accused Carter of losing his motivation to win release of the hostages
now that he has lost the presidential election. A spokesman for
Carter dismissed the allegation as ''ludicrous.''
    
ap-ny-12-15 1605EST
**********

n999  1312  15 Dec 80
. . .
axx cdnh
a049
s a czcuivqyv
BC-AUTOS 2ndadd
(Newhouse 003)
Heller - DETROIT X X X cans.''
    In 1977, imports took a 22.3 percent share of the new-car market and
in 1978 a 21.6 percent share. Throughout this period, domestic sales
were strong, but import sales were even stronger.
    Then came 1979 - and for American automakers, the bottom fell out.
    Upheaval in Iran and a spurt in gasoline prices sent the country
into a frenzy of small car buying.
    Fortunately for General Motors, the company had planned the
introduction of its new front-wheel-drive X-bodies for the spring of
1979. The luxury compacts were designed to compete directly with the
imports, and customers ordered them faster than they could be built.
    Besides the GM X-bodies, Chrysler had a relatively small supply of
the subcompact Omnis and Horizons, and Ford could still offer the
Pinto. But beyond those models, there was virtually nothing for the
public to consider in the small car lines - except imports.
    It's difficult to say the auto companies have only themselves to
blame. Like any industry, auto manufacturers had to build what the
public wanted to buy - or risk going out of business.
    And at the end of 1978 and in early 1979, before the Iranian
revolution, the public still wanted bigger cars.
    Ford was in a position of having to ration its V-8 engines. The Omni
and Horizon were languishing. Pinto sales were practically
non-existent. Even foreign cars were piling up. In short, there was
no market incentive for U.S. automakers to build small.
    It's ironic that the handful of small American-made cars that were
available to meet the crunch of 1979 were built to comply with the
federally required fuel economy standards which the auto companies
had so bitterly opposed.
    If not for the standards, American automakers might have had nothing
with which to compete against imports in 1979 and little on the
drawing boards for future model years.
    As it turned out, GM, Ford and Chrysler all had new fuel-efficient
cars in the planning stage for the early 1980s, the period when EPA
economy standards got tough available in 1979 provided some
buffer against imports, and may have staved off total disaster for
the industry temporarily. But the sudden reversal in the public's
taste in cars did plenty of damage.
    By the end of 1979, imports had grabbed a whopping 29.3 percent
share of the U.S. 
e market,
and Ford moved up production schedules for the subcompact Escort-Lynx
series.
    The cars were introduced this fall in what proved to be a no-win
situation. The market for Chrysler's K-cars had been largely
pre-empted by the almost identical X-bodies built by GM.
    And worse, the cars were born into an economy that couldn't afford
them.
    High sticker prices and record loanayments on a new car for many families h-
igher than their mortgage
payments. New-car sales, after a disastrous 1980 model year, slipped
to new lows.
    How the industry will ride out the crisis and what it will look like
when the crisis is over is anybody's guess.
    Chrysler is, quite obviously, the biggest question mark. The company
pinned all of its hopes for the future on the K-cars, even predicting
that the compacts would bring a profitable fourth quarter this year.
    That isn't going to happen. Nor will Chrysler have a profitable
first quarter in 1981. What happens beyond that depends largely on
the economy.
    With the prime interest rate at 20 percent and amid predictions that
it could go as high as 25 percent before it begins to fall, new-car
loans will be even harder to get and more expensive for the
foreseeable future.
    Even if Chrysler borrows to the limits of its $1.5 billion in
federal loan guarantees, it might not be enough to save the company
in a despressed economy.
    With the world ecoto a slump,
Ford's overseas profits are falling, giving rise to speculation on
just how long its foreign operations can continue to shore up
disastrous domestic sales.
    While General Motors is in no danger of collapsing as a company, the
failure of any of its competitors could lead to an antitrust action
aimed at breaking up the corporation.
    ''Right now, everybody is pinning his hopes on the Reagan
administration's economic policies,'' the Ford executive said. ''I
hope all his ideas work, and that 10 years from now we can all look
back on 1980 and say we took the worst that fate could deal us and
licked it.
    ''I hope we can do that. But I'm not betting any money on it.'' RB
END HELLER
    
nyt-12-15-80 1613est
**********

a229  1313  15 Dec 80
AM-Foreign Briefs,430
    BEIRUT, Lebanon (AP) - Former Algerian Prime Minister Ahmad Ben
Bella was quoted Monday as saying he disagreed with Iranian leader
Ayatollah Ruhollah Khomeini in many respects but that Khomeini's ideas
on relations with the West are correct.
    Ben Bella, imprisoned by his political rival in 1965 and recently
released, was quoted by the leftist daily As Safir as saying he
believes the Iran-Iraq war was a mistake and that no one benefited
from it but the Western nations.
    Ben Bella, the first Algerian prime minister after independence from
France in 1962-63, called on Arab nations to break away from the West
and rely on thesources for economic and political survival.
    ---
    BRUSSELS, Belgium (AP) - More than a third of the working women in
the European Common Market believe they have suffered from job
discrimination of some,ine-nation
community, found that much of the discrimination experienced by women
was related to being refused a job or pay raises because of pregnancy
or absences caused by children's illnesses.
    The survey said that of 30 million working women in the nine
countries, 36 percent said they were victims of discrimination, and 64
percent say they were not. The only category in which they thought
being a woman helped was in getting a job in the first place.
    ---
    MADRID (AP) - Spain's economy this year has worsened because of the
energy crisis, economists said. The government forecast a slight
improvement for 1981.
    The only favorable factor, economists said Monday, was the inflation
rate, now expected not to exceed 15 percent this year, as compared
with 15.6 in 1979. The balance of payments deficit was expected to
reach $5 billion, according to Economy and Commerce Minister Juan
Antonio Garcia Diez.
    ---
    MANILA, Philippines (AP) - Two kidnapped students were freed
unharmed, without payment of ransom, 24 days after a gang of alleged
Philippines army deserters reportedly seized them and demanded
$20,000, published reports said Monday.
    The newspaper Manila Bulletin Today said the gang released the two
young women Sunday after negotiations led by military and civilian
officials in Lanao province, 496 miles southeast of Manila.
    The gang allegedly kidnapped Marlyn Alveso, 20, and Felicidad la
Guardia, 18, from their boarding house on the campus of the Mindanao
State University in the Moslem city of Marawi Nov. 20, the newspaper
said. The kidnappers were described as members of the ''Lost
Command,'' a gang military sources described as composed of military
deserters and dismissed soldiers who have allegedly resorted to
banditry.
    
ap-ny-12-15 1614EST
**********

a237  1411  15 Dec 80
AM-OPEC, Bjt,700
Saudis Raise Base Price; Other OPEC Hikes Possible Tuesday
Laserphotos BAL1,2; NY4
By KENNETH L. WHITING
Associated Press Writer
    BALI, Indonesia (AP) - Saudi Arabia, in a bid for OPEC unity, raised
its basic oil price Monday by a reported 7 percent, to $32 a barrel,
to match the prices of other members of the world oil cartel. Further
price increases were possible Tuesday.
    Saudi Oil Minister Sheik Ahmed Zaki Yamani announced the increase on
the first day of an OPEC price-setting meeting on this tropical east
Asian isle. The 12-week-old war between two member nations, Iran and
Iraq, has made the gathering unusually tense.
    Yamani said he would not reveal the amount of the Saudi increase
until after he consulted with other OPEC members. But Venezuelan Oil
Minister Humberto Calderon Berti and industry sources said the
increase was $2 a barrel, to $32 for a 42-gallon barrel of Saudi light
crude. The price hike is retroactive to Nov. 1, the New York industry
newsletter Petroleum Intelligence Weekly reported.
    The Saudi boost was a unilateral move, and Calderon Berti and other
oil ministers said they hoped to work out a general 1981 pricing
agreement Tuesday for the entire 13-member Organization of Petroleum
Exporting Countries.
    Iraq's oil minister, Tayeh Abdul Karim, speculated the final price
structure might raise the ceiling for higher-grade oil by 8 percent,
to $40 a barrel from $37.
    The $2 Saudi increase by itself will raise U.S. gasoline prices at
the pump by an estimated 1-1 1/2 cents a gallon. Saudi Arabia produces
10.3 million barrels a day, 42 percent of OPEC's total, and supplies 8
percent of all oil consumed in the United States.
    Because it is retroactive, the increase will cost the four American
oil companies that buy most of Saudi Arabia's oil - Exxon, Texaco,
Standard Oil of California and Mobil - as much as $350 million in lost
fourth-quarter profits, said Constantine G. Fliakos, oil industry
analyst at the brokerage house of Merrill Lynch, Pierce, Fenner &
Smith in New York.
    At their last pricing meeting, three months ago in Vienna, Austria,
the oil-exporting countries were unable to agree on a uniform price
structure. Most members adopted a basic ''benchmark'' price of $32,
but the Saudis held to $30. Since then, the other members of the
cartel had been pressuring the desert kingdom to bring its benchmark
price in line with theirs.
    Karim said the majority of OPEC members supported the $32 benchmark,
although almost all wanted increases at the upper end of the price
scale. It was unclear whether they favored retaining the $32 base for
only a few weeks, or for a longer period.
    The Iraqi said Libya and Algeria were pressing for an increase in
the base price. Karim also said Iran wanted prices in the $43-$45
range, apparently meaning for high-quality oil.
    Calderon Berti said the ministers were considering several general
price proposals. The Venezuelan minister, whose country is regarded as
a moderate on prices, has spoken previously of a system for gradual
increases tied to inflation that might boost prices 2 to 3 percent per
quarter in 1981.
    Yamani was evasive about details of a possible price accord.
    He told reporters there would be a broad agreement on prices, ''a
loose one as we are used to since 1979.''
    Referring to other OPEC members, he said, ''There will be many who
won't increase (their prices).... They will stay at the same level,
and others might go up.''
    Yamani's announcement on the first day of the conference may have
been designed as a conciliatory gesture at a time when OPEC unity is
under severe strain because of the Iran-Iraq war.
    Opening the OPEC meeting Monday, Indonesian President Suharto urged
the two countries ''to seek the best conceivable solution to their
conflict as soon as possible.''
    But the Iranians appeared determined to bring the hostilities into
the OPEC meeting room. At the opening session, they placed a
photograph of their oil minister, Mohammad Jawed Tonguyen, who is a
prisoner of the Iraqis, in the seat he would have occupied here.
    Iran claims Iraq kidnapped him Oct. 31. Iraq says he was captured by
their invading forces near Iran's oil refinery in Abadan and is being
treated as a prisoner of war.
    There were unconfirmed reports Monday that OPEC security men had to
insist on disarming Iraqi bodyguards at the conference site.
    
ap-ny-12-15 1712EST
**********

n999  1516  15 Dec 80
. . .
ixx ny
a064
u i czcvyxuiv
AM-IRAN
Bani-Sadr Says Hostages' Fate Rests With 'Return of Our Revenues'
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN, Iran - President Abolhassen Bani-Sadr said Monday that the
fate of the American Embassy hostages rested on the return of Iran's
assets in the United States, frozen after the embassy's seizure and
the target of numerous lawsuits.
    However, Bani-Sadr's views appear to have little bearing on the
matter at the moment, since the hostage issue is in the hands of a
parliamentary group named by Prime Minister Mohammed Rajai and
dominated by his political enemies in the Islamic fundamentalist camp.
    Answering a question about the hostages at a press conference Monday
morning, the Iranian president said that the issue was ''in the hands
of those who hold real power in the United States'' and that the
crucial question was the ''return of our revenues.''
    ''I don't think our people will accept one penny less than what we
demand from the United States,'' Bani-Sadr said, adding:
    ''I am not referring to the money stolen by the shah.''
    The committee headed by the prime minister's chief aide, Minister of
State for Executive Affairs Behzad Nabavi has been studying the
latest American reply to the Iranian conditions for the release of
the hostages for the past 12 days.
    Nabavi and other key figures in the clergy-oriented group around the
Islamic Republican Party have been saying in recent days that the
American position was encouraging.
    The Algerian delegation which brought the American reply has been
waiting here for an answer, which a spokesman for the prime minister
has been saying for the past few days will come soon.
    
nyt-12-15-80 1816est
**********

a011  2209  15 Dec 80
AM-Hostages, 2nd Ld, a228,190
URGENT
Rajai Says Iran's Will Make ''Final Decision'' Soon
By KATE DORIAN
Associated Presss Writer
    BEIRUT, Lebanon (AP) - Iranian Prime Minister Mohammad Ali Rajai
said Tuesday that the Iranian government will announce its ''final
decision'' soon the U.S. response to Iranian terms for the release of
the 52 American hostages, Tehran Radio announced.
    Interviewed after a cabinet meeting late Monday, Rajai said the
forthcoming Iranian reply to the U.S. note delivered in Tehran nearly
two weeks ago would be ''the final one.''
    It would then be up to the U.S. administration ''to take steps
toward taking these 52 people,'' he said.
    Rajai gave no indication of what Iran's reply would say.
    He said it was ''almost in its final stages'' and would be discussed
with Ayatollah Ruhollah Khomeini, the leader of the Iranian
revolutionary regime, Tuesday or Wednesday.
    ''If His Eminence permits, we shall submit the reply soon,'' Rajai
said in the recorded interview.
    Iranian President Abolhassan Bani-Sadr said Monday that the United
States was responsible for the delay in releasing the hostages and
warned that any attempt to withhold even a penny of Iranian assets
would prolong the crisis.
    ''The Majlis, 3rd graf
    
ap-ny-12-16 0110EST
**********

a020  2306  15 Dec 80
PM-Saudi Peacemaking, Bjt,460
Use Checkbook, Oil Weapon for Mideast Peace
An AP News Analysis
By NICOLAS B. TATRO
Associated Press Writer
    BEIRUT, Lebanon (AP) - Saudi Arabia has emerged as the Middle East's
prime peacemaker, using the power of its checkbook and its oil weapon
to try to unify the Arab and Islamic nations.
    Saudi Arabia's Prince Abdullah bin Abdel Aziz was instrumental in
hauling Syria and Jordan back from the brink of war with his shuttle
diplomacy early this month.
    A Saudi source told The Associated Press that Syria and Jordan
shared a $1.5-billion Saudi bonus after defusing the threat of war
along their border.
    In the name of Islamic unity, Saudi Arabia has also been working
behind the scenes to try to find a formula to end the Persian Gulf war
between Iraq, an Arab state, and Iran, a Moslem nation dominated by
non-Arab Persians but with a large Arab minority.
    Saudi Crown Prince Fahd flew to Pakistan last week and urged the
40-nation Islamic Conference to continue trying to mediate between
''the Moslem people of Iraq and Iran.'' Iran has rebuffed the
conference's efforts, but a new attempt may be made at the Islamic
summit Jan. 24 in the Moslem holy city of Mecca, Saudi Arabia.
    ''The trip to Pakistan was also an indirect warning to Iran,'' said
one Saudi source. ''Fahd promised the Pakistanis a blank check if
necessary'' for future military cooperation.
    Reports have suggested that the Saudis look to Pakistan as a source
of military manpower to protect the oil fields of the Arabian
peninsula from the Iranians on the other side of the Persian Gulf.
    Saudi Arabia's ''Arabs-first'' policy has made its peacemaking
suspect to the Iranians. They accused the Saudis of using the four
American AWACS radar planes stationed in Saudi Arabia to spy on
Iranian troop movements and then passing the information to Iraq.
    Observers in Beirut suggest that because of this, the Saudis are
acting indirectly through Pakistan and Yasser Arafat, the chief of the
Palestine Liberation Organization. Informed sources said Arafat will
visit Saudi Arabia, then go to Iraq and Iran on another mediation
effort.
    ''Saudi Arabia is trying to show that it is the leader of the Arab
world, not Egypt, which is isolated because of its detente with
Israel,'' a Saudi source said. ''The message to the United States is
that Saudi Arabia is the party to deal with.''
    Saudi Arabia supplies the United States with about 20 per cent of
its oil imports, and the Americans and their allies have been
depending on the Saudis to make up any shortages in Western supplies
resulting from the reduction in Iraqi and Iranian exports due to the
war.
    In a clear signal to the incoming Reagan administration that the
Saudis expect to be listened to, their oil minister, Sheik Ahmed Zaki
Yamani, said his government would review its output level on a
month-by-month basis.
    
ap-ny-12-16 0206EST
**********

a048  0213  16 Dec 80
PM-OPEC,600
Cartel Raises Oil Prices $2-$4 Barrel
URGENT
By KENNETH L. WHITING
Associated Press Writer
    BALI, Indonesia (AP) - The Organization of Petroleum Exporting
Countries announced increases today of $2 to $4 a barrel in the base
prices of its member countries' crude oil and $4 in the maximum price.
    A communique issued at the end of a two-day session of the oil
cartel on this Indonesian holiday isle said Saudi Arabia's benchmark
price was being increased from $30 to $32 for a 42-gallon barrel of
crude oil, the benchmark or base price for other members would rise
from $32 to $36, and the maximum price for OPEC crudes was raised from
$37 to $41 a barrel.
    Analysts estimated that the increases would raise the price of
gasoline and heating oil about 4 cents a gallon in the United States.
    The meeting wound up with unusual speed and with a minimum of public
acrimony despite the fact that two of OPEC's founding members, Iran
and Iraq, have been at war for nearly three months.
    The only mention of the war in the final communique was an
endorsement of Indonesian President Suharto's ''sincere and honest
appeal'' to the two countries ''to seek the best possible solution
quickly to their conflict leading to a peaceful settlement of their
differences.''
    Suharto made his appeal in his speech opening the meeting Monday.
    The round of price increases was signaled Monday by Sheik Ahmed Zaki
Yamani, the Saudi Arabian oil minister, who announced that his
government was increasing its benchmark price.
    Yamani refused to give the amount of the increase, but Venezuelan
Oil Minister Humberto Calderon Berti and oil industry sources said it
was $2 a barrel, and this was confirmed by the communique today.
    The New York industry newsletter Petroleum Intelligence Weekly
reported that the Saudi increase was retroactive to Nov. 1. However,
the communique made no mention of backdating any of the increases.
    Saudi Arabia at the last OPEC pricing session three months ago in
Vienna stayed with a benchmark price of $30 a barrel while most of the
other members agreed on $32. But OPEC members charged a variety of
prices calculated according to the quality of the crude oil, its
nearness to the market and other factors.
    Saudi Arabia produces 10.3 million barrels of oil daily, 42 percent
of OPEC's total, and supplies 8 percent of all oil consumed in the
United States. Its $2-a-barrel increase alone raises the average OPEC
price from $31.79 to $32.59, a jump of 80 cents.
    Analysts at several large oil companies estimate every
dollar-a-barrel increase in the average OPEC price raises average U.S.
retail gasoline and heating oil prices about 2 cents a gallon.
    OPEC's maximum price of $37 a barrel had been charged by Libya,
Algeria and Nigeria. If they increase their maximum prices to $41 and
the prices of other members increase similarly, the average OPEC
price will rise $1.24 cents to $33.83 and raise U.S. prices another 2 1/2
cents a gallon.
    Yamani in advance of the final session predicted to reporters that
the meeting would reach a broad agreement on prices, ''a loose one as
we are used to since 1979. There will be many who won't increase. ...
They will stay at the same level, and others might go up.''
    Because the Saudi increase is retroactive to Nov. 1, it will cost
Exxon, Texaco and Standard Oil of California $75 million to $100
million apiece in fourth-quarter profits, and Mobil $37.5 million to
$50 million, oil industry stock analyst Constantine G. Fliakos said in
New York.
    Exxon, Texaco and Standard Oil are the majority partners and Mobil
the minority partner in the Arabian American Oil Co. consortium, which
gets about 7.7 million of the 10.3 million barrels Saudi Arabia
produces daily, Fliakos said.
    
ap-ny-12-16 0514EST
**********

a055  0302  16 Dec 80
PM-US-Saudi,440
US Offers to Speed Delivery of F15s to Saudis
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - The Carter administration, anxious to avert a
souring in relations, has offered to begin deliveries of F15 fighter
planes to Saudi Arabia next month, a year ahead of schedule.
    But the administration deferred a decision on the controversial bomb
racks and extra fuel tanks with which the Saudis want to equip the
planes.
    U.S. officials told The Associated Press that the offer of
speeded-up deliveries was made last month by Gen. David Jones,
chairman of the Joint Chiefs of Staff, while he was on a visit to
Saudi Arabia.
    The Saudis have not replied. They have held out for the bomb racks
and fuel tanks, which would increase the firepower and more than
double the range of the F15s.
    Israel is fearful, however, that long-range Saudi bombers could be
used against it in the event of another Mideast war.
    President Carter is deferring a decision on the supplemental
equipment and may not make one before his term ends Jan. 20.
    But Carter is willing to provide Saudi Arabia with the jets a year
ahead of schedule if the oil-rich kingdom wants them, said the
officials, who asked not to be identified.
    Carter's decision in 1978 to sell 60 F15s to Saudi Arabia was, in
itself, controversial. Defense Secretary Harold Brown assured Congress
at the time that ''Saudi Arabia has not requested nor do we intend to
sell any other systems or armaments that would increase the range or
enhance the ground attack capabilities of the F15.''
    Last June, when Saudi Arabia requested the bomb racks and fuel
tanks, the administration avoided an election-campaign problem by
postponing a decision.
    But the administration has been careful not to irritate Saudi
Arabia, which it considers a staunch friend in the troubled Persian
Gulf region and the most influential of the Arab states.
    Saudi Arabia also controls about 20 per cent of the oil imported by
the United States, has partially offset cutbacks in production in
Iran and Iraq, and has in the past boosted prices more slowly than
other members of the international oil cartel.
    Even so, the Saudis, at Monday's meeting of the the Organization of
Petroleum Exporting Countries, reportedly agreed to raise their basic
oil price 7 percent, to $32 a barrel.
    The administration also wants to lift the morale of the Saudis, who
have felt inceasingly vulnerable as a result of the fall of Shah
Mohammad Reza Pahlavi in Iran, the war between Iran and Iraq and
Soviet footholds in South Yemen and Ethiopia.
    
ap-ny-12-16 0603EST
**********

a057  0318  16 Dec 80
PM-Hostages,400
Khomeini Discusses ''Final Decision'
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Ayatollah Ruhollah Khomeini discussed Iran's
''final decision'' on the 52 U.S. hostages in a meeting with key
leaders today, the Americans' 409th day in captivity.
    A spokesman for Khomeini said the hostage issue was discussed during
a 10-minute meeting in Tehran with Iranian Prime Minister Mohammad
Ali Rajai and Executive Affairs Minister Behzad Nabavi.
    Rajai said after a cabinet meeting late Monday that he would meet
with Khomeini to go over details of Iran's ''final answer'' to the
United States regarding the four conditions proposed for release for
the hostages.
    Rajai told Tehran Radio that Iran would reveal its ''final
decision'' pending Khomeini's approval, either today or Wednesday.
    The latest U.S. position has been under review by government
authorities since it was delivered by Algerian diplomats acting as
intermediaries at Iran's request.
    The Algerians have remained in Tehran since their arrival Dec. 4 to
consult with the Iranian government and to await its final
instructions.
    Authorities concerned with the issue have generally described the
U.S. position as positive, although details have been kept secret.
    Nabavi, who heads the commission handling the hostage issue, has
indicated Iran will propose in its answer ways for the U.S. government
to implement the demands adopted Nov. 2 by the Iranian parliament.
    A new Iranian message to Washington - which would require study by
U.S. officials - would seem to preclude a resolution of the crisis
before Christmas.
    The conditions set by the Iranians are return of the wealth of the
late Shah Mohammad Reza Pahlavi and his closest relatives, unfreezing
of $8 billion in Iranian assets in U.S. banks, dropping U.S. lawsuits
against Iran and a pledge not to interfere in the country's internal
affairs.
    The stumbling block to a solution appears to surround the demands
for return of the shah's estate and Iranian assets. The U.S.
government has explained there are legal difficulties associated with
the demands, while Iran is determined to recoup all of the money.
    Iraq said today it killed 57 Iranian troops in Iran's refinery city
of Abadan and 12 others near Sar-e-Pol-e-Zahab, at the northern end
of Iraq's 300-mile invasion front.
    
ap-ny-12-16 0619EST
**********

a065  0349  16 Dec 80
PM-Hostages, 1st Ld, a057,180
Eds: Leads with 4 grafs to include Rajai saying financial guarantee
only obstacle
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - The only thing standing in the way of the
hostages' release is a U.S. guarantee to meet Iran's financial terms,
Prime Minister Mohammad Ali Rajai said today after Ayatollah Ruhollah
Khomeini approved the Iranian government's ''final reply'' on the
crisis.
    ''We only require a financial guarantee from the United States to be
given to the Algerian government, which is responsible for Iranian
interests in the United States, and then (they can) take the spies,''
Rajai told Iran's official Pars news agency.
    ''It is up to the United States to take the spies from Iran anytime
it wishes,'' Rajai said, adding the 52 Americans could be returned
''either on the feast or the birthday, whatever it likes to call it,''
an apparent reference to Christmas, the birthday of Jesus.
    ''God willing, we will soon not have a problem of hostages in Iran.
This is a dead issue for us and we gave our answer because it was
taking so much of our time.'' Khomeini met with Rajai and Executive
Affairs Minister Behzad Nabavi today, the hostages' 409th day in
captivity
    Rajai said, 3rd graf
    
ap-ny-12-16 0650EST
**********

a072  0445  16 Dec 80
PM-Washington Today, Adv 17,560
$Adv 17
For Release PMs Wed Dec 17
By DONALD M. ROTHBERG
AP Political Writer
    WASHINGTON (AP) - Given the state of the nation and the world, you
could understand Ronald Reagan getting up one morning, looking at the
newspapers and the daily briefings from the CIA and then changing his
mind about spending the next four years trying to deal with the mess.
    One of Reagan's favorite campaign lines was a reference to the
Carter administration's statement on Soviet combat troops in Cuba.
Reagan would quote the president as saying the status quo was
unacceptable and then the Republican candidate would add: ''status
quo, that's Latin for the mess we're in.''
    The line always got an approving roar from his audiences.
    Now, the day is fast approaching when the ''mess'' will be Reagan's
to deal with and he'll start learning the hard way that the status
quo isn't always easy to change.
    Most people who win the presidency go into the job with an inflated
notion of their ability to change things.
    Reagan is no different. Ask his top aides to list the qualities that
uniquely qualify their boss for the presidency and inevitably they
will mention his ability to communicate. The president-elect is a firm
believer in his power of persuasion.
    But the newspapers on Monday morning, the day the Electoral College
met to affirm what the voters did on Nov. 4, were filled with signs
of just how limited will be the power Reagan will assume on Jan. 20.
    Unrest in Poland was continuing under the ominous threat of Soviet
troops poised on the nation's borders. The United States and its West
European allies have made it clear to Moscow they would retaliate
politically and economically, though not militarily, to a Soviet
military intervention. But the final decision will be made in the
Kremlin.
    Statements from Iran were as confused as ever on the prospects for
release of the American hostages. But the latest indications were that
the 52 Americans may still be in captivity when Reagan takes office.
    The economy offered its usual depressing contradictions.
    The prime interest rate was at 20 percent and showing no sign it
would stop there. The rate of inflation was pushing close to 13
percent for 1980, while personal income was up about 8 percent for the
year, meaning most Americans were losing ground to rising prices. And
last summer's scorching weather looked certain to push food prices
higher in coming months.
    Unemployment was at 7.5 percent, but the high interest rates seem to
point to another economic slump likely to boost the jobless rate.
    Automobile sales are down and most Americans also are being
conservative about their Christmas shopping. But companies that
manufacture luxury watches priced at several thousand dollars each
reported sales were booming.
    Two highly publicized murders - Dr. Michael Halberstam in
Washington, shot when he surprised a burglar and former Beatle John
Lennon, gunned down in New York - touched off a new wave of concern
about violent crime.
    That's a small part of one day's news. The weather and the crime
rate aren't known to respond to presidential pressure. The Federal
Reserve Board and the Kremlin also are tough to persuade. And like
most other new presidents, Reagan can only wonder what totally
unpredictable event will jar his first year in office.
    End Adv PMs Wed Dec 17
    
ap-ny-12-16 0747EST
**********

a080  0552  16 Dec 80
PM-OPEC, 3rd Ld-Writethru, a0511,230
Eds: New grafs 1-7 on oil price hike
By KENNETH L. WHITING
Associated Press Writer
    BALI, Indonesia (AP) - The Organization of Petroleum Exporting
Countries announced increases today of $2 to $4 a barrel in base crude
oil prices, an action analysts said could hike gasoline and heating
oil costs in the United States up to 4 cents a gallon.
    A communique issued at the end of a two-day session of the oil
cartel also set a maximum price for OPEC crudes at $41 a barrel,
authorizing countries who want to charge the maximum a $4 increase.
    OPEC's decision established guidelines for oil pricing and it was up
to individual countries to settle on the prices they would charge
depending on how the market develops.
    The communique said Saudi Arabia's benchmark price was being
increased from $30 to $32 for a 42-gallon barrel of crude oil; the
benchmark or base price for other members would rise from $32 to $36,
and the maximum price for OPEC crudes was raised from $37 to $41 a
barrel.
    Analysts estimated the increases could raise U.S. prices of gasoline
and heating oil about 4 cents a gallon. But officials from several
countries said they were not sure yet what new prices their
governments might settle on.
    ''They just don't know what the market will bear,'' said one
conference source.
    The meeting wound up with unusual speed and with a minimum of public
acrimony despite the fact that two of OPEC's founding members, Iran
and Iraq, have been at war for nearly three months.
    The only: 5th graf
    
ap-ny-12-16 0853EST
**********

a089  0630  16 Dec 80
PM-Hostages, 2nd Ld, a065,210
Eds: New graf 1, new graf 5 on reports new U.S. clarifications.
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - The only thing blocking release of the
American hostages is a U.S. guarantee to meet Iran's financial terms,
Prime Minister Mohammad Ali Rajai said today after Ayatollah Ruhollah
Khomeini approved Iran's ''final reply'' on the hostage issue.
    ''We only require a financial guarantee from the United States to be
given to the Algerian government, which is responsible for Iranian
interests in the United States, and then (they can) take the spies,''
Rajai told Iran's official Pars news agency.
    ''It is up to the United States to takthe spies from Iran anytime
it wishes,'' Rajai said, adding the 52 Americans could be returned
''either on the feast or the birthday, whatever it likes to call it,''
an apparent reference to Christmas, the birthday of Jesus.
    ''God willing, we will soon not have a problem of hostages in Iran.
This is a dead issue for us and we gave our answer because it was
taking so much of our time.'' Khomeini met with Rajai and Executive
Affairs Minister Behzad Nabavi today, the hostages' 409th day in
captivity.
    Meanwhile, the Kuwaiti news agency quoted Algeria's foreign minister
as saying the United States provided new clarifications to Iran on
the hostage issue two days ago. The agency, quoting Foreign Minister
Mohammed Ben Yehia, did not give details of what clarifications might
have been offered.
    Rajai said: 5th graf
    
ap-ny-12-16 0931EST
**********

n999  0645  16 Dec 80
. . .
wxx
a004
r w czcczcuiv
PM-CONGRESS
By ROBERTA HORNIG
Washington Star Service
    WASHINGTON - A fatigued Congress, ending a weekend of bickering, in
the early morning hours Tuesday passed a stopgap funding resolution
that rescues most of the federal government from a technical
bankruptcy and shutdown.
    The 34-20 Senate vote shortly after 5 a.m., and the House vote a few
hours earlier, paved the way for adjournment of the lame duck 96th
Congress. The formality was to come at midday, after a few hours'
sleep for members. Only housekeeping chores remain.
    After two long days that began Saturday of what Senate Majority
Leader Robert C. Byrd called ''legislative ping pong ...
brinkmanship,'' the funding bill that emerged is a genuine
compromise, with neither the House nor the Senate getting what it
wanted.
    The House lost the nearly 17-percent, $10,000 a year pay raise it
coveted. And the senators had to give up 146 ''Christmas Tree''
amendments for pork barrel projects in their districts.
    The essential stopgap measure - the ''continuing resolution'' which
extends funding to government agencies not covered in normal
appropriations bills - is a straightforward, fairly bare-boned
measure that will keep the government in business until June 5.
    The bickering between the two chambers ceased when the Senate
decided to accept a third version of the resolution that the House
had sent it Monday.
    Much of the nearly four-hour debate in the Senate early Tuesday
dwelt on the necessity of Congress to provide money for critical
elements of the federal government so it would not have to close
down, as technically it would have if Congress hadn't acted.
    The bill's floor manager, Sen. William Proxmire, D-Wis., argued that
without a final vote elderly Americans would not be able to collect
Social Security checks Tuesday, that crucial federal law enforcement
agencies would not be able to work and that the State Department
would not be able to do business with foreign governments.
    But Republicans fought off the notion of impending disaster in
Washington. Sen. John Chafee, R-R.I., called such talk ''hogwash.''
    Senate Minority Leader Ted Stevens of Alaska echoed the view,
saying, ''You can make as many horns on goblins as like. I've never
heard as much rot in my life as that the government is going to come
to a close. It's happened six times before.''
    The final version the House sent the Senate included no provision
for pay raises for either Congress or top-level federal employees.
But it included a $500-million budget cut for public-service jobs
funded by the Comprehensive Employment Training Act, a $500-million
restoration of aid for Egypt and Israel and language that would ban
the use of federal funds to attempt to stop voluntary prayer in the
public schools.
     The latest version also accepted more lenient Senate language on
abortion - the issue that has produced a number of adjournment fights
between the two congressional houses. It prevents use of federal
funds for abortions except in cases where a mother's life is
endangered or in cases where incest or rape is involved. The rape
must be reported within 72 hours.
    The Senate had two major problems to solve before approving the
measure.
    The first was keeping senators from amending the latest House
version, which would have necessitated sending it back to the House,
raising the possibility of reopening up the war between the two
chambers.
    The second was even more difficult - getting to the Senate the
needed 51 senators to make up the quorum needed to pass the bill.
    On the first attempted amendment, Byrd kept the vote going for 44
minutes, nearly three times the alloted voting time of 15 minutes.
This was because both he and Minority Leader Howard Baker had to
rouse senators at home in bed and get them to come back on the Senate
floor.
    The needed 51st senator, Sen. John Stennis, D-Miss., arrived to a
round of applause.
    Earlier, when the House ran into similar difficulties, But House
Speaker Thomas P. O'Neill Jr. found his necessary 218 House members
in his own way.
    While the lone recorded vote found only 208 congressmen present,
O'Neill, when pressed by Republicans to take a count of members
present, mysteriously counted 281.
     Even though they were technically without operating funds as of
midnight, federal agencies had told their employees to report for
work Tuesday, but to be prepared for ''an orderly shutdown'' if the
bill was not passed.
    O'Neill had difficulty with members unhappy that their pet projects
were left out. He prevailed after pleading Social Security offices
and saying ''if there's a negotiating team on the hostages (in Iran)
there is no power to negotiate at the present time. I think this is a
serious thing.''
    O'Neill had been backed up by Rep. Mary Rose Oakar, D-Ohio, who
argued that the cost of shutting down just one government agency -
the Federal Trade Commission - for 24 hours in September had cost
more than $100,000.
    Earlier, after hours of the negotiations behind closed doors, Senate
leaders had produced a skeleton bill for the House in exchange for
one the House had sent them Saturday night.
    Earlier Monday an attempted conference between the House and the
Senate broke down when House members refused to negotiate.
    The conference chairman, Sen. Warren Magnuson, D-Wash., asked, why
the House had accepted the Senate amendments Saturday, when it
accepted a Christmas tree bill in return for a pay raise.
    ''We thought we had a deal,'' one House member shot back.
    
nyt-12-16-80 0943est
**********

a099  0729  16 Dec 80
PM-Hostages, 3rd Ld, a089,210
Eds: New grafs 1-5 rephrasing, including U.S. no comment
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Prime Minister Mohammad Ali Rajai said today
Iran had drafted its ''final reply'' on the American hostages and the
only thing blocking their release was a U.S. guarantee to meet the
Iranian government's financial terms.
    Calling the hostage situation ''a dead issue for us,'' Rajai told
Iran's official Pars news agency: ''We only require a financial
guarantee from the United States to be given to the Algerian
government, which is responsible for Iranian interests in the United
States, and then (they can) take the spies.''
    In Washington, the State Department said it will have no comment
until it receives the Iranian reply from Algerian intermediaries.
    Rajai spoke to the news agency after meeting with revolutionary
leader Ayatollah Ruhollah Khomeini who approved the government's
''final reply.'' Iran's financial terms are return to Iran of the late
shah's wealth, freeing of Iranian funds held in U.S. banks and
dropping pending lawsuits against Iran in U.S. courts.
    Once the United States meets Iran's conditions, Rajai said, ''It is
up to the United States to take the spies from Iran anytime it
wishes.'' He added that the 52 Americans could be returned ''either on
the feast or the birthday, whatever it likes to call it,'' an
apparent reference to Christmas, the birthday of Jesus.
    ''God willing,: 4th graf
    
ap-ny-12-16 1030EST
**********

n999  0738  16 Dec 80
. . .
wxx nywspt
a009
r w czcczcqyv
    PM-CONGRESS
(REPEATING BY REQUEST)
By ROBERTA HORNIG
Washington Star Service
    WASHINGTON - A fatigued Congress, ending a weekend of bickering, in
the early morning hours Tuesday passed a stopgap funding resolution
that rescues most of the federal government from a technical
bankruptcy and shutdown.
    The 34-20 Senate vote shortly after 5 a.m., and the House vote a few
hours earlier, paved the way for adjournment of the lame duck 96th
Congress. The formality was to come at midday, after a few hours'
sleep for members. Only housekeeping chores remain.
    After two long days that began Saturday of what Senate Majority
Leader Robert C. Byrd called ''legislative ping pong ...
brinkmanship,'' the funding bill that emerged is a genuine
compromise, with neither the House nor the Senate getting what it
wanted.
    The House lost the nearly 17-percent, $10,000 a year pay raise it
coveted. And the senators had to give up 146 ''Christmas Tree''
amendments for pork barrel projects in their districts.
    The essential stopgap measure - the ''continuing resolution'' which
extends funding to government agencies not covered in normal
appropriations bills - is a straightforward, fairly bare-boned
measure that will keep the government in business until June 5.
    The bickering between the two chambers ceased when the Senate
decided to accept a third version of the resolution that the House
had sent it Monday.
    Much of the nearly four-hour debate in the Senate early Tuesday
dwelt on the necessity of Congress to provide money for critical
elements of the federal government so it would not have to close
down, as technically it would have if Congress hadn't acted.
    The bill's floor manager, Sen. William Proxmire, D-Wis., argued that
without a final vote elderly Americans would not be able to collect
Social Security checks Tuesday, that crucial federal law enforcement
agencies would not be able to work and that the State Department
would not be able to do business with foreign governments.
    But Republicans fought off the notion of impending disaster in
Washington. Sen. John Chafee, R-R.I., called such talk ''hogwash.''
    Senate Minority Leader Ted Stevens of Alaska echoed the view,
saying, ''You can make as many horns on goblins as like. I've never
heard as much rot in my life as that the government is going to come
to a close. It's happened six times before.''
    The final version the House sent the Senate included no provision
for pay raises for either Congress or top-level federal employees.
But it included a $500-million budget cut for public-service jobs
funded by the Comprehensive Employment Training Act, a $500-million
restoration of aid for Egypt and Israel and language that would ban
the use of federal funds to attempt to stop voluntary prayer in the
public schools.
     The latest version also accepted more lenient Senate language on
abortion - the issue that has produced a number of adjournment fights
between the two congressional houses. It prevents use of federal
funds for abortions except in cases where a mother's life is
endangered or in cases where incest or rape is involved. The rape
must be reported within 72 hours.
    The Senate had two major problems to solve before approving the
measure.
    The first was keeping senators from amending the latest House
version, which would have necessitated sending it back to the House,
raising the possibility of reopening up the war between the two
chambers.
    The second was even more difficult - getting to the Senate the
needed 51 senators to make up the quorum needed to pass the bill.
    On the first attempted amendment, Byrd kept the vote going for 44
minutes, nearly three times the alloted voting time of 15 minutes.
This was because both he and Minority Leader Howard Baker had to
rouse senators at home in bed and get them to come back on the Senate
floor.
    The needed 51st senator, Sen. John Stennis, D-Miss., arrived to a
round of applause.
    Earlier, when the House ran into similar difficulties, But House
Speaker Thomas P. O'Neill Jr. found his necessary 218 House members
in his own way.
    While the lone recorded vote found only 208 congressmen present,
O'Neill, when pressed by Republicans to take a count of members
present, mysteriously counted 281.
     Even though they were technically without operating funds as of
midnight, federal agencies had told their employees to report for
work Tuesday, but to be prepared for ''an orderly shutdown'' if the
bill was not passed.
    O'Neill had difficulty with members unhappy that their pet projects
were left out. He prevailed after pleading Social Security offices
and saying ''if there's a negotiating team on the hostages (in Iran)
there is no power to negotiate at the present time. I think this is a
serious thing.''
    O'Neill had been backed up by Rep. Mary Rose Oakar, D-Ohio, who
argued that the cost of shutting down just one government agency -
the Federal Trade Commission - for 24 hours in September had cost
more than $100,000.
    Earlier, after hours of the negotiations behind closed doors, Senate
leaders had produced a skeleton bill for the House in exchange for
one the House had sent them Saturday night.
    Earlier Monday an attempted conference between the House and the
Senate broke down when House members refused to negotiate.
    The conference chairman, Sen. Warren Magnuson, D-Wash., asked, why
the House had accepted the Senate amendments Saturday, when it
accepted a Christmas tree bill in return for a pay raise.
    ''We thought we had a deal,'' one House member shot back.
    
nyt-12-16-80 1036est
**********

a112  0838  16 Dec 80
PM-Hostages, 4th Ld, a099,250
Eds: New graf 1 rephrasing, new grafs 3-7 U.S. response
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Prime Minister Mohammad Ali Rajai said today
Iran had drafted its ''final reply'' on the American hostages and the
only thing needed for their release was a U.S. guarantee to meet the
Iranian government's financial terms.
    Calling the hostage situation ''a dead issue for us,'' Rajai told
Iran's official Pars news agency: ''We only require a financial
guarantee from the United States to be given to the Algerian
government, which is responsible for Iranian interests in the United
States, and then (they can) take the spies.''
    Initial reaction in Washington to Rajai's remarks was cautious.
Officials said privately it was not clear what Iran means by a
''financial guarantee.''
    The Iranian response was expected within two days. ''Obviously,
we'll have to wait and see what's in it. It could contain many
conditions or views that we find difficult,'' said one official who
asked not to be named.
    On the issue of return of the late shah's wealth, there is a wide
discrepancy between the $32 billion that Iran claims Shah Mohammad
Reza Pahlavi and his family took out of Iran and the less than $200
million that a family spokesman said in September was removed.
    Within the U.S. government, there is doubt the Pahlavis have even
$200 million left in banks here.
    'I treat this kind of report with great skepticism,'' said an
official about Rajai's remarks in Tehran. ''But we are entering a new
phase. The response will be the first full and complete one from
Iran.''
    Rajai spoke: 4th graf
    
ap-ny-12-16 1140EST
**********

a119  0912  16 Dec 80
PM-US-Hostages,360
US Cautious on Latest Iranian Comments
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - Carter administration officials reacted cautiously
today to a report from Iran that the United States need provide only
''a financial guarantee'' to gain release of the American hostages.
    They said they did not know what the guarantee might entail or
whether Iran would impose other conditions.
    Iran has insisted, for instance, that the late Shah Mohammad Reza
Pahlavi and his family fled the country last year with $32 billion in
assets.
    A family spokesman in September put the total at less than $200
million. In fact, there is doubt within the administration that even
that much remains in American banks.
    If Iran's call for a guarantee is based on $32 billion, it could
pose a big problem.
    Also, officials did not know if the guarantee was supposed to cover
Iranian assets frozen by President Carter after the hostages were
taken in November 1979.
    Estimates have varied from $8 billion to $12 billion.
    ''Obviously, we'll have to wait and see what's in the response,''
said a U.S. official who has been involved in the protracted
negotiations over the hostages. ''It could contain many conditions and
views we would find difficult.''
    The official, who did not want his name disclosed, told The
Associated Press: ''I treat this kind of report with great
skepticism.''
    At the same time, he said, the negotiations could be gathering
momentum since this would be the ''first full and complete response''
from Iran since the Majlis announced its four demands on Nov. 2.
    These were return of the shah's wealth, unblocking of Iran's assets,
cancellation of all American financial claims against Iran and a
promise not to interfere in Iran's internal affairs.
    President Carter made a public pledge of non-intervention in July.
He and Secretary of State Edmund S. Muskie repeated the promise
several times since.
    The three financial conditions are considered more difficult to
satisfy. The administration is preparing legislation to have an
international claims court handle suits filed by Americans against
Iran. But there are legal and technical restraints on how far Carter
can go to meet Iran's terms.
    
ap-ny-12-16 1211EST
**********

a202  0957  16 Dec 80
PM-US-Hostages, Insert, a119,50
WASHINGTON Insert after 2nd graf: Inserts new grafs 3-4 with Jody
Powell comment
    White House press secretary Jody Powell cautioned against ''any sort
of very optimistic interpretation'' of recent public statements from
Iran.
    ''I just think it would be particularly unfortunate at this time of
the year to inject a degree of optimism into this process when you
just don't have the substance on which to base it, '' Powell said.
    Iran has: 3rd graf
    
ap-ny-12-16 1258EST
**********

n999  1217  16 Dec 80
. . .
ixx ny
a038
u i czczyvryr
AM-OPEC
OPEC Members Agree on Moderately Higher, Flexible Price Structure
By PAMELA G. HOLLIE
c. 1980 N.Y. Times News Service
    BALI, Indonesia - The Organization of Petroleum Exporting Countries
oil ministers came to a price agreement Monday night so flexible that
the troubled organization could claim that both moderates and hawks
were satisfied. The ''loose agreement'' on a range of prices from $32
to $41 a barrel, essentially amounted to an endorsement of free
pricing, since there has been little demand for oil at levels above
$40 a barrel.
    But, with the agreement, OPEC ministers could claim that the
13-member organization - despite a war between two of its founding
members, Iraq and Iran, and dissention among those who supported a
price freeze at $32 and those who supported a healthy increase above
$40 a barrel - still operates as a cooperative body. And, for a few
hours Tuesday morning, the oil ministers had a unified price when
Saudi Arabia raised its base price 6.5 percent from $30 to $32 to
join the other OPEC members. Saudi Arabia's price increase is
retroactive to Nov. 1. The new OPEC price structure can go into
effect immediately.
    This is the first flexible floor pricing plan accepted by OPEC
members. The three-level price agreement sets a range for base prices
- the official price of market crude at $32 a barrel and a top price
of $36 a barrel. The $36 a barrel price will probably become the new
floor for those countries which are selling crude at $37 a barrel,
the $32 floor plus the OPEC accepted $5 differential.
    The agreement keeps the hawks within OPEC's approved pricing
structure. It is believed that if spot-market prices were to rise
during the oil shortfall anticipated in the first quarter of 1981,
that the hawks would start imposing unilateral price increases to
test the market. Even with a ceiling of $41, the new $36 floor plus a
$5 differential, Abdussalam M. Zagaar, secretary of oil for Libya, a
hawk, indicated that it was not enough.
    Moderate members led by Saudi Arabia had argued for moderation in
prices and a freeze in the base price at $32 a barrel. The $36 level
is seen as a voncession to the hawks, especially Iran, since most of
the more moderate
    embers would have been happy with a $35 top on the basic price. ''I
believe most of the countries will go up to $35,'' said Humberto
Calderon Berti, oil minister of Venezuela. Such an increase would be
in line with his prediction that prices would rise 10 percent or $3
at this round of talks.
    The price agreement came rapidly after Saudi Arabia announced its
increase. There was less wrangling over price than over the agenda.
The majority of the opening day's meetings were devoted to discussion
of Iran's demand that the conference include Iran's grievence with
Iraq over the capture of the Iranian oil minister on the agenda. Iran
and Iraq were allowed a statement at the conclusion of the meeting
under ''other business.'' And, Iran's deputy oil minister, Hassan
Sadat, proposed that a committee of ministers visit Baghdad to report
on the health conditions of Iran's oil minister who was reportedly
injured at the time of his capture in November, or barring that an
Iranian delegation be sent or that arrangements be made so that he
could be swapped with Iran's Oil Minister Mohammed Tondgoyan.
    Dtension, and a reported scuffle between Iran and Iraq,
who were separated by the Indonesian delegation in the alphabetical
seating arrangement, the ministers who emerged from the seclusion of
the heavily guarded Pertamina Cottages, a seaside resort owned by
Indonesia's state oil company, claimed that unity was achieved. ''We
proved the OPEC is united,'' said Calderon. ''Solidarity is very
important to us.''
    
nyt-12-16-80 1504est
**********

a232  1327  16 Dec 80
AM-Hostages, Bjt,780
Rajai Says U.S. 'Guarantee' All That's Needed
Laserphotos TEH1,2
By NICOLAS B. TATRO
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran's prime minister, in what might prove a
step toward ending the hostage crisis, said Tuesday the 52 captive
Americans could be freed by Christmas if the United States gives a
''guarantee'' on Iran's financial demands.
    Once the guarantee is obtained, the United States can ''take the
spies from Iran anytime it wishes,'' the Iranian news agency Pars
quoted Prime Minister Mohammad Ali Rajai as saying in an interview.
    Rajai commented after he obtained supreme leader Ayatollah Ruhollah
Khomeini's approval for Iran's ''final answer'' to the United States
in current negotiations over the hostages.
    Rajai did not specify just what Iran wants guaranteed, and in what
way. But his statement seemed to rule out what some Iranian officials
have insisted on previously - that the United States actually fulfill
all four of Iran's conditions before the hostages are released.
    U.S. officials have said two of Iran's demands - for the late shah's
wealth and for elimination of court claims against Iran - would be
difficult to meet. The best the United States could do might be to
offer Iran assurances that it will do what it can to help in these
matters.
    Officials in Washington reacted cautiously Tuesday to the latest
statements from Tehran, noting that Iran's ''final answer,'' not yet
transmitted to the United States, might contain some other difficult
conditions.
    White House press secretary Jody Powell warned against ''any sort of
very optimistic interpretation.''
    But one U.S. official involved in the negotiations said the process
might be accelerating, since the message from Iran would be the
''first full and complete'' Iranian response in the Algerian-mediated
negotiations, which began after Iran's Parliament set the four
conditions Nov. 2.
    After a 10-minute meeting with Khomeini, Rajai said, ''We only
require a financial guarantee from the United States to be given to
the Algerian government, which is responsible for Iranian interests in
the United States, and then (they can) take the spies,'' Pars
reported. The Iranians describe the captive diplomats and soldiers as
spies.
    ''It is up to the United States to take the spies from Iran anytime
it wishes'' after agreement is reached, he said, adding that the
captive Americans could be returned ''either on the feast or the
birthday, whatever it likes to call it.'' He apparently was referring
to Christmas, birthday of Christ.
    ''God willing, we will soon not have a problem of hostages in
Iran,'' Rajai was quoted as saying.
    Another optimistic report came from Bali, Indonesia, where the
Organization of Petroleum Exporting Countries ended a two-day meeting.
The daily journal at the session quoted Iranian and Algerian sources
as saying the hostages would be released by year's end, perhaps on
Christmas Eve.
    That would beday in captivity.
    the upbeat tone from Tehran followed reported new clarifications to
Iran by the Carter administration. The Kuwait news agency quoted
Algerian Foreign Minister Mohammed Ben Yehia as saying the new
explanations from Washington were delivered to Tehran two days ago.
    Algerian diplomats acting as mediators have remained in Tehran since
delivering an initial U.S. response to Iran's demands Dec. 4. Their
continuing presence there was seen by some observers as a positive
sign.
    The four conditions set by Iran's Parliament were return of the
wealth of the late Shah Mohammad Reza Pahlavi to Iran, the release of
frozen Iranian assets in U.S. banks, the dropping of financial claims
against Iran in U.S. courts, and a U.S. pledge of non-interference in
Iranian affairs.
    The Iranians have estimated the wealth of Pahlavi and his immediate
relatives at as much as $32 billion, but other estimates put the
figure much lower. American officials note the U.S. government has
little legal power to force the surrender of Pahlavi assets in the
United States, but Washington might be able to help the Iranians
pinpoint the location of the assets.
    The second and third conditions are intertwined. The United States
has indicated a willingness to ''unfreeze'' an estimated $8 billion to
$12 billion in Iranian assets, but some of those are subject to
seizure by U.S. courts because of hundreds of financial claims against
the Iranian government.
    The Carter administration is preparing legislation to have an
international claims court handle suits filed by Americans against
Iran.
    Whether these kinds of actions would satisfy Rajai's demand for a
''guarantee'' remains to be seen.
    On the fourth condition, President Carter has already made a public
pledge of non-intervention.
    Iranian officials have generally described the latest U.S. position
as positive. But some have coupled such statements with warnings the
hostages will be put on trial as spies if the negotiations break
down.
    
ap-ny-12-16 1627EST
**********

a240  1517  16 Dec 80
AM-OPEC, Bjt,720
OPEC Announces Oil Price Hikes
Laserphotos BAL7,8; Laserphoto Chart nY29
By KENNETH L. WHITING
Associated Press Writer
    BALI, Indonesia (AP) - The Organization of Petroleum Exporting
Countries approved an increase in basic crude oil prices of $2 to $4
a barrel Tuesday and a U.S. Energy Department spokesman said the
action could add ''about a nickel'' a gallon to retail prices of
gasoline and heating oil in the United States.
    The Carter administration appealed to the oil-producing countries
not to impose the price increases and White House press secretary
Jody Powell said, ''We do not consider these increases to be
justified.''
    A communique issued by the 13-nation oil cartel at the end of a
two-day session announced Saudi Arabia's base price had been
increased from $30 to $32 for a 42-gallon barrel of crude; the
benchmark price for other members would rise from $32 to $36 a barrel
and the maximum price for OPEC crudes would go from $37 to $41.
    The OPEC action allowed individual countries to decide the extent
and timing of increases within the guidelines. The communique made no
mention of surcharges of up to $3 a barrel that exporting countries
normally add to official prices.
    Oil industry analysts in the United States said the action indicates
the cartel remains divided and there may be a new oil-price surge if
the war between OPEC members Iran and Iraq continues. The war keeps
about 3 million barrels a day from the two countries off the market.
    The Energy Department said OPEC's latest decisions could raise the
average price for the 24.5 million barrels the cartel produces daily
by about $3 a barrel to nearly $35.
    Saudi Arabia, which produces 42 percent of OPEC's total output,
increased its basic price from $30 to $32 for a 42-gallon barrel of
crude oil and the Saudi increase was retroactive to Nov. 1.
    Oil ministers of other member countries, including Ecuador, Gabon,
Indonesia, Kuwait, Libya and Venezuela, said their governments would
assess market conditions and announce prices later.
    Saudi Arabia's oil is cheaper than that of other OPEC countries, and
the Saudis have acted to restrain price increases demanded by other
OPEC nations. Ministers said that although they were generally
satisfied with the new price agreement, they had hoped Saudi Arabia
would raise prices by $3 a barrel.
    Sheik Ahmed Zaki Yamani, the Saudi Arabian oil minister, said before
leaving Bali at the end of the meeting that many countries would
probably not increase prices. ''They will stay at the same level and
others might go up,'' he said.
    Humberto Calderon Berti, Venezuela's oil minister, said he expected
that OPEC countries would not all raise their prices by the $4
authorized and that he expected the average price increase to be
about $3 a barrel.
    In Washington, an Energy Department spokesman who did not want to be
quoted by name, said U.S. retail prices may ''rise somewhat above a
nickel,'' if major oil producers outside of OPEC - such as Britain or
Mexico - decide to follow the cartel's lead.
    Mexico sells 528,000 barrels of oil a day to the United States and
Britain about 200,000 barrels a day.
    Ted Eck, chief economist for Standard Oil Co. (Indiana), said Saudi
Arabia's decision to maintain its 10.3 million barrel-a-day
production and to raise prices by only $2 a barrel enables the
world's largest oil exporter to hold ''a pretty effective club'' over
more hawkish OPEC members.
    World oil demand slumped following a more than 150 percent increase
in world petroleum prices since the start of 1979, and oil supplies
now are ''in reasonable balance,'' Eck said.
    ''Opportunities (for producers) to get premiums are limited,'' he
said. But a trader at one major U.S. oil company said, ''if there's
another blowup'' in the Middle East, ''who knows what will happen''
to the price of oil.
    OPEC's maximum price of $37 a barrel had been charged by Libya,
Algeria and Nigeria, which together sell the United States about 2
million barrels of oil a day. They can now go to the maximum $41.
    OPEC members charge a variety of prices that they calculate
according to the quality of the crude, its availability to the market
and other factors.
    The ministers decided to conduct their next meeting in Geneva,
Switzerland on May 25.
    
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n999  1626  16 Dec 80
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AM-IRAN
Khomeini Approves 'Final Offer' on Freeing U.S. Hostages
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN - Ayatollah Ruhollah Khomeini Tuesday approved what Iranian
officials called their ''final answer'' on conditions for the release
of the 52 American hostages.
    The ayatollah's approval - necessary for any action on major issues
- came after a parliamentary panel spent 12 days pondering the latest
American response to the four conditions for freeing the hostages set
by Iran Nov. 4.
    Suggesting that it was possible the hostages might be home for
Christmas after more than 13 months of captivity, Prime Minister
Mohammad Ali Rajai said that it would be up to the United States to
take them back at any time, including ''the feast or the birthday or
whatever they like to call it.''
    The potential breakthrough came amid mounting indications here that
the Islamic fundamentalist political forces - who have effectively
controlled the fate of the hostages - would like to be rid of the
problem.
    But hopes have been raised only to be dashed before, and the terms
of the Iranian proposal - and whether they would be acceptable to the
American government - were not known.
    It appeared, however, that the crux of the issue was still the
complex financial matters that have been a sticking point thus far:
Iranian assets in the United States, frozen by President Carter after
the seizure of the U.S. Embassy and now the subject of numerous
lawsuits, and the wealth of the late Shah Mohammad Reza Pahlavi.
    ''We have only asked for financial guarantees from the United States
that are to be assured through the Algerian government, which is
protecting our interests,'' Rajai said after a meeting with the
ayatollah. ''Then they can take the hostages.''
    Appearing to indicate that he was eager to wash his hands of the
affair, the prime minister said, ''We no longer have any difficulty
of a political nature or that requires time.''
    Referring to the hostage issue as a ''waste of time,'' Rajai told
reporters, ''As we have repeatedly said, the issue has become a dead
subject for us, so we have prepared final answers that will be
conveyed to the United States government through the representative
of the Algerian government who has come to Iran for this purpose.''
    Rajai and his chief aid on the hostage issue, Minister of State for
Executive Affairs Behzad Nabavi, received approval for their proposal
in a brief meeting at Khomeini's residence Tuesday morning.
    Emerging from the meeting, Rajai said the ayatollah had given
permission to prepare a reply to the American position paper and
expressed the hope that in the near future there would no longer be a
hostage problem. He added that the reply would include terms
acceptable to all officials and people of Iran, according to Pars,
the state news agency.
    The ayatollah's approval came after the prime minister had met with
his Cabinet until 2 a.m. ''The answer for the hostages is going
through the last stages,'' Rajai told the state radio after the
meeting.
     Khomeini, always the final arbiter in revolutionary Iran, has
played a key role at each juncture of the lengthy hostage drama. The
difference this time is that he was presented with a single proposal,
rather than with conflicting views from the squabbling factions in
this new nation.
    The perception has been growing here that the continued hostage
crisis is a drawback to winning sympathy for Iran in the war with
Iraq and is causing difficulties in getting needed food, spare parts
and equipment, particularly from Europe.
    However, it is generally believed here that, having made the
hostages a major issue for the past year, the religious
traditionalists will find it difficult to release them without
devising a method of saving face.
    Sources here also say that there is a division within the ruling
circles over the financial demands.
    The group around President Abholhassan Bani-Sadr believes that the
most important question is the recovery of the Iranian assets in the
United States - estimated at between $8 billion and $14 billion -
vital to the war effort and the flagging economy.
    The religious fundamentalists, however, are said to insist that the
major issue is to get the United States to agree that Iran has the
right to the late shah's wealth. This is seen as a largely symbolic
gesture - a final renunciation of American ties to the Pahlavis -
rather than a practical matter since much of the money is presumed
impenetrably hidden in Swiss bank accounts.
    While it is not known what the Iranian proposal said about these
fiscal matters, the term ''guarantees'' appeared to be an addition to
the lexicon.
    One possibility is that the ''guarantees'' refer to a plan long
advocated by the director of the Central Bank here, Ali Reza Nobari,
under which an escrow account would be established in Algeria by the
United States, pending settlement of the various cases.
    The four conditions set by Parliament for the release of the
hostages are that the United States must promise not to interfere in
Iran's internal affairs, that it should abrogate all American law
suits against Iran, release impounded Iranian assets and return the
wealth of the late shah.
    
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n999  1640  16 Dec 80
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BC-ARY PageOne
Editors: FYI
     The New York Times plans the following frontpage, Wednesday, Dec.
17, first edition:
TOP:
    Wash(Weisman) Reagan names Haig to State, Donovan to Labor.
    (One-col cut Haig.)
    Tehran(Kifner) Khomeini approves 'final' terms for release of
hostages.
    (2-col cut over Poland story.)
    Denpasar(Hollie) OPEC agrees to allow oil price to rise to $41 a
barrel.
FOLD:
    Wash(Rosenbaum) Alexander M. Haig, Man in the News.
    Gdansk, Poland(Darnton) Church, unions and government call for
national reconciliation.
BOTTOM:
    WAsh(Reinhold) Census figures confirm population shift to the South
and West.
    (3-col cut with Westway story.)
    New York(Times) Carey says Westway project is alive despite Koch
opposition.
    New York(Bennett) Prime rate jumps one point to record 21 percent.
REEFERS:
    Wash(Times) 96th Congress finally calls it quits.
    Undated(Times) Colonel Sanders dead at age 90.
    
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a258  1754  16 Dec 80
AM-War Rdp,360
UN Finalizes Plans To Remove Foreign Ships From Embattled Waterway
With AM-Hostages Bjt
By FAROUK NASSER
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran and Iraq hammered each other's positions
on the northern flank of the Persian Gulf Tuesday with long-range
artillery and helicopter gunship fire. U.N. envoys in the area
finalized plans to remove 70 foreign ships from the embattled Shatt
al-Arab waterway.
    War communiques from both sides reported grenade-throwing assaults
and bunker-to-bunker combat in marshlands in the southwestern part of
Iran's rain-soaked oil province of Khuzistan and hit-and-fly forays
by air-borne paratroopers in the snow of Iran's western highlands.
    Iraq claimed 166 Iranian deaths in 48 hours of fighting in the two
areas. Tehran communiques claimed 197 enemy ''infidels'' killed in the
same period.
    Neither side reported any change of positions along the
300-mile-battlefront of the 86-day-old war.
    At the United Nations in New York, a spokesman for Secretary-General
Kurt Waldheim said two U.N. envoys were in the Persian Gulf region
making final arrangements for evacuating the trapped vessels.
    The spokesman, Rudolf Stajduhar, did not say when the operation
would begin but said Red Cross flags would first be hoisted on all of
the vessels.
    Most of the ships, which fly the flags of 23 nations, are trapped in
a 10-mile strip on the eastern coast of the waterway between Iran's
besieged oil refining city of Abadan and the commercial port of
Khorramshahr, most of which has been conquered by the Iraqis.
    Several vessels suffered heavy damage from air raids and shellfire
in the fighting that preceded the capture of Khorramshahr harbor.
While some crewmen have fled by swimming to shore, most of the ships
are still manned.
    Iran and Iraq gave ''agreements in principle'' on letting the ships
sail out to U.N. special envoy Olof Palme, the former Swedish prime
minister, when he visited Baghdad and Tehran on a peace mission last
month.
    The evacuation operation might require both nations to proclaim a
temporary cease-fire limited to the 120-mile-long estuary in order to
clear it of mines, unexploded missiles or sunken ships before the
trapped vessels can sail away, according to pro-Iraqi sources in
Beirut.
    
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n999  1836  16 Dec 80
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BC-RESTON COLUMN
(Commentary)
WASHINGTON: Haig Makes It at Last
By JAMES RESTON
c. 1980 N.Y. Times News Service
    WASHINGTON - Ronald Reagan may have the right idea about how to pick
his Cabinet - slow and easy - but he makes it tough on the guys he
picks. He seems to think that the way to stay out of mischief in the
next few weeks is to stay out of Washington, and spend the year-end
holidays at home.
    Who can blame him? He wants one last look around the California
mountains and the Pacific Ocean before he has to consider the less
happy aspects of the rest of the world.
    Leave the Polish question, the hostage question in Iran, and the
economic question at home to Jimmy Carter, he says, for he'll have to
struggle with these devilish problems soon enough.
    Also, let somebody else explain the Reagan Cabinet, for every
appointment that makes somebody happy infuriates many others, and
he'll be out to lunch when they call to complain.
    But there are some problems. Reagan fiddled with his decision about
his secretary of state. Maybe George Shultz, who had been in
Washington before, would want the job but he said thanks, but no
thanks.
    Maybe Gen. Al Haig would be his man, but maybe no, since Haig was
involved with Nixon on Watergate, Kissinger on Vietnam and Cambodia.
And then, after an interminable delay, Reagan said yes.
    Haig was his choice, he said on the way to his tailor, and Haig it
was, though Haig did not appear for the announcement. Reagan does
these things in peculiar ways. Bill Simon was supposed to be his
first choice as secretary of the Treasury, but suddenly drew out or
was thrown out - nobody ever learned which or why.
    Then Walter Wriston, the head of Citibank was touted for the
Treasury, followed by reports that he was ''slipping'' because he had
some undefined ''conflict of interest,'' and finally that he was
absolutely out of the running because of some philosophical
difference with Reagan.
    All this came out of Reagan's headquarters but nobody ever explained
quite why.
    What was odd about all this is that Wriston never heard a word about
any of it from Reagan, who scarcely recognized him at a party in New
York, and Wriston hasn't heard to this day from Reagan or anybody
else in Reagan's transition team what this was all about.
    The Reagan transition has been proclaimed by some as the best there
ever was - very canny, very forehanded, very sensible in defining
Reagan's philosophy and then choosing people very carefully.
    And as usual in this city, there is a totally different view: that
the Reagan transition has been the most expensive and incoherent
transition in memory - occupying a 10-story building with people who
were vague at best about what they were supposed to be doing, and in
the name of a conservative and penny-pinching administration,
spending not only their $2-million budget, but exceeding it by at
least another million.
    President Carter has almost disappeared from the scene in Washington
these last few weeks, but in fairness, he has been working night and
day to liberate the American hostages and relieve his successor of
this agony.
    Nothing could be more untrue than the charge out of Tehran that
Carter, having lost the election, has lost interest in the plight of
the American prisoners. In fact, he has been insisting privately that
this may be the last thing he may be able to do before he goes home,
even if he has to take responsibility for a questionable compromise.
    The transfer of power from one party to another in the United States
is in this respect both admirable and exceptional.
    Despite all the vicious charges of the campaign, all the party
battles and predictions of disaster if the other candidate wins, the
vote of the majority has clearly been accepted here, and every effort
is now being made on both sides to act in the national interest.
    The officials in Tehran have put what they called their ''final
offer'' to Washington, and have said that the hostages can be
released whenever that offer is accepted.
    We do not yet know precisely what that ''offer'' is, but we do know
- or so we are told - that Carter has not merely passed it on to
Reagan for decision, but has advised the Reagan people of its
contents, and accepted personal responsibility for trying to get the
hostages home, even if he's blamed for the compromise.
    A few critical weeks have been lost while Reagan was trying to make
up his mind about selecting a secretary of state, but now that Haig
has been chosen, it will be possible, even before he is confirmed,
for him to study the intelligence reports and provide some guidance
to Reagan about how to respond to the developing crises in Poland,
the Middle East and Latin America.
    There is little doubt here that Haig will be confirmed as secretary
of state. Washington is sick of the old arguments over Watergate and
Vietnam and would welcome a moratorium on the vicious debates of the
past, including Haig's part in them.
    Reagan has diddled with this appointment to the first secretary of
his Cabinet, but the 96th Congress has finally gone away, without
many regrets here, and Haig will now have a chance to study the
problems he will have to face in the coming years.
    
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n999  1846  16 Dec 80
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AM-IRAN-U.S.
U.S. Officials Caution on Talk of Freeing Hostages
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Lacking details on Iran's latest response, the United
States cautioned Tuesday against expectations that the hostage crisis
might soon end.
    In Tehran, after conferring with Ayatollah Ruhollah Khomeini, Prime
Minister Mohammad Ali Rajai said that Iran had drafted its ''final
reply'' to the United States on freeing the 52 hostages and that they
could be released by Christmas if Washington only provided
''financial guarantees.''
    This report created considerable interest here. But both the White
House and the State Department said they had no word that the Iranian
reply had yet been turned over to the Algerian intermediaries through
whom the two countries are conducting negotiations. And they said
that the United States had no information on what Rajai meant by a
''financial guarantee.''
    Some officials said that the most encouraging aspect of the Tehran
report was that the Iranians continued to talk of resolving the
crisis, now more than 13 months old, and to work through diplomatic
channels.
    But they also cautioned that the ''guarantee'' sought by Tehran
might just be another way of demanding that the United States return
to Iran all of the more than $8 billion in frozen Iranian assets,
regardless of pending claims, and that it seize and transfer to Iran
the property of the late Shah Mohammad Reza Pahlavi. The United
States has already told Iran in its previous two responses that there
were legal problems involved in returning all these funds to Iran.
    ''The Iranians may be saying: 'Okay, add up what the assets come to
- $30 billion, let's say - and pay us off without dealing with the
courts,' '' one State Department official said. ''We can't do that,
of course.''
    Jody Powell, the White House spokesman, said he had very little to
say about the Tehran developments ''except to caution against any
sort of overly optimistic interpretation of public statements there.''
    ''We do not know the nature of, the substance of the Iranian
response,'' he said. ''We have no idea on God's earth what they
mean.''
    ''It would be very unfortunate at this time of the year to inject a
degree of optimism into this process when you just don't have the
substance upon which to base it,'' Powell said.
    The expectation here was that the Algerians would be given the
Iranian response Wednesday and would bring it to Washington by the
end of the week. The response will have to be studied to see if the
United States can comply with it, officials said.
    Most senior officials working on the hostage crisis have assumed for
some time that the Iranian authorities would like to resolve the
matter before Ronald Reagan assumes the presidency Jan. 20. But they
have also assumed that the Iranians would seek to leave the
impression that they did not compromise with the original conditions
set by the Iranian Parliament for the release of the Americans.
    Those four conditions are the issuance of a pledge not to intervene
in Iran's affairs; the freeing of the frozen assets; cancellation of
all claims against Iran and recovery of the shah's property.
    Daniel Levitt, a New York lawyer who represents 34 Iranian banks in
the litigation, said that the ''hard core'' total value of the claims
against Iran might be only $2 to $3 billion, far less than the more
than $7 billion face amount of the claims and the more than $48
billion total value of the frozen Iranian assets. He suggested that a
''natural approach'' might involve returning most of the frozen
assets to Iran while keeping a smaller amount in the United States or
a third country to provide security for a settlement of the claims.
     The United States told the Iranians, in a five-page message
delivered to the Algerians on Nov. 12, that it accepted the four
points as a basis for ending the crisis, but has legal difficulties
in meeting the last two conditions. Iran sent a list of questions
back to Washington at the end of November through the Algerians and
the additional five pages of ''clarifications'' were delivered to
Iran 11 days ago.
    
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n999  1855  16 Dec 80
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AM-OPEC 1stLd-Pickup5thgraf a038
Eds, Sub dateline and updating with expected impact of
pricing decision.
By PAMELA G. HOLLIE
c. 1980 N.Y. Times News Service
     DENPASAR, Indonesia - The oil ministers from the 13 members of the
Organization of Petroleum Exporting Countries agreed Tuesday to
permit crude oil prices to rise as high as $41 a barrel, the first
time the $40 barrier has been officially broken.
    The agreement, which permits a considerable amount of pricing
flexibility for each OPEC nation, was fashioned to satisfy both price
hawks and price moderates. It will let Saudi Arabia, which has
historically preferred to keep its prices relatively lower, to sell
its oil for $32 a barrel, a $2 increase, while other members of the
cartel will be permitted to raise their prices as much as $4 a
barrel, to $41.
    The price increase could increase gasoline and heating oil prices
paid by Americans between 5 and 7 cents a gallon, private and
government analysts calculated.
    Perhaps most significant, the pricing pact seemed to indicate that
OPEC could still function as a cooperative body, despite an increase
by $2, to $9, in the gap between the permissible low and high prices.
Doubts had been expressed that warring Iran and Iraq would be able to
sit in the same room together, much less come to any sort of
agreement.
    ''You can say this is a start'' toward unity, said the Indonesian
oil minister, Subroto.
    The cartel, seeming anxious to avoid as many controversial issues as
possible, extended the term of its secretary general, Rene G. Ortiz
until the end of June rather than choose a new president, as had been
planned earlier.
    (Reaction among consuming countries to the price decision was sharp
and immediate. ''We do not consider these increases to be justified,
particularly in the light of the good record of the United States and
the industrial world in restraining demand,'' said White House Press
Secretary Jody Powell.
    (In Paris, a spokesman for the International Energy Agency called
the newly permitted $41 price ''a bit on the high side.'' And in In
Japan, government officials said that the price increase would result
in a rise of between $3 billion and $4 billion in Japan's annual
crude oil bill, which now is $60 billion.)
    The agreement, reached at the final session on the East Asian island
of Bali, during a torrential tropical rainstorm, allows for a
reference price of $36 for those OPEC countries that wish to use it.
Saudi Arabia, which had stuck to the ''official'' OPEC base of $30,
will move up to the new official base of $32.
    Because numerous producing countries add extra charges to their oil
to reflect quality differences, some will be allowed to go beyond
$36. In particular, African countries that have been selling their
high-quality, low-sulfur crude for as much as $37, OPEC's previous
ceiling, will be permitted to increase their price to $41 under the
new agreement.
    In some cases, OPEC countries have sold crude for more than $37 a
barrel by adding surcharges to cover such factors as exploration or
supply guarantees. These have pushed the price as high as $40 a
barrel. The agreement here did not appear to specify the status of
these surcharges.
    So far, no countries have officially stated the amount of increase
they plan. Over the next few weeks, they are expected to announce
their intentions individually, perhaps retroactively. ESS IN SPOT MARKETS, WHER-
E SMALL QUANTITIES OF CRUDE ARE TRADED
UNOFFICIALLY, APPEARS TO ARGUE AGAINST BIG INCREASES. In some cases,
spot crude oil prices have slipped below $39 a barrel for some
African crudes, a drop of nearly $5 a barrel since mid-November.
    But, if the market tightens in the first quarter of next year, as
some observers predict, an increase at least as high as $41 on the
part of higher-priced producers is possible. Abdussalam M. Zagaar,
secretary of oil for Libya, a hawk, Monday indicated a $41 price
might not be high enough.
    Moderate members ... picking up 5thgraf previous.
    
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n999  2056  16 Dec 80
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BC-OPEC-REACT 2takes
(ECONOMIC ANALYSIS)
By DOUGLAS MARTIN
c. 1980 N.Y. Times News Service
    NEW YORK - The price increase by the Organization of Petroleum
Exporting Countries could cost American consumers as much as 7 cents
a gallon at the gasoline pump by the end of February, industry
analysts and oil company experts calculated Tuesday.
    An increase of that magnitude assumes that all the member nations,
apart from Saudi Arabia, will take advantage of the full $4 price
rise OPEC agreed to permit. If they only increase prices by $3 a
barrel, a pump price increase of 5 cents is likely.
    Before the meeting, there had been widespread doubt that the cartel
could agree on anything, or even conduct an orderly meeting. Aside
from the war between Iran and Iraq, Saudi Arabia and Libya recently
broke diplomatic relations. Several recent routine meetings of the
group were canceled, and observers were saying the cartel had entered
a state of suspended animation.
    The size of OPEC's move was startling, particularly in the face of
prevailing economic conditions. Worldwide oil demand is running below
1979 levels, supplies are relatively abundant, and scattered
predictions of a petroleum surplus by year-end are beginning to be
heard. Moreover, the spot market prices for crude oil - which are
closely watched by OPEC in setting official prices - have plunged as
much as $5 a barrel since last month.
    In the face of these price-depressing factors, analysts explained
that the increase demonstrates the stranglehold that producing
countries continue to hold over pricing levels, as well as the
pressures working to increase prices. In addition, they suggested,
the wide latitude permitted by OPEC was a deliberate move to blunt
tensions within the cartel.
    Viewed in this context, ''it's not such a horrendous number,'' said
Theodore R. Eck, chief economist for the Standard Oil Co. (Indiana).
    Among other things, Eck cited such price pressures as nagging fears
about the daily world shortfall of 1 million to 1.5 million barrels a
day arising from the Iran-Iraq war, a desire to keep up with
inflation and the symbolic importance of reaching a common agreement.
Producing countries appeared to reject Western conservation efforts
as reason for restraint.
    ''Prices will continue to go up, with ever-more-miserable
consequences for the importing countries,'' said Walter J. Levy, an
oil economist. ''The point is, when is enough enough?''
    ''The fragility of today's worldwide economic conditions makes this
price rise particularly damaging,'' declared Energy Secretary Charles
W. Duncan Jr.
    The producers' cartel agreed to increase price ceilings by as much
as $4 a barrel. Previously, the reference price for a barrel of OPEC
oil was $32; the new level is $36. However, because of quality
differentials, some African oil has been selling at official prices
of as much as $37. The price for that oil would thus pierce the
$40-a-barrel barrier for the first time, if African producing
countries take full advantage of the price increase the cartel has
decided to allow.
    But countries are not required to move their prices at all, and they
might not be able to make increases stick in today's softened market
in any case. Though OPEC has approved price increases of as much as
$4 a barrel if members deem them wise and enforcable, it has not
mandated any specific action.
    Only optimists, however, would dismiss upward price pressures.
African countries, in particular, have been aggressive in attaching
various sorts of extra charges to the crude oil they sell. In just
the last week, both Nigeria and Algeria announced separate unilateral
moves to increase prices by between $2 and $3 in surcharges over
official levels for much of their production.
    Although the cartel formally ratified a $41 maximum price, it was
not immediately clear if that ceiling applied to such surcharges, or
premiums, as they are often called.
    ''You attach the premiums, and you're really up there,'' said
Marshall Thomas, international editor of Petroleum Intelligence
Weekly. He predicted the effect of OPEC's move would be to make oil
markets ''more chaotic and more expensive.''
    (MORE)
    
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n999  2242  16 Dec 80
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BC-HAIG-1stadd-12-17
    x x x REGARD TO VIETNAM.
    In early 1973, he made the leap that first generated the label
''political general.'' He then wore the two stars of a major general,
and Nixon returned him to the Pentagon as vice chief of staff of the
Army.
    Automatically he received two more stars, making him a full general.
It was a rare advancement for an officer who had never commanded a
division. Gen. Haig's military command experience then was limited
to, first, a battalion and then a brigade in Vietnam.
    But the Pentagon interlude was brief. Five months after his
assignment, the swelling Watergate scandal forced the resignation of
H.R. Haldeman, Nixon's White House chief of staff, and the president
brought Gen. Haig back from the Pentagon for the job.
    He tried at first to retain his military rank. But the pressure was
too great. Three months after returning to the White House, he went
on inactive status.
    For 15 months he managed White House affairs during one of the most
tormented periods of the presidency. Many students of the institution
argue, with varying degrees of disdain or praise, that he and
Kissinger, in effect, ran the country during the critical months
until Nixon resigned in August, 1974.
    During that period, a separate scandal forced the departure of Vice
President Spiro T. Agnew, while the daily revelations of Watergate
eroded Nixon's position. Admirers of Haig, in their more enthusiastic
moments, say he kept the structure from collapsing and in the end
maneuvered Nixon into resigning.
    The critics remember the times when he refused - on presidential
instructions - to testify before Congress. They recall one of his
less-apt phrases, when he attributed the notorious 18-minute gap on
the White House tapes to an unspecified ''sinister force.'' Skeptical
journalists recall private moments when Haig, his face gray with
fatigue, either led them astray or bleakly cautioned them that some
day they would regret having contributed to the collapse of the
presidency.
    When it was over, Haig quickly returned to active military duty,
reaping from President Ford the choice command of NATO forces in
Europe. A payoff for dark deeds, the critics speculated, though the
nature of those deeds remained unspecific.
    European allies left no doubt of their bleak reception. The last
thing NATO needed, they suggested in private, was a political general.
    But by the time Gen. Haig retired June 30, 1979, the skeptics had
disappeared. By all accounts, his combination of military,
administrative and political skills had left NATO forces in the
maximum position permitted by the decisions of 15 countries.
    Some of the history behind Gen. Haig's resignation remains to be
written. He announced it in January, six months before it would take
effect, shortly after the Carter administration had decided to
withdraw support from the collapsing regime of the shah of Iran.
    Although Carter had extended Gen. Haig's tour in Europe, their
political differences had grown through 1978. There have been
reports, not confirmed officially, that the general had threatened to
resign if members of his staff were assigned, as they were, to help
find an alternative to the shah.
    Once again a civilian, Haig became president and chief operating
officer of United Technologies Corp., one of the nation's 20 largest
industrial enterprises. At the same time, he pursued the speechmaking
and other public soundings that might lead to a presidential campaign.
    With time, admirers say, it became clear that the support was
inadequate. Questions about Haig's health persisted. Early this year
he announced that he would not be a candidate.
    But ''there isn't much doubt about the kind of secretary of state he
will be,'' a close friend judges. ''He will be a strong one, a worthy
successor of George C. Marshall, but one even more assertive of
American interest.''
    Gen. Marshall was the last former military officer to be secretary
of state. But the popular wisdom in Washington is that Marshall, who
served under the late President Harry S. Truman, ran an institution
more relaxed than Haig would tolerate.
    ENDIT TREWHITT
    
nyt-12-17-80 0142est
**********

a044  0258  17 Dec 80
PM-US-Iran,360
Officials Anxious for Iranian Response, Caution Against Renewed Hopes
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - While trying not to raise any hopes, U.S.
officials are anxiously awaiting an official Iranian message that may
show the Tehran government is softening its demands for the release
of the 52 American hostages.
    Iran's prime minister said Tuesday his country would only look for a
''guarantee'' that the United States will fulfill four previously
stated demands, and the captives might be let go soon, perhaps by
Christmas.
    Jody Powell, President Carter's chief spokesman, and other U.S.
officials played down the vague but apparently conciliatory statement
of Prime Minister Mohammad Ali Rajai, although the mood at the State
Department was more upbeat than it had been.
    One U.S. official, speaking privately, said he wouldn't be surprised
if there were a ''hooker'' in Rajai's statement. But the official, a
self-described pessimist, said he now believes the hostages will be
home soon.
    Rajai's statement appeared to mean that Iran might release the
hostages before the United States fulfills all four demands, which
include a call for the return of the late Shah Mohammad Reza Pahlavi's
wealth. It was not clear whether the guarantee would require eventual
full U.S. compliance or merely a good faith effort to meet the
demands.
    The United States is still waiting for an official version of what
Rajai termed Iran's ''final reply'' in the drawn-out negotiations. The
answer will most likely come through Algeria, which has been acting
as an intermediary between Iran and the United States.
    Rajai told the official Iranian news agency, Pars, that Iran wants
to resolve the hostage crisis, now in its 410th day. He suggested that
the hostages may be home ''either on the feast or the birthday,'' an
apparent reference to Christmas.
    For the last two weeks, Iran has been considering U.S.
clarifications to the conditions set down by the Iranian Parliament on
Nov. 2 for ending the crisis.
    One reason that Rajai's statement generated interest here was that
he made it after a meeting with Iran's religious leader, Aytollah
Ruhollah Khomeini.
    
ap-ny-12-17 0559EST
**********

a065  0452  17 Dec 80
PM-War Rdp,660
URGENT
Khomeini cancels demonstrations
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian leader Ayatollah Ruhollah Khomeini
today canceled nationwide protest marches planned by clergy-oriented
hardliners against the secular moderates of President Abolhassan
Bani-Sadr.
    The 80-year-old patriarch of Iran's revolution said in a radio
address to his 36 million countrymen his cancellation orders were
issued to preserve Iran's national unity in the war against Iraq.
    Khomeini described the war situation as ''critical,'' called the
Iraqis ''enemies of Islam'' and said no divisive reactions by the
public were permissible ''even if I or my portrait are insulted.''
    This appeared to be a reference to the tearing down last week of the
portraits of Khomeini's chosen successor, Ayatollah Hossein Ali
Montazeri, from the walls of Iran's northeastern town of Mashhad.
    It was the Mashhad anti-clerical demonstrations by the moderates
that touched off the call for the protest marches on Thursday in all
cities of Iran against Bani-Sadr's supporters, who were described in
clerical leaflets as ''American stooges'' and ''fifth column agents of
the Iraqi enemy.''
    Sixty-eight members of Iran's Parliament signed a petition Tuesday
accusing Bani-Sadr of disclosing secret parliamentary discussions
about the war and calling for an investigation.
    The accusation came after a series of articles were published in the
Enqelab Islami newspaper in Tehran, run by supporters of Bani-Sadr.
    An editor of the paper said although the petition was aimed at the
president it did not mention him by name, instead accusing ''those who
disclose these issues as harming and weakening the Iranian army.''
    The deputies said the articles written about the ''confrontation of
the army with the enemy . . . and the mistakes it made . . . could
lead to the weakening of the army's morale,'' the editor said.
    The petition appeared to be the latest salvo in the continuing power
struggle between Bani-Sadr and his chief rival, Prime Minister
Mohammad Ali Rajai.
    Iran and Iraq each claimed battlefield successes today but war
communiques clearly showed the 87-day-old conflict on the northern end
of the Persian Gulf was bogged down in a winter standoff.
    Iraq claimed it repulsed a tank-led Iranian assault near the key
highway town of Susangerd in Iran's southwestern oil province of
Khuzistan and an Iranian attack in Iran's western highlands.
    The Iraqi command claimed 34 Iranian troops killed, six tanks
destroyed and one helicopter gunship shot down. It conceded five Iraqi
deaths.
    Iran's official Pars news agency claimed 52 Iraqi troops killed in
the western region of Gilan Gharb and around the refinery city of
Abadan, 300 miles to the south. It conceded three Iranian soldiers
killed.
    Although war claims could not be independently verified, it was
clear that neither side made any ground gains.
    Western military analysts believe rain and snow will block any
tide-turning offensive at either end of the battlefront in the
five-month winter season that ends in April.
    Today was the 410th day in captivity for the 52 American hostages in
Iran. On Tuesday, Rajai said they could be freed by Christmas if the
U.S. government gave the Tehran regime a ''financial guarantee.''
    Jody Powell, President Carter's chief spokesman, and other U.S.
officials played down the statement, although the mood at the State
Department was more upbeat than it had been.
    One U.S. official said he wouldn't be surprised if there were a
''hooker'' in Rajai's statement but said he believes the hostages will
be home soon.
    Rajai's statement appeared to mean Iran might release the hostages
before the United States fulfills the ransom demands, which include a
call for the return of the late Shah Mohammad Reza Pahlavi's wealth.
    It was not clear whether the guarantee would require eventual full
U.S. compliance or merely a good faith effort to meet the demands.
    A major obstacle to ending the crisis has been that the U.S.
government is legally powerless to satisfy Iran's demands for the
return of the wealth of the late shah.
    
ap-ny-12-17 0753EST
**********

n999  0528  17 Dec 80
. . .
ebx cd
a551
r e wyfwyfzvt
BC-KUP-12-17
     KUP'S COLUMN
     By Irv Kupcinet
     (c) 1980 Chicago Sun-Times (Field News Service)
    Latest bumper sticker in D.C.: ''Free the Washington Two-Nancy
Reagan and her interior decorator!'' ...Marge Benton, as new chairman
of Northwestern University's Institute of Pyschiatry, scored this
coup for her first effort. She got Robert Redford to appear at a
benefit Feb. 11. He'll discuss his sensational movie, ''Ordinary
People,'' because the mentally disturbed youngsters portrayed in the
film are typical of those treated at the institute ...Singer Johnny
Desmond underwent cancer surgery at Cedars-Sinai in Los Angeles.
    
    United Artists studio, which suffered a massive blow when its $40
million movie, ''Heaven's Gate,'' was withdrawn from distribution,
just caught another one on the chin: Woody Allen is leaving the
studio to join Orion Productions, which was formed by former UA
execs. ...A new book, ''Reagan the Man, the President,'' soon to be
published by Macmillan, was written by five distinguished New York
Times correspondents-Hedrick Smith, Adam Clymer, Leonard Silk, Robert
Lindsey and Richard Burt. The authors trace his career from actor and
New Deal Democrat to Republican president. ...Anyone who loves skiing
and celebrities will enjoy ''Sun Valley,'' written by 79-year old
Dorice Taylor, former publicist at the Idaho ski resort. She knew all
the VIPs who visited there, from Groucho Marx to the shah of Iran.
...And Herb Cohen's ''You Can Negotiate Anything'' has climbed to No.
5 on the best-seller list and Cohen just received a six-figure fee
for the paperback rights. Not bad for a first-time author.
    
    Pianist-singer Bobby Short was long on talent at Chicago's Park West
the other eve, where he thrilled two huge audiences in a benefit for
Wisdom Bridge Theater. The following late dinner (to raise additional
funds) at Maxim's was as superb as the performance. And thanks to
Richard Keer of Glenmore Distilleries for picking up the tab for the
dinner as another contribution to Wisdom Bridge, one of the artistic
delights of Chicago's regional theaters. ...Best suggestion for a
lasting memorial to the late John Lennon comes from reader James
Delaney. He recommends that the thousands of young people who poured
forth so much adulation, in life and death, for the man who sang
their songs now take a few minutes to write to their congressmen,
demanding enactment of federal handgun-control legislation. That
would be translating their grief into a positive action. And he urges
that the legislation be called ''The Lennon Amendment.''
    
    President Carter is leaving office by establishing a record-for
presidential Christmas cards. A total of 120,000 cards, wishing you
season's greetings from ''Jimmy and Rosalynn,'' have been ordered by
the White House. How presidential Christmas cards have grown in
number is indicated, according to the Wall Street Journal, by the
fact that Herbert Hoover ordered only 250. Incidentally, the
Democratic National Committee, not the government, picks up the tab
for the cards. ...Tom Bosley of TV's ''Happy Days'' selected his own
happy day in January. That's when he'll wed actress Patricia Carr.
    
    Chicago, the home of radio's soap operas, may rise again with soaps
for cable and pay TV. ABA Productions is filming a new series, ''33
Brompton Place'' with the cable and pay-TV market in mind. An
all-Chicago cast has been hired for the series, being written by Tek
Osborne and produced by Tony Finocchio and Bob Rubel. ...Former champ
Jake La Motta, hyping the movie of his life, ''The Raging Bull,''
reports he worked one full year with Robert DeNiro before a camera
turned. ''I never met a guy like DeNiro before,'' La Motta exclaimed
in admiration. ''First, he went into training like a fighter and he
boxed with me every day for months. Then he started talking to me and
getting my story down on tape. You know, he's better than a
psychiatrist. Now he knows me better than I do.'' That helps explain
why DeNiro gives such a magnificent performance in the movie.
...Newton Minow is serving as chairman of the selection committee for
Rhodes Scholarships in Illinois.
    
    Tip to theatergoers: You'll miss a splendid performance if you don't
get to see James Baldwin's ''Amen Corner'' at Chicago's World
Playhouse. Val Gray Ward alone is worth the price of admission.
...Maurice Rosenfield, co-producer of the Broadway smash, ''Barnum,''
is elated over the signing of Stacy Keach to play the lead in the
touring company. . . Second City, the nation's No. 1 improvisational
theater, observed its 21st birthday Tuesday with a midnight
performance for the Chicago theater community. ...And sign spotted on
a store door: ''Please open BEFORE Christmas!''
    ENDIT KUPCINET
    
nyt-12-17-80 0828est
**********

a078  0627  17 Dec 80
PM-Hostages,500
    BEIRUT, Lebanon (AP) - The influential Ayatollah Mohammad Beheshti
told a news conference in Tehran today that he hoped Iran's new
statement on the American hostages would lead to a quick solution to
the crisis.
    But Beheshti, leader of the hard-line Islamic Republican Party,
would not reveal details of Iran's demand for U.S. financial
guarantees that could lead to release of the 52 Americans, in their
410th day of captivity today.
    Beheshti said the U.S. reply to Iran's four conditions and
modifications of the American position proposed by Iran, ''can give
both sides a very acceptable solution to the problem.''
    He said the U.S. response needed ''some necessary corrections,'' but
would not go into details of the Iranian position. Prime Minister
Mohammad Ali Rajai said Tuesday Iran sought ''financial guarantees''
from the United States and that the hostages could be freed by
Christmas if the U.S. government gave the guarantees.
    In Washington, U.S. officials were awaiting the Iranian message to
see if Iran is softening its demands for release of the hostages. Jody
Powell, President Carter's chief spokesman, and other U.S. officials
were trying to avoid raising any hopes following Rajai's statement.
    Rajai said Iran's statement represented a ''final reply'' in the
negotiations. The answer was expected to be relayed through Algeria,
which has been acting as intermediary in the negotiations.
    In Tehran, Algerian Ambassador Abdul Karim Gharieab said that the
Algerian diplomats still had not received a copy of the Iranian
response, but they expected to ''very soon.''
    Rajai's remarks Tuesday raised the possibility that Iran would be
satisfied with an American guarantee that it would try to meet the
demands rather than complete fulfillment of Iran's original four
conditions for release of the Americans.
    Iran wants a pledge that the United States will not interfere in
Iranian affairs, return of the wealth of the late shah and his family,
unfreezing of Iranian assets held in the United States and dropping
lawsuits against Iran in U.S. courts.
    From the U.S. government's viewpoint, it is legally powerless to
satisfy Iran's demands for return of the shah's wealth, which Iran
puts at $32 billion. The United States has also maintained that it
cannot cancel all legal claims against Iran that have been filed by
U.S. banks and companies who say they have lost investments in Iran
because of the Islamic revolution.
    Although he would not discuss details of Iran's latest position,
Beheshti again raised the possibility of trials for the Americans if
the United States fails to agree to Iran's conditions.
    Asked what the next step would be if the United States argues that
legal problems prevent compliance with the demands, Beheshti replied:
''Then the next step should be explained by the government or Majlis
(parliament). Maybe there will be a trial of these 52 Americans and
the aim of this trial is to show the world more details about the
American policy in Iran and the domination through this policy.''
    
ap-ny-12-17 0926EST
**********

a082  0643  17 Dec 80
PM-US-Iran, Insert, a044,60
WASHINGTON Insert after 5th graf: Inserts grafs 6-7 with Beheshti
comment
    In Tehran today, Ayatollah Mohammad Beheshti, head of the hard-line
Islamic Republican Party, told reporters he hoped the statement would
lead to a quick solution to the crisis.
    He would not disclose its contents but said the U.S. reply and
modifications of the American position proposed by Iran ''can give
both sides a very acceptable solution to the problem.''
    The United: 6th graf
    
ap-ny-12-17 0944EST
**********

a086  0708  17 Dec 80
PM-Yamani-Oil,400
    ZURICH, Switzerland (AP) - Oil Minister Sheik Ahmed Zaki Yamani was
quoted today as saying oil prices of $50 a barrel by next spring are
''not at all excluded'' unless the West reviews its oil stockpiling
policy.
    In an interview with the Zurich weekly Weltwoche conducted before
the Organization of Petroleum Exporting Countries meeting this week in
Bali, Indonesia, Yamani was quoted as predicting a ''mood of panic''
on markets if the war between Iraq and Iran lasts ''much longer.''
    The minister was quoted as saying that the recent increase of the
United States strategic oil reserves, France's decision against
reduction of its stockpiles and Japan's policy of increasing its
floating reserves ''are not good omens.''
    Yamani was quoted as explaining that such policies resulted in
buying pressure on the speculative spot markets leading to soaring
spot prices and eventually also pushing up regular OPEC contract
prices.
    ''If this trend (the Western stockpiling policy) is not stopped,
then they (the West) will have to pay for it. Then, there will be
considerable price increases. That I promise you,'' he was quoted as
saying.
    Asked whether this could mean prices of $50 a barrel by next spring,
Yamani was quoted as replying: ''That is not at all excluded. If the
gulf war continues much longer, a mood of panic will develop on the
markets and unless the Western governments react reasonably, you will
have that price soon.''
    U.S. oil industry sources calculate that if OPEC oil were to reach
an average price of $50 a barrel it would increase retail prices of
gasoline and heating oil by about 35 cents a gallon in the United
States.
    The Persian Gulf war has resulted in the loss of about 3 million
barrels a day to the market because most Iranian and Iraqi oil
production has been halted by the fighting.
    In Bali, OPEC ministers agreed to increase basic crude oil prices by
$2 to $4 a barrel with the maximum price pegged at $41 for a
42-gallon barrel. Saudi Arabia, the world's largest exporter, has
increased its price to $32 a barrel effective Nov. 1.
    The U.S. Energy Department said the OPEC decisions could raise the
average price by about $3 a barrel to nearly $35 and could add about 5
cents a gallon to U.S. retail prices for gasoline and heating oil.
    
ap-ny-12-17 1009EST
**********

a096  0810  17 Dec 80
PM-US-Iran, Insert, a044,80
WASHINGTON Insert after 3rd graf: Inserts new grafs 4-6 with Muskie
comment
    Secretary of State Edmund S. Muskie, appearing on NBC-TV's ''Today
Show'' this morning, was asked whether there was any chance the
hostages will be out by Christmas.
    ''There is a chance,'' he replied. ''How much of a chance, as has
been the case all year long, is an iffy question.''
    Muskie said that until the United States knows the details of Iran's
response, ''we really don't know whether they're asking us to go
beyond where we've said we can go.''
    One U.S.: 4th graf
    
ap-ny-12-17 1111EST
**********

a098  0820  17 Dec 80
PM-US-Iran, Insert, a096,90
WASHINGTON Insert after 11th graf: The United xxx United States:
Inserts new grafs 12-14 with White House official's comment on
prospects
    A senior White House official said today that the United States does
not expect to hear from the Algerian intermediaries until the
weekend.
    This official, who declined to be identified, suggested that while
the Iranians are saying that the offer of financial guarantees is the
only remaining obstacle for the relase of the hostages, the matter of
resolving the form of such guarantees is what has been holding up the
process for the last several weeks.
    ''If there really was a breakthrough, we would have gotten a signal
from the Algerians by now and that has not come,'' said the official.
    Rajai told: 12th graf
    
ap-ny-12-17 1121EST
**********

a102  0837  17 Dec 80
PM-Hostages, Insert, a078,170
BEIRUT, Lebanon Insert after 4th graf: New grafs 5-7 Muskie comments,
new graf 9 White House comment
    Secretary of State Edmund S. Muskie, appearing on NBC TV's ''Today
Show'' was asked about Beheshti's statement.
    ''Corrections to them (the Iranians) could be something substantive,
or it could be something technical, or it could be something
involving the modalities of implementing an agreement; we really don't
know which it is.
    ''Sometimes they put these significant points in the context of
something insignificant in order to try to persuade us to take them.''
    In Washington, U.S. officials were awaiting the Iranian message to
see if Iran is softening its demands for release of the hostages. Jody
Powell, President Carter's chief spokesman, and other U.S. officials
were trying to avoid raising any hopes following Rajai's statement.
    A senior White House official who declined to be identified said the
United States did not expect to hear from the Algerian intermediaries
until the weekend. ''If there really was a breakthrough, we would
have gotten a signal from the Algerians by now and that has not
come,'' the official said.
    Rajai said: 6th graf
    
ap-ny-12-17 1138EST
**********

a208  1015  17 Dec 80
AM-Foreign Briefs,520
    RIYADH, Saudi Arabia (AP) - Saudi Arabia is arranging an Arab summit
in an effort to end quarrels between feuding Arab states, the
newspaper al-Madina al-Monawarrah reported Wednesday in a dispatch
quoting unidentified diplomatic sources.
    It quoted the diplmoats as saying Syria, Libya, Iraq and Jordan
would attend the session but did not say when or where it would occur.
It said the Saudis were eager to end quarreling before an Islamic
conference next month in Mecca, the Saudi city revered by all Moslems.
    A decade-long Syrian-Iraqi feud was compounded by Syria's support
for Iran in its war with Iraq. Libya, which is planning a merger with
Syria, also sides with Iran. Relations between Syria and Jordan
became tense because of a Syrian-led boycott of an Arab summit last
month in Amman and the deployment of Syrian troops near Jordan,
although that crisis appears to have been settled by Saudi mediation.
    ---
    BONN, West Germany (AP) - The West German Finance Ministry on
Wednesday released a draft $112.3 billion federal budget for 1981 that
includes a 6.2 percent defense spending increase. Experts said it was
unlikely the military expenditures would meet the nation's NATO
commitment after they were adjusted for inflation.
    The defense portion of the budget, not counting expenditures for
allied troops stationed in West Germany, totaled $20.8 billion, up
from the $19.4 billion budgeted this year.
    NATO allies have pledged an annual defense spending increase of at
least 3 percent in real terms to offset what they view as a Soviet
bloc military buildup. Many West German politicians have indicated the
country may not meet that commitment.
    ---
    MANILA, Philippines (AP) - A total of 120 earthquakes rocked the
small central Philippines island of Siquijor over a three-day period,
causing minor damage but no casualties, authorities said Wednesday.
    The earthquakes, recorded Sunday through Tuesday on the island 415
miles southeast of Manila, were of moderate strength, seismologists
said.
    Meanwhile, a moderate earthquake Wednesday shook some parts of the
southern Philippines including the provinces of Agusan del Norte and
Davao. No casualties were reported.
    ---
    ROME (AP) - Yugoslav President Cvijetin Mijatovic arrived in Rome
Wednesday at the start of a three-day official visit that includes
meetings with President Sandro Pertini and Premier Arnaldo Forlani.
    On Friday, the Yugoslav president is scheduled to be received by
Pope John Paul II in a special Vatican audience.
    ---
    LONDON (AP) - The pace of wage increases in Britain is slowing down,
the Department of Employent reported Wednesday.
    In the year ending in October, earnings grew by 20 percent compared
with 26.1 percent in the 12 months ending in September.
    The Department of Employment statistics showed earnings still rising
more quickly than the cost of living. Britain's annual inflation rate
is 15.4 percent.
    
ap-ny-12-17 1316EST
**********

a211  1040  17 Dec 80
AM-Washington Briefs,600
    WASHINGTON (AP) - Secretary of State Edmund S. Muskie will meet
Thursday with United Nations Secretary-General Kurt Waldheim for a
review of a series of international issues, the State Department
announced Wednesday.
    U.S. officials described the meeting as routine and said likely
topics are the Iran hostage situation, the Iran-Iraq war, the
Afghanistan situation and Namibia.
    The luncheon meeting will be held at U.N. headquarters in New York.
    ---
    WASHINGTON (AP) - Light precipitation is expected across most of the
country over the next 30 days, the National Weather Service forecast
Wednesday.
    The outlook through mid-January calls for heavy snow or rainfall
only in the coastal regions of Washington state and Oregon, along the
Gulf Coast and along the Atlantic Coast north about to Norfolk, Va.
    Light precipitation is the outlook elsewhere.
    The weather service expects below-normal temperature readings in the
New England and Atlantic Coast states except the southern tip of
Florida. Temperatures below normal also are anticipated in south
Texas, Michigan, Ohio, West Virginia, northern Indiana, eastern
Kentucky and Tennessee and southern Alabama.
    Temperatures are expected to be above normal for the season in
Idaho, Montana, the Dakotas, Nebraska, Wyoming, Northern Colorado,
Nevada, southern and western Arizona and Southern California.
    Readings should be about normal in other parts of the country.
    ---
    WASHINGTON (AP) - Many small competitors of the American Telephone &
Telegraph Co. could be freed from federal regulation by the Federal
Communications Commission.
    FCC officials said Tuesday the law does not require regulation of
companies that do not have the capacity to dominate their markets. If
the panel's deregulation proposal is adopted after public comment,
companies competing with AT&T in offering long-distance telephone
service and those providing domestic satellite service would no longer
be federally regulated.
    Full regulatory scrutiny would remain for telephone companies with a
local monopoly, AT&T and Western Union's telex service.
    The FCC also finished reviewing its April order deregulating the
telephone equipment market and setting up guidelines for AT&T's entry
into new markets.
    ---
    WASHINGTON (AP) - The Washington Star on Wednesday announced rate
increases for home delivery and Sunday single-copy sales.
    The changes, to take effect Jan. 4, will bring the price of the Star
up to that of the rival Washington Post.
    Daily and Sunday home delivery will be $1.75 per week, up from
$1.55; daily-only home delivery will be $1.05 per week, up from 90
cents, and weekend delivery will be 90 cents per week, up from 80
cents. The Sunday single-copy price will be 90 cents per copy, up from
75 cents. The daily single-copy price will remain at 20 cents.
    George Hoyt, the Star's publisher, attributed the price increase to
higher operating costs.
    ---
    WASHINGTON (AP) - President Carter on Wednesday named Moctesuma Diaz
Esparza, a Los Angeles film-maker, to the Commission on Presidential
Scholars.
    Esparza, a producer of award-winning films, is vice president of the
Euclid Foundation. He is a member of the Los Angeles Bicentennial
Committee and served on the National Endowment for the Humanities
review panel on public media.
    
ap-ny-12-17 1342EST
**********

a214  1112  17 Dec 80
AM-Iran-Khomeini, Bjt,520
Khomeini Acts To Halt Secular-Religious Strife
By EARLEEN F. TATRO
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian leader Ayatollah Ruhollah Khomeini
acted Wednesday to head off new religious-secular confrontations by
canceling nationwide protest marches by hardline Islamic leaders
against secular followers of President Abolhassan Bani-Sadr.
    It was the second time in less than six weeks that the 80-year-old
supreme religious and political leader personally intervened in the
power struggle between supporters of the relatively moderate Bani-Sadr
and Islamic fundamentalists.
    Pro-clergy demonstrations had been scheduled for Thursday to combat
a wave of anti-clergy actions in several Iranian cities in recent
days.
    Officials in Tehran and other cities denied on Wednesday that there
were new demonstrations in the country.
    In canceling the pro-clergy demonstrations, Khomeini said in a radio
address he wanted to preserve national unity in the 13-week-old war
between Iran and Iraq. He said public displays of Iran's internal
divisions could not be permitted, not even ''if I and my portrait are
insulted.''
    A spokesman for the revolutionary guards, the powerful paramilitary
organization, said posters of Khomeini and his hand-picked successor,
Ayatollah Hossein Ali Montazeri, were torn from the walls in the
northeastern city of Mashhad during recent protests by Bani-Sadr
supporters.
    The spokesman, who was interviewed in Tehran by telephone from
Beirut Wednesday, said the anti-clerical demonstrations in Mashhad and
an unspecified number of other cities were ''not so important.'' He
said the protests were ''set up by supporters of Bani-Sadr and
speeches were delivered in different cities insulting the clergy.''
    Bani-Sadr, who has appeared more moderate on such things as settling
the issue of 52 American hostages, has repeatedly clashed with Prime
Minister Mohammad Ali Rajai in a power struggle over formation of a
new government. Rajai's supporters include the clergy-oriented Islamic
Revolutionary Party.
    In response to anti-clerical demonstrations, clerical forces called
for nationwide protest marches Thursday throughout Iran against
Bani-Sadr supporters, who were denounced as ''American stooges'' and
''fifth column agents of the Iraqi enemy.''
    Another factor behind the call for demonstrations was the
resignation on Monday of Ayatollah Jallaledin Taheri as the chief
prayer leader in Isfahan. Taheri said he was resigning in protest of
the anti-clerical campaign, and his followers subsequently called for
massive demonstrations in Isfahan and in all other Iranian cities.
    While urging cancellation of the demonstrations for the sake of
national unity, Khomeini said he appreciated the sentiments of those
who supported the clergy. But Khomeini made clear that he opposed the
call for national protests against Bani-Sadr moderates.
    The last time Khomeini intervened to defuse the struggle between
hardliners and moderates was on Nov. 10 when he ordered the release of
former Foreign Minister Sadegh Ghotbzadeh, a Bani-Sadr supporter.
Ghotbzadeh had been arrested Nov. 8 by revolutionary guards after he
criticized the state-run radio and television stations, which are
dominated by hardline clergy.
    
ap-ny-12-17 1413EST
**********

a242  1452  17 Dec 80
AM-Iran-Iraq War,400
Iraq Says Iranian Attack Repulsed
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq's military command reported Wednesday
that Iraqi troops repulsed a tank-led Iranian attack aimed at breaking
a siege of Susangerd, a key highway junction in Iran's Khuzistan
province.
    Baghdad also claimed that Iraqi forces smashed an Iranian paratroop
assault at Gilan Gharb in the snow-blanketed western highlands, where
the war appeared to have reached a winter standoff.
    Iran's official news agency said 52 Iraqis were killed in the
northern sector of the 300-mile front in a series of battles in the
87th day of the Persian Gulf war.
    Iranian leader Ayatollah Ruhollah Khomeini, meanwhile, canceled
nationwide protest marches by pro-clergy hardliners against secular
moderates on grounds he wanted to maintain Iran's unity in the war
effort.
    Although there appeared little major action in the war, both sides
continued to issue communiques reporting clashes. The rival claims
could not be verified.
    One Iraqi communique claimed 34 Iranian troops were killed, six
tanks destroyed and one helicopter gunship shot down in dusk-to-dawn
combat at Susangerd and Gulan Gharb.
    The Iraqi news agency said Iraqi forces were using U.S.-made tanks
and artillery captured from Iran and that a special division of
soldiers had been trained to use the equipment.
    ''The Iraqi fighters who used these weapons are very pleased with
the good results they have achieved against the Iranian enemy,'' the
agency quoted an army commander as saying. The Iraqi army is mainly
equipped with Soviet-made weapons.
    Neither side claimed any ground gains and Western military analysts
in the Middle East believe snow and heavy rains would prevent either
country from mounting tide-turning offensives in the five winter
months that began in December.
    Both Iran and Iraq claimed their helicopter gunships rocketed enemy
positions around the besieged Iranian oil city of Abadan on the
eastern shore of the Shatt al-Arab waterway.
    An Iraqi communique said an Iranian troop concentration near Abadan
was attacked by Iraqi forces and that 53 Iranians were killed.
    Eyewitness reports in the Lebanese press said the population of
Abadan, down from 400,000 to 150,000 since the war broke out Sept. 22,
has no gasoline for cars and because Iraqi air and artillery
bombardment had brought refining operations to a standstill.
    
ap-ny-12-17 1752EST
**********

n070  1520  17 Dec 80
AM-IRAN
Terms of Iran's New Conditions on Hostages' Release Still Secret
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN - The terms of the new Iranian conditions for the release of
the 52 American Embassy hostages remained a closely-guarded secret on
Wednesday.
    Neither members of the Parliamentary Commission on the Hostages,
headed by Minister of State for Executive Affairs Behzad Nabavi, nor
the delegation of Algerian officials here acting as go-betweens broke
the strict silence they have maintained since the latest American
response was delivered 14 days ago.
    Indeed, it was not even known Wednesday whether the Iranian position
had been formally written up and given to the Algerians.
    Prime Minister Mohammed Ali Rajai on Tuesday received approval from
Ayatollah Ruhollah Khomeini for what he described as the ''final
answer'' on Iran's demand for the release of the hostages, held now
for 13 1/2 months.
    Speaking after he had met with Khomeini on Tuesday morning, Rajai
said all that was necessary for the hostages' release was ''financial
guarantees from the United States which are to be assured through the
Algerian government.''
    The term ''financial guarantees'' appeared to be a new addition to
the lexicon of negotiations. Previously, Iranian officials had spoken
of the ''return'' of the Iranian assets impounded in the United
States and of the late Mohammad Reza Pahlavi's wealth. What was meant
by ''guarantees'' however, was not known.
    But the sudden announcement that a proposal had been drawn up
appeared to reflect a desire on the part of the Islamic
traditionalist political forces - who have exercised effective
control over the hostage's fate - to end the crisis.
    For more than a year, the hostage issue has been a focal point of
the bitter struggle between the religious traditionalists,
represented by the Islamic Republic Party and the more Westernized,
liberal political elements clustered around President Abolhassan
Bani-Sadr.
    The Islamic traditionalists, frustrating Bani-Sadr's efforts to
resolve the crisis, have used the issue to batter the liberals,
accusing them of ''deviating from the imam's (Khomeini's) line,'' and
undercutting the president's power. Now, having accepted
responsibility for the hostages in the clerically-dominated
parliament, they find the issue of little use and appear to be ready
to get rid of the problem.
    Several of the leading religious figures, including the speaker of
the Parliament, Hojjatolislam Hashemi Rafsanjani, have been making
encouraging statements about the latest American response in recent
days, with the speaker saying the issue ''is now much closer to being
solved.''
    The leader of the Islamic Republican Party, Ayatollah Mohammed
Beheshti, told a news conference Wednesday that the American position
''could be nearly an acceptable answer.''
    But, apparently referring to the conditions drawn up by Rajai, he
added that ''there were some necessary corrections.''
    If the United States accepted the new conditions, Baheshti said,
''then both sides could begin the actual steps'' toward releasing the
hostages.
    Baheshti, who heads the Supreme Court, once again raised the
possibility that the hostages might be tried as spies if the United
States should turn down the conditions.
    The liberals around Bani-Sadr - and apparently the president
himself, who was off on one of his frequent trips to the war front -
appear to be totally isolated from and ignorant of the proposal drawn
up by Rajai and his associates.
    Even Ali Reza Nobari, director of the Central Bank and the leading
fiscal technocrat here, has been kept out of the deliberations,
sources here say. One of the two individuals to understand the
complex financial dealings, Nobari, who is allied with Bani-Sadr, has
spent more than a year studying the late shah's wealth and Iran's
assets in the United States.
    These are believed to be the crucial issues in the negotiations.
    
nyt-12-17-80 1820est
**********

n071  1524  17 Dec 80
AM-IRAN Addatend
NYT TEHRAN: the negotiations.
    Meanwhile, the power struggle between the Islamic traditionalists
and the liberal group has continued around other issues and has
greatly intensified in recent days.
    The latest round of clashes began two weeks ago when an associate of
Bani-Sadr, Ahmad Salamatian, gave a speech in the city of Mashad,
which drew strenuous objections from the clergy.
    Salamatian is a parliamentary deputy from the city of Isfahan, and
the Islamic Republican forces demonstrated there, calling for his
removal at the Friday prayers meeting. The Isfahan bazaar was closed,
at the traditionalists' behest, to protest alleged insults to the
clergy, and the city's Friday prayer leader announced that he was
leaving town in disgust.
    The uproar continued in the Parliament, with clerical supporters
charging that a portrait of Khomeini had been ripped up during
scuffles in Isfahan last week. Wednesday, 67 deputies accused
Bani-Sadr of revealing state secrets in the ''President's Diary''
column he writes detailing his woes in his newspaper, Islamic
Revolution.
    The Islamic Republican forces had called for nationwide
demonstrations Thursday to express support of the ''militant clergy''
and to call for ''national unity.'' The marches were widely
interpreted as an intensification of their campaign against the
liberals.
    But, Wednesday, Khomeini ordered that the marches not be held
''considering the sensitivity of the situation and the war that we
are facing at present.''
    His announcement appeared to be yet another example of the balancing
act he has been maintaining between contending forces here, coming
down this time to rein in the clerics. Indeed, Khomeini's
announcement came even as Baheshti was calling in his news conference
for participation in the support of the clergy's march.
    
nyt-12-17-80 1824est
**********

n072  1537  17 Dec 80
BC-HAIG
Haig Will Face Foreign Service, as Well as Foreign Policy, Problems
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Alexander M. Haig, Jr., the secretary of
state-designate, will be coming to Washington not only with an
unusual number of foreign policy problems demanding immediate
attention, but with a looming personnel crisis that many State
Department officials say could endanger the integrity of the career
Foreign Service.
    Every new secretary of state has to deal promptly with pressing
policy and personnel matters, but both Reagan and Carter
administration aides assert that Haig is faced with special problems.
These have only been aggravated, they say, by the necessity for Haig
to spend time preparing for a promised investigation of his role
during the Nixon administration at his confirmation hearings, which
begin Jan. 9.
    Haig, former commander of the North Atlantic Treaty Organization
forces and now president of the United Technologies Corp. of
Hartford, Conn.,intends to fly to Washington as soon as he recovers
from a flu attack to confer with Secretary of State Edmund S. Muskie
and begin preparing for a smooth takeover on Jan. 20, assuming he is
confirmed by the Senate.
    Haig's appointment by President-elect Ronald Reagan Tuesday seemed
to draw mixed reactions at the State Department.
    Conversations with several department officials produced positive
comments about Haig's political and diplomatic-military experience.
    State Department officials generally want their secretary to be
perceived as predominant in foreign policy matters, and the initial
judgment was that Haig would clearly be in charge of the Reagan
administration's international dealings.
    Haig's foreign policy views drew less comment, in part because many
officials professed to be uncertain of the course he will follow on
many key issues. In Washington, Haig in the past has been highly
regarded as an implementor of policy rather than as an originator.
    In recent years, Haig has spoken out often against the perceived
Soviet military threat and has seemed to disavow his role in helping
Henry A. Kissinger and President Nixon develop detente with the
Russians.
    He said in a speech to the Republican National Convention in July
that the ''twin pillars'' of policy,errence, had
failed.
    Haig also attacked a human rights policy that has ''the practical
consequence of driving authoritarian regimes, traditionally friendly
to the West, into totalitarian models.'' He also warned the Western
allies that ''the days are gone when they could sit on the sidelines
and alternately carp or support America alone for the burdens of
their freedom.''
    The foreign policy priorities facing Haig and the Reagan
administration include the following, Reagan aides said: Overall
relations with the Russians, in particular the possible resumption of
talks leading to arms control negotiations, and the implications of a
possible Soviet move into Poland; the Iranian crisis if the hostages
are not freed, and future relations with Iran if they are; the
Iran-Iraq war, which threatens Western oil supplies in the region;
the civil strife in Central America; and the Israeli-Egyptian
negotiations on Palestinian self-rule.
    Many State Department officials complained that the Reagan
transition teams have been talking of major personnel changes in the
bureaucracy that go beyond the usual top-level switches when an
administration is changed.
    Richard V. Allen, Reagan's senior foreign policy adviser, who is
expected to be the national security coordinator at the White House,
said Wednesday that there would be major changes in the department.
    He said there are more than 22 policy-making jobs and that each of
these positions has about two deputies.
    That would mean at least 60 jobs that should be filled by Reagan
people, he said.
    But he indicated that this did not mean that all the positions would
be filled from the outside; certain career Foreign Service officers
who were deemed able to carry out Reagan's policies energetically
could be assigned to the posts, he said.
    Actually, administrations in the past have reassigned officers and
brought in new people at the start of a term. The difference now is
that the Reagan team seems to want to give more of a
publicly-identified political coloration to new asignments.
    This upsets traditionalists in the Foreign Service, who argue that a
Foreign Service officer should be regarded as non-partisan and able
to serve any administration equally well in whatever position the
person is assigned.
    Associates of Haig predicted Wednesday that he would insist on
having his own choices in the most important positions.
    Haig, however, in an article published in the Washington Quarterly
this fall, seemed to support the idea of a professional bureacracy as
important.
    ''The best way to sustain professional motivation and morale is to
use the buraucracy and draw on its talents, skills and experience,''
he said. ''Because of their dedication, the career professionals can
have no better incentive than a sense of real participation in the
work of government. A wise administration will leave to the
professionals - under appropriate policy-level supervision - the
tasks they are best qualified to undertake.
    ''Regardless of the short-run benefits a given administration might
derive,'' he said, ''few things could be more deleterious to the
long-term interests of our nation than a politicization of our
professional military and civilian career services.''
    
nyt-12-17-80 1837est
**********

a261  1642  17 Dec 80
AM-Hostages,450
Clergyman Says U.S. Position Needs 'Corrections'
    BEIRUT, Lebanon (AP) - Iran's Ayatollah Mohammad Beheshti said
Wednesday the U.S. position on negotiations to free the 52 American
hostages needed ''corrections,'' but that he hoped a new Iranian
statement would lead to a quick solution to the hostage issue.
    Beheshti, influential leader of the hardline Islamic Republican
Party, declined to discuss details of what Prime Minister Mohammad Ali
Rajai has termed Iran's ''final reply'' on conditions for release of
the Americans. The hostages spent their 410th day in captivity
Wednesday.
    An Algerian delegation was in Tehran awaiting the Iranian statement
for relay to the United States. They said it was expected ''very
soon.''
    In Washington, a senior White House official said the United States
did not expect to hear from the Algerian intermediaries until the
weekend. ''If there really was a breakthrough, we would have gotten a
signal from the Algerians by now and that has not come,'' said the
official, who declined to be identified.
    U.S. officials, while trying not to raise false hopes, were waiting
to see if the official Iranian message shows that Tehran is softening
its demands.
    Rajai said Tuesday Iran wanted ''financial guarantees'' from the
United States and that if such guarantees were forthcoming the
hostages could be released by Christmas.
    The Iranian statement was drafted after the United States sent
Tehran a reply to clarify its initial response to Iran's four
conditions for release of the hostages.
    Beheshti, at a Tehran news conference, said the U.S. reply and
modifications of the American position proposed by Iran ''can give
both sides a very acceptable solution to the problem.''
    He said the U.S. response needed ''some necessary corrections.''
    When asked about Beheshti's remarks, U.S. Secretary of State Edmund
S. Muskie told NBC TV's ''Today Show:''
    ''Corrections to them (the Iranians) could be something substantive,
or it could be something technical, or it could be something
involving the modalities of implementing an agreement; we really don't
know which it is.''
    Rajai had appeared to indicate that Iran might release the hostages
before the United States fulfills all four Iranian conditions, which
include return to Iran of the late shah's wealth and cancellation of
pending legal claims against Iran.
    The other two conditions are release of Iranian assets frozen in the
United States and a pledge that the United States will not interfere
in Iranian affairs.
    The first two conditions are the most difficult for the United
States. The Carter administration has said it cannot legally satisfy
Iran's demands for return of the shah's wealth or cancel legal claims
against Iran filed in U.S. courts.
    
ap-ny-12-17 1943EST
**********

a263  1653  17 Dec 80
AM-US-Iran,400
US Hopes To Arrange Christmas Observance for Hostages
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - The State Department is trying to arrange a
''Christmas observance'' for the American hostages in Iran in the
event negotiations do not bring them home for the holiday, officials
said Wednesday.
    A year ago, three American clergymen performed religious services on
Christmas Day at the U.S. Embassy compound in Tehran, and U.S.
officials said they were attempting to work out a similar arrangement
this year.
    Meanwhile, a senior White House official cautioned against
speculation about an early end to the hostage situation despite
statements Tuesday by Iranian Prime Minister Mohammad Ali Rajai that
Iran is anxious to negotiate a settlement.
    Rajai said Iran has drafted its ''final reply'' to the United States
and would not insist on U.S. fulfillment of Iran's financial demands
before the hostages are released.
    Instead, he said, Iran would require only U.S. guarantees that
Iran's demands will be met. He also held out the possibility that the
hostages could be home for Christmas.
    The White House official, who asked not to be named, said, ''If
there really was a breakthrough we would have gotten a signal by now
from the Algerians and that hasn't come.''
    Algerian intermediaries are expected in Washington in a few days
with the details of Iran's formal reply.
    Secretary of State Edmund S. Muskie, appearing on NBC TV's ''Today
Show,'' was asked Wednesday whether there was any chance the hostages
would be released by Christmas.
    ''There is a chance,'' he replied. ''How much of a chance, as has
been the case all year long, is an iffy question.''
    Muskie said until the United States knows the details of Iran's
response, ''we really don't know whether they're asking us to go
beyond where we've said we can go.''
    State Department spokesman John Trattner gave no details of the
administration's effort to arrange a Christmas observance beyond
saying it is working through ''various avenues.''
    Last year, the religious services were performed by the Rev. William
Sloan Coffin of the Riverside Church in New York City, the Rev.
William Howard, a Baptist and head of the National Council of
Churches, and the Roman Catholic Auxiliary Bishop of Detroit, Thomas
Gumbleton.
    An aide at the Riverside Chuch said Coffin has not been approached
about a Christmas visit to Tehran. The other two clergymen could not
be reached for comment.
    
ap-ny-12-17 1953EST
**********

a266  1710  17 Dec 80
AM-Iran-Iraq War, INSERT, a242,90
BEIRUT, Lebanon, to update with U.N. officials working out Shatt
al-Arab evacuation, INSERT after 4th graf: Iranian leader ... war
effort.
By FAROUK NASSAR
Associated Press Writer
    U.N. Assistant Secretary-General Diego Cordovez flew from New York
to London on Wednesday to consult the U.N. Inter-Governmental Maritime
Consultative Organization on how best to evacuate 70 ships from 23
countries trapped in the Persian Gulf's Shatt al-Arab waterway since
the war began, a U.N. spokesman said.
    Cordovez, an Ecuadorean, later was to fly to Stockholm, Sweden, to
discuss the evacuation with special U.N. peace envoy Olof Palme.
Cordovez and Palme visited Iran and Iraq last month and reported both
countries had agreed to let the ships leave under the Red Cross flag.
    Although there, 5th graf
    
ap-ny-12-17 2011EST
**********

a018  0036  18 Dec 80
PM-Christmas Tree, Bjt,320
Carter Will Leave It Dark 2nd Straight Year
    WASHINGTON (AP) - President Carter, dedicating the national
Christmas tree tonight, has decided to leave it unlit again to honor
the 52 Americans who may have to spend a second Christmas as hostages
in Iran.
    But the president's action to keep the tree dark for a second
straight year may not meet with universal approval from hostage
families.
    If it were up to her, said Louisa Kennedy, wife of hostage Moorehead
Kennedy, the tree would be lit.
    ''I think it should be lit because it's there for many other
reasons,'' she said Dec. 2, the day hostage wife Penne Laingen was
hoisted in a crane and placed the crowning ornament atop the tree. Her
husband is L. Bruce Laingen, who was charge d'affaires in Tehran when
the embassy was seized.
    ''It's an institution that should go on the way all our institutions
should go on, regardless of what takes place in Iran,'' Mrs. Kennedy
said.
    Hostage family members will participate in the ceremony dedicating
the living 30-foot blue spruce, which has served as the national
Christmas tree since 1978.
    It is on the Ellipse, a garden south of the White House. Smaller
trees, for each state, territory and the District of Columbia, are
nearby.
    Bell ringers, bands, choral and gospel groups will perform every
evening from Friday to next Tuesday near the base of the tree, an
occasion which each year draws thousands of visitors to the site.
    While negotiations for the release of the hostages have inched
forward for more than a month, there is scant expectation here of a
breakthrough before Christmas.
    Carter is known to hope that the crowning achievement of his
administration, which ends Jan. 20, will be the return of the
hostages.
    
ap-ny-12-18 0337EST
**********

a022  0119  18 Dec 80
PM-Iran Unrest, Bjt,600
Protests Latest Flare-Up in Secular-Clergy Confrontation
An AP News Analysis
    EDITOR'S NOTE - The writer is an Associated Press correspondent
formerly stationed in Iran who continues to follow events there from
his Mideast listening post in Beirut.
    ---
By NICOLAS B. TATRO
Associated Press Writer
    BEIRUT, Lebanon (AP) - A mounting wave of protests and
counter-protests in Iranian cities is the latest flare-up in a power
struggle between secular, Westernized politicians and the Moslem
clergy, two factions trying to shape revolutionary Iran to their own
designs.
    The key showdown appears to be between Iran's top two government
figures, President Abolhassan Bani-Sadr and the clergy-backed prime
minister, Mohammad Ali Rajai.
    The anti-clergy demonstrations, pro-clergy strikes and virulent
denunciations of the president in Parliament clearly have Ayatollah
Ruhollah Khomeini worried about the survival of his new Iran.
    Twice in the past six weeks, Iran's supreme leader has personally
intervened to prevent confrontations, and he has repeatedly made
appeals for national unity.
    The home-front turmoil is taking place as the 3-month-old war with
Iraq causes increasing economic hardships for Iranians, strict
rationing of fuel and heating oil, nighttime blackouts and bans on
private cars. Many analysts see Iraq's invasion of Iran as an attempt
to put so much strain on the Khomeini regime that it will collapse.
    Mehdi Bazargan, who resigned as prime minister in November 1979 in
the aftermath of the U.S. Embassy seizure, represented the
Western-educated, left-leaning secular faction of the revolution,
those who now support Bani-Sadr. They and their colleagues had joined
with the conservative, fundamentalist clergy in order to oust the
Pahlavi monarchy, but disagreed with their plans to fit Iran into a
sternly religious and traditional mold.
    The simmering conflict broke into the open last month with the brief
detention of Bani-Sadr's ex-foreign minister, Sadegh Ghotbzadeh,
because he had criticized the way the clergy handled television
programming. Ghotbzadeh earlier accused the clergymen-politicians of
wrecking the economy and failing to prepare adequately for the war.
    Bani-Sadr and his rival Rajai have both complained there are no
clear lines of authority, and their offices at times issue conflicting
orders.
    The conflict appears to have touched most levels of society:
anti-clerical leaflets were reported circulating in the army; a member
of Parliament warned a coup d'etat was imminent; bazaar merchants
staged a strike against the clergy.
    Ayatollah Mohammad Beheshti, leader of the Islamic Republican Party,
which is the clergy's power base and which dominates the Parliament,
told a news conference Wednesday that the Iranian people would ''not
bear this kind of damage'' caused by the anti-clerical protests.
    ''We condemn any diversion from the pure path of Islam and any kind
of troublemaking to divide the dedicated and responsible clergy and
all the heroic people,'' Beheshti said.
    Only the 80-year-old, ailing Khomeini seems able to calm the
disputes. On Wednesday, he ordered the cancellation of a scheduled
nationwide strike and pro-clergy demonstrations. A committee of
''wisemen'' has been appointed to try to restore harmony.
    The growing paralysis of the government was demonstrated repeatedly
in the handling of the case of the 52 American hostages.
    It took months for the Parliament to agree on terms for their
release, and then only after fundamentalist hard-liners staged a
last-minute boycott, demanding that the captive Americans be put on
trial as spies.
    In the past, the hostages have been used as tools in Iran's
revolutionary power struggles, and they could yet serve that purpose
again. But both Rajai and Bani-Sadr seem eager to get the hostages out
of Iran, perhaps to clear the boards for their final political
showdown.
    
ap-ny-12-18 0419EST
**********

a044  0353  18 Dec 80
PM-Hostages,440
URGENT
Rajai Reiterates Demand For US Guarantees
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iranian Prime Minister Mohammad Ali Rajai
said today the United States can win the release of the 52 American
hostages before the Christmas holidays if Washington ''can give the
necessary guarantees,'' the official Pars news agency reported.
    Rajai made the statement after a one-hour meeting with Sweden's
ambassador to Tehran, who deplored the continuing crisis of the
hostages, who today spent their 411th day in captivity.
    ''Every measure to speed up the release of the hostages depends on
the U.S. government,'' Rajai said. ''The United States can release the
hostages before the Christmas holidays if they can give the necessary
guarantees.''
    He said Iran's ''final reply'' in the negotiations for the release
of the captive Americans ''will be sent to the United States in the
near future.''
    Iran's revolutionary leader, Ayatollah Ruhollah Khomeini, gave his
blessing to the final response prepared by Rajai and his cabinet on
Tuesday.
    U.S. officials in Washington reacted cautiously, saying they wanted
to first see the Iranian reply which carries a demand for a guarantee
on meeting the financial terms for the release of the hostages.
    On Nov. 2, Iran's parliament laid down four conditions for ending
the crisis: return of the late shah's wealth, unfreezing of Iranian
assets in U.S. banks, dropping of legal claims against Iran and a
pledge of U.S. non-interference in Iranian affairs.
    Those guarantees were believed to be assurances that the shah's
assests would be considered Iranian national property and that the $8
billion in Iranian assets frozen in the United States would be
returned.
    Rajai also attacked European nations for backing the U.S. government
in the hostage crisis.
    ''We have repeatedly announced that a number of hostages are spies
and have delivered the proof,'' he said.
    ''Our question is this: why do the countries which claim to be
freedom-seeking keep silent? They take no action. They only talk.''
    Rajai said it was the United States which politicized the hostage
crisis by imposing economic sanctions supported by European nations.
    ''They imposed economic sanctions ... for the sake of the hostages
and maintaining good relations with the United States,'' he said.
''But they showed no reaction to the crimes of (Iraqi President)
Saddam'' (Hussein).
    Iran's government has repeatedly claimed that in the 13-week old war
with Iraq the invading Iraqi forces committed war crimes by attacking
civilian population centers with ground-to-ground missiles.
    ''In fact it was the United States itself which mixed the issue of
the hostages with political issues and postponed their release,''
Rajai said.
    
ap-ny-12-18 0654EST
**********

n004  0619  18 Dec 80
BC-KUP-12-17
     KUP'S COLUMN
     By Irv Kupcinet
     (c) 1980 Chicago Sun-Times (Field News Service)
    Latest bumper sticker in D.C.: ''Free the Washington Two-Nancy
Reagan and her interior decorator!'' ...Marge Benton, as new chairman
of Northwestern University's Institute of Pyschiatry, scored this
coup for her first effort. She got Robert Redford to appear at a
benefit Feb. 11. He'll discuss his sensational movie, ''Ordinary
People,'' because the mentally disturbed youngsters portrayed in the
film are typical of those treated at the institute ...Singer Johnny
Desmond underwent cancer surgery at Cedars-Sinai in Los Angeles.
    
    United Artists studio, which suffered a massive blow when its $40
million movie, ''Heaven's Gate,'' was withdrawn from distribution,
just caught another one on the chin: Woody Allen is leaving the
studio to join Orion Productions, which was formed by former UA
execs. ...A new book, ''Reagan the Man, the President,'' soon to be
published by Macmillan, was written by five distinguished New York
Times correspondents-Hedrick Smith, Adam Clymer, Leonard Silk, Robert
Lindsey and Richard Burt. The authors trace his career from actor and
New Deal Democrat to Republican president. ...Anyone who loves skiing
and celebrities will enjoy ''Sun Valley,'' written by 79-year old
Dorice Taylor, former publicist at the Idaho ski resort. She knew all
the VIPs who visited there, from Groucho Marx to the shah of Iran.
...And Herb Cohen's ''You Can Negotiate Anything'' has climbed to No.
5 on the best-seller list and Cohen just received a six-figure fee
for the paperback rights. Not bad for a first-time author.
    
    Pianist-singer Bobby Short was long on talent at Chicago's Park West
the other eve, where he thrilled two huge audiences in a benefit for
Wisdom Bridge Theater. The following late dinner (to raise additional
funds) at Maxim's was as superb as the performance. And thanks to
Richard Keer of Glenmore Distilleries for picking up the tab for the
dinner as another contribution to Wisdom Bridge, one of the artistic
delights of Chicago's regional theaters. ...Best suggestion for a
lasting memorial to the late John Lennon comes from reader James
Delaney. He recommends that the thousands of young people who poured
forth so much adulation, in life and death, for the man who sang
their songs now take a few minutes to write to their congressmen,
demanding enactment of federal handgun-control legislation. That
would be translating their grief into a positive action. And he urges
that the legislation be called ''The Lennon Amendment.''
    
    President Carter is leaving office by establishing a record-for
presidential Christmas cards. A total of 120,000 cards, wishing you
season's greetings from ''Jimmy and Rosalynn,'' have been ordered by
the White House. How presidential Christmas cards have grown in
number is indicated, according to the Wall Street Journal, by the
fact that Herbert Hoover ordered only 250. Incidentally, the
Democratic National Committee, not the government, picks up the tab
for the cards. ...Tom Bosley of TV's ''Happy Days'' selected his own
happy day in January. That's when he'll wed actress Patricia Carr.
    
    Chicago, the home of radio's soap operas, may rise again with soaps
for cable and pay TV. ABA Productions is filming a new series, ''33
Brompton Place'' with the cable and pay-TV market in mind. An
all-Chicago cast has been hired for the series, being written by Tek
Osborne and produced by Tony Finocchio and Bob Rubel. ...Former champ
Jake La Motta, hyping the movie of his life, ''The Raging Bull,''
reports he worked one full year with Robert DeNiro before a camera
turned. ''I never met a guy like DeNiro before,'' La Motta exclaimed
in admiration. ''First, he went into training like a fighter and he
boxed with me every day for months. Then he started talking to me and
getting my story down on tape. You know, he's better than a
psychiatrist. Now he knows me better than I do.'' That helps explain
why DeNiro gives such a magnificent performance in the movie.
...Newton Minow is serving as chairman of the selection committee for
Rhodes Scholarships in Illinois.
    
    Tip to theatergoers: You'll miss a splendid performance if you don't
get to see James Baldwin's ''Amen Corner'' at Chicago's World
Playhouse. Val Gray Ward alone is worth the price of admission.
...Maurice Rosenfield, co-producer of the Broadway smash, ''Barnum,''
is elated over the signing of Stacy Keach to play the lead in the
touring company. . . Second City, the nation's No. 1 improvisational
theater, observed its 21st birthday Tuesday with a midnight
performance for the Chicago theater community. ...And sign spotted on
a store door: ''Please open BEFORE Christmas!''
    ENDIT KUPCINET
    
nyt-12-18-80 0918
et
**********

a066  0643  18 Dec 80
PM-Khomeini-Universities, 460
Khomeini Calls His Country's Universities A Communist Stronghold
    BEIRUT, Lebanon (AP) - Iranian revolutionary leader Ayatollah
Ruhollah Khomeini today called his country's universities a communist
stronghold and declared they would remain closed because ''university
intellectuals'' were responsible for Iran's political unrest.
    In a speech broadcast by Tehran radio, Khomeini told thousands of
chanting clergymen and students that the nation's universities must be
improved.
    ''We don't mean that there should be none, but that they be for the
people and the country, not to serve the United States. Otherwise, it
is better not to have any,'' Khomeini said in an address at the
Husseinieh Jamaran religious center north of Tehran.
    The liberal arts departments of major universities have been closed
since late last year with only medical schools and other science
departments remaining open.
    The campuses have been the center of political activity by leftist
organizations such as the Marxist-Leninst Fedayeen and the
Islamic-oriented Mujahadin al Khalq. Kurdish separatists from western
Iran also used universities as a base.
    ''Isn't it better that this kind of university remained closed and
that Islam stays?'' Khomeini asked students and clergy who had come
from the holy city of Qom in central Iran.
    Khomeini spoke in the context of widening public conflict between
clergy-oriented militants and secular groups - including the leftists
- in recent weeks. Protests and counter-protests have spread at a
time when the three-month old war with Iraq has caused econiomic
hardships, blackouts and strict rationing of fuel.
    ''All the miseries and unfortunate events which have taken place
stem from the universities,'' Khomeini said. ''All the miseries were
started by those university intellectuals and specialists.''
    Khomeini specifically singled out the communists for criticism and
indicated he had no intention of reopening closed sections of the
universities.
    ''When the doors were open there was so much corruption,'' he said.
''It was the bunker of communists.''
    Khomeini charged that those who demanded the reopening of the school
were naive. ''Didn't you see the university was the center of
corruption in the claws of commmunists and guerrillas and other groups
causing dissent only a few months ago?''
    Khomeini conceded that there ''were some dedicated people in the
universities but only a very small number of them and the communists
would not let them do anything.''
    He added that ''if we open the universities, the same will happen
again. So stop writing and asking why the universities do not open.
This kind of university must not open.''
    The revolutionary patriarch was particularly critical of educational
leaders and professors for relying on foreign help.
    The state-run radio said that students, teachers, clergy and others
gathered at Tehran University today for a religious ceremony at the
university mosque after Khomeini canceled plans for nationwide
pro-clergy demonstrations and strikes.
    
ap-ny-12-18 0945EST
**********

a070  0709  18 Dec 80
PM-Iran-Iraq War, 1/2 7/80
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq repored today that its troops and
helicopter gunships turned back another Iranian attempt to break the
siege of the Iranian oil center of Abadan and killed 53 Iranian
troops.
    With the Persian Gulf war in its 88th day, both sides reported
long-range artillery exchanges, but no changes in the static
battlefront. Pope John Paul II made a new appeal for peace, and the
Palestine Liberation Organization was reported ready to launch another
diplomatic effort to end the war.
    Iraq said its forces also knocked out six tanks in repulsing the
overnight Iranian breakout attempt.
    Iran said Abadan's long-range artillery blasted the southern Iraqi
highway that links Iraq's Persian Gulf oil terminal at Fao with the
Iraqi port city of Basra on the northern tip of the Shatt al-Arab
waterway.
    Abadan is Iran's last major stronghold on the waterway.
    Iraq invaded Iran's Khuzistan Province in the first three weeks of
the war in an attempt to bring the entire waterway under Iraqi
control. But a two-month siege of Abadan and daily artillery and
helicopter gunship bombardment of its giant refining complex has
failed so far to bring surrender of the city.
    Eyewitness reports in the Lebanese press said the city's remaining
150,000 inhabitants have no gasoline for their cars because air raids
and fires stopped refining operations. But food and arms supplies
were being flown into the beleaguered city by helicopters from other
Iranian bases, the reports said.
    Iran's official Pars news agency said 10 Iraqi tanks and three
armored personnel carriers were demolished by helicopter gunship raids
near Abadan and around the Khuzistan capital of Ahwaz, 70 miles to
the north.
    Pars claimed 33 Iraqi troops were killed in the Abadan fighting and
in paratroop attacks against Iraqi positions in Iran's snow-covered
western highlands, 300 miles north of Abadan.
    Iraq conceded only 12 fatalities and claimed 19 Iranian soldiers
were killed in fresh fighting near Khuzistan's key highway junction at
Sunsangerd, 85 miles north of Abadan, and in the foothills of the
Zagros Mountains in western Iran.
    War claims could not be independently verified because reporters are
barred from battle zones. Western military analysts believe neither
country will be able to break the current standoff during the winter.
    At the Vatican, the pope called on Iraq and Iran ''to show real
readiness'' to reach a negotiated settlement.
    A senior official of the Palestine Liberation Organization said in a
newspaper interview published today that the PLO was undertaking a
fresh effort to end the war.
    ''The PLO is trying to unify the separate mediations of the
non-aligned and Islamic nations,'' Khaled Hassan, political adviser to
PLO chief Yasser Arafat told the Saudi Arabian newspaper Al Medina.
He did not elaborate.
    
ap-ny-12-18 1010EST
**********

a073  0727  18 Dec 80
PM-Hostages, 1st Ld, a044,310
Eds: New grafs 1-8 to update, including report Iranian message handed
over
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Prime Minister Mohammad Ali Rajai said today
the United States can win release of the 52 American hostages before
the Christmas holidays if Washington ''can give the necessary
guarantees,'' the official Iranian news agency reported.
    Rajai apparently referred to Iran's new message, which he said
outlined ''financial guarantees'' needed from the United States to
clear the way for release of the hostages who spent their 411th day in
captivity today.
    A spokesman for Rajai's office said the Iranian reply has been
prepared for relay to the United States by Algerian intermediaries,
but that he could not confirm that the message had been given to an
Algerian delegation waiting in Tehran.
    A report from Tehran by the American CBS network said that Rajai
handed the Algerian diplomats a briefcase today, presumably containing
the response Washington was waiting to receive.
    But the spokesman, reached by telephone from Beirut, said he was
unaware of Rajai handing over any answer to the Algerians. The
spokesman identified himself as Mr. Sadeghi of the prime minister's
public relations office.
    On Tuesday Rajai termed the message Iran's ''final reply'' and
indicated U.S. financial guarantees were needed to meet Iranian
conditions for release of the hostages. But he has never spelled out
exactly what guarantees Iran seeks and Washington officials were
waiting to see if Iran's latest position indicates a softening of the
original conditions set by the Iranian government.
    Among its conditions, Iran is demanding return to Iran of the wealth
of the late shah and his family and cancellation of all legal claims
against Iran pending in U.S. courts. The Carter administration has
said the the United States government cannot legally fulfill the
conditions.
    Rajai's latest statement came after a one-hour meeting with Sweden's
ambassador to Tehran, according to Pars news agency.
    ''Every measure: 3rd graf
    
ap-ny-12-18 1028EST
**********

a074  0729  18 Dec 80
PM-Iran Unrest, Insert, a022,50
BEIRUT, Lebanon Insert after 4th graf: Inserts Khomeini blames
universities for unrest, says they are communist stronghold
    Today, in a speech broadcast by Tehran radio, Khomeini said Iran's
universities were communist strongholds and sources of the unrest. He
declared the institutions' liberal arts divisions, which were shut
down late last year, would remain closed. Only the medical schools and
other science departments remained open.
    The home-front: 5th graf
    
ap-ny-12-18 1030EST
**********

n029  1031  18 Dec 80
BC-YAMANI
(BizDay)
By DOUGLAS MARTIN
c. 1980 N.Y. Times News Service
     NEW YORK - In the wake of this week's decision by the Organization
of Petroleum Exporting Countries to allow oil prices to increase by
roughly 10 percent, Saudi Arabia's oil minister, Ahmed Zaki Yamani,
warned Wednesday that prices could rise still further, to $50 a
barrel by next spring.
    Sheik Yamani's warning, which appeared in Weltwoche, a Zurich
weekly, was intended to persuade Western nations to use oil they are
keeping in storage, to reduce pressure on the oil market. This is a
refrain of the OPEC nations, which tend to believe also that their
power is enhanced if consuming nations are more dependent on them.
    In particular, Yamani was quoted as referring to a recent increase
in the U.S. strategic oil reserves, France's decision against
reducing its strategic stockpiles and Japan's policy of increasing
its floating reserves. He called these actions ''not good omens.''
    Oil analysts tended to disregard Yamani's remarks as predictable and
not relevant to the currently softening spot market for crude oil.
But they did agree that various pressures were building that could
result in a substantial increase in the price of oil products by this
summer. It is estimated that the latest OPEC increase by itself will
raise American gasoline prices by at least 5 cents.
    The analysts are worried that a gradual drawdown in world oil stocks
since the outbreak of the Iran-Iraq war in September could stimulate
the same sort of surge in prices on the spot market - where oil not
under contract is traded - that doubled oil prices in 1979 from $12,
to $26. The pattern at that time was for oil companies to buy crude
on the spot market, regardless of whether they needed it, in the
belief their ample inventories could only increase in price. Those
purchases pushed prices even higher.
    Even a mild drawdown in stocks, which are currently about 300
million barrels above normal, could ''trigger immediately a mad rush
for building stocks again,'' Walter J. Levy, the oil economist,
cautioned. And that, he said, would be ''an unmitigated disaster for
the world economic recovery.''
    Levy pointed out that of the current world inventories of crude oil,
set at slightly over five billion barrels, some 80 percent is needed
just to keep the world distribution system of pipelines, refineries
and other petroleum industry equipment functioning. Of the rest, he
said some 600 million barrels reflected normal seasonal buildups,
leaving only some 400 million barrels of so-called free stocks.
    
nyt-12-18-80 1332est
**********

a214  1130  18 Dec 80
BC-Hostage Negotiations,330
    PARIS (AP) - A new series of technical negotiations on the final
terms for release of the 52 Amran is expected to
open in London within the next few days, the French news agency Agence
France Presse reported Thursday.
    The report said the new talks, to be held among American, Iranian
and Algerian officials, would deal only with the technical
arrangements, since ''all questions of principle have been settled.''
It did not specify whether Americans and Iranians would meet face to
face for the first time at the proposed London meeting.
    A Paris-based law firm that handles Iranian legal interests in the
United States declined to confirm or deny the report.
    Citing unidentified Paris sources said to be in close touch with
both sides in the drawn-out negotiations, the report indicated the
United States has offered to help the Iranian authorities recover the
funds of the Pahlavi Foundation set up by the late Shah Mohammad Reza
Pahlavi.
    The foundation has investments estimated at $3 billion in American
and European enterprises. The Iranian authorities claim the money
belongs to the Iranian state, and return of the late shah's wealth is
one of four conditions Iran has set for release of the hostages.
    The report said American and Iranian officials, negotiating
indirectly through Algerian intermediaries, have agreed on most of the
details of a package deal for the hostages' release, including the
unfreezing of some $8 billion in Iranian government assets blocked in
the United States.
    The funds would be deposited with the Algerian Central Bank, plus an
additional $1 billion as surety for some 300 private lawsuits against
Iran which are pending before American courts, AFP said. Cancellation
of the court claims was another Iranian condition.
    The report said the package also would include delivery to Iran of
American military equipment ordered and partially paid for by the
Iranian government before the Nov. 4, 1979, seizure of the hostages at
the American Embassy in Tehran.
    
ap-ny-12-18 1430EST
**********

a223  1238  18 Dec 80
AM-Hostages,500
'Guarantees' Sought By Iranians
By NICOLAS B. TATRO
Associated Press Writer
    BEIRUT, Lebanon (AP) - Prime Minister Mohammad Ali Rajai said
Thursday the 52 American hostages could be home for Christmas if the
United States gives the ''necessary guarantees.'' And he said Iran's
final response in the negotiations would be dispatched to the United
States ''in the near future.''
    While the United States waited to find out what ''guarantees'' Iran
wanted to fulfill conditions for release of the hostages, Rajai said
that ''every measure to speed up the release of the hostages depends
on the U.S. government.''
    In Paris, the French news agency Agence France-Presse reported
Thursday that a new series of technical negotiations on final terms
for releasing the hostages is expected to open in London within the
next few days. The report, citing unidentified French sources, said
the negotiations would deal with technical arrangements for meeting
Iran's conditions since ''all questions of principle have been
settled.''
    Iran's official Pars news agency quoted Rajai as saying that the
United States ''can release the hostages before the Christmas holidays
if they can give the necessary guarantees.''
    Rajai did not disclose what guarantees Iran wanted, but they
presumably dealt with two of the Iranian conditions; return to Iran of
the wealth of the late shah and cancellation of claims against Iran
pending in U.S. courts.
    ''Our final reply to the explanations that the United States
requested has been prepared and will be sent to the United States in
the near future,'' Pars quoted Rajai as saying.
    A team of Algerian diplomats, acting as intermediaries in the
negotiatons, was in Tehran awaiting the official Iranian response but
a spokesman for Rajai's office said he could not confirm the reply
had been transmitted to them yet.
    The American network CBS reported that Rajai had handed the Algerian
diplomats a briefcase Thursday, believed to contain the Iranian
message.
    The hostages, seized by militants who stormed the U.S. Embassy in
Tehran on Nov. 4, 1979, spent their 411th day in captivity Thursday.
    In Washington, State Department spokesman John H. Trattner told
reporters that the United States is still in the dark about the latest
Iranian stance.
    Unlike the last time Iran transmitted documents, Trattner said, U.S.
officials have not received any advance indication from the
intermediaries as to the nature of Iran's position. ''We have had no
foreshadowing,'' he said.
    Iran's Parliament on Nov. 2 set four conditions for release of the
Americans - return of the wealth of the late shah and his family,
dropping of legal claims against Iran, freeing of Iranian assets
frozen in U.S. banks and a pledge that America would not interfere in
Iranian affairs.
    The first two conditions were the major stumbling blocks and the
Carter administration has said that the U.S. government cannot legally
return wealth that the shah or his family might have taken out of
Iran or quash pending lawsuits by those who claim they suffered
financial damage when Islamic revolutionaries drove the shah from this
throne.
    
ap-ny-12-18 1538EST
**********

a224  1239  18 Dec 80
AM-Jewish Editor Executed,75
URGENT
    TEL AVIV, Israel (AP) - Iranian authorities have executed the Jewish
editor of the English-language Tehran Journal on charges of spying
for the United States, Israel Television reported Thursday.
    Simon Farzam, 68, was reportedly arrested last February, after
student militants at the American Embassy in Tehran accused him of
relaying information to U.S. diplomats before the embassy seizure.
    According to the state television, Farzam was executed Tuesday.
    
ap-ny-12-18 1541EST
**********

n047  1313  18 Dec 80
BC-PIKE-WALTER
(Newhouse 009)
Pike column, suggested for Sunday use
By OTIS PIKE
Newhouse News Service
    MELBOURNE, Fla. - Exactly one week before Christmas, the Last Love
and I were plodding slowly down the Intracoastal Waterway seeking,
and finding, some warmth. The Last Love, it should be mentioned, is a
slow boat and not a wife.
    The wife, who is much faster, is not content with our pace on the
Last Love and had moved on ahead. Besides, as the song goes, she has
a love of her own.
    My wife loves Walter Cronkite. No matter what muse sits upon my
shoulder as I write, no matter how much research has gone into a
column or how nicely the words flow, she can take it or leave it. She
can't leave Walter Cronkite.
    There are a couple of things I know more about than Walter Cronkite
does: Congress, where I labored for 18 years, for one; and where
little-neck clams and beach plums hide under the waters and along the
shores of Peconic Bay, for another. The wife is unimpressed.
    If a very knowledgeable columnist writes that it has been a sorry
Congress and Walter Cronkite says it has been a very productive
Congress, you know whom she's going to believe.
    At a certain time in the evening, five days a week, she demands
control of the tube. ''And now,'' she says with finality, ''the
truth.'' And on comes Walter.
    Walter Cronkite came to mind yesterday, as the Last Love ambled past
the largest building in the world, the monstrous NASA structure where
our space vehicles are assembled. He led our family into the space
age. Shorty Powers may have been the voice of Mission Control in
those exciting years, but Walter Cronkite's was the voice that
introduced him.
    Walter sat up with us all night when a giant step was taken for
mankind, so it was only natural that he would come to mind as the
NASA building disappeared into the haze over the stern.
    Last night, at a dock in this blooming Sun Belt city (where the
dockmaster announced proudly that one new family moves in every six
hours), there was Walter again.
    The voice was a little hoarse, as though it had been working too
long and too hard, but the sounds that it made surely did sound like
the truth. He talked about the perils of Chrysler, and the
possibility of its rapid demise. He talked of a prime rate at a
record high of 21 percent and the possibility of economic collapse.
He talked of messages between Iran and the United States, carried by
Algerians.
    When it was all over, even after he had told us that that was the
way it was, he reminded us that it was the 410th day that 50 American
diplomatic employees, one American embassy and a nation had been held
hostage.
    My wife loves Walter Cronkite, and of course I'm jealous. Every
writer who wishes more people read him, or speaker who wishes more
people listened to his voice, is jealous. We seize upon little
tidbits of gossip - that he is occasionally less than cooperative
with his associates, or is imperious with his underlings. The wife is
indifferent to such puny evidences of mortality. Why should an
emperor not be a little imperious? Walter Cronkite tells her the
truth.
    There is a rumor that he and my wife are going to stop meeting soon.
If there is any truth in it, it won't be because she has tired of
him. On balance, despite the jealousy, I'm sorry their affair is
ending.
    When there are several stories to choose from on any given day, he
leads off with the one that will mean the most next week, next month,
next year. He ends up, stubbornly, reminding us of something we
perhaps would rather forget - the hostages.
    Now there is talk that they will be home for Christmas. There was
the same talk last Election Day, last Easter, last Christmas.
Whenever they come, my wife will thank Walter Cronkite for having
helped. I will be jealous, but not so jealous I wouldn't love to hear
his hoarse voice welcoming them home.
    Merry Christmas, Walter - and thanks for so much truth over so many
years. BJ END PIKE
    
nyt-12-18-80 1614est
**********

a230  1338  18 Dec 80
AM-Hostages, SUB, a223,310
BEIRUT, Lebanon, to update with State Department and Muskie denying
French reports of hostage deal, SUB grafs 4-10: Iran's official ...
captivity Thursday.
    U.S. Secretray of State Edmund S. Muskie and the State Department
quickly denied the AFP report.
    ''I know of no such meeting,'' Muskie told reporters at the United
Nations after a luncheon meeting with Secretary-General Kurt Waldheim.
In Washington, State Department spokeswoman Susan Pittman said:
''There is no foundation to that story.''
    Iran's official Pars news gency quoted Rajai as saying that the
United States ''can release the hostages before the Christmas holidays
if they can give the necessary guarantees.''
    Rajai did not disclose what guarantees Iran wanted, but they
presumably dealt with two of the Iranian conditions; return to Iran of
the wealth of the late shah and cancellation of claims against Iran
pending in U.S. courts.
    ''Our final reply to the explanations that the United States
requested has been prepared and will be sent to the United States in
the near future,'' Pars quoted Rajai as saying.
    A team of Algerian diplomats, acting as intermediaries in the
negotiatons, was in Tehran awaiting the official Iranian response but
a spokesman for Rajai's office said he could not confirm the reply
had been transmitted to them yet.
    The American network CBS reported that Rajai had handed the Algerian
diplomats a briefcase Thursday, believed to contain the Iranian
message.
    The hostages, seized by militants who stormed the U.S. Embassy in
Tehran on Nov. 4, 1979, spent their 411th day in captivity Thursday.
    Muskie told reporters he was waiting for the Iranian message and
''until we get the Iranian response, it's impossible to characterize
developments.''
    Muskie was asked whether he was more ''hopeful'' now than a week ago
about chances for release of the Americans. ''I dropped that word
from my Iranian lexicon,'' he replied.
    In Washington, 10th graf
    
ap-ny-12-18 1640EST
**********

a236  1435  18 Dec 80
AM-Iran-Khomeini,Bjt,440
Khomeini Says Universities Are Source of Strife
    BEIRUT, Lebanon (AP) - Iranian spiritual leader Ayatollah Ruhollah
Khomeini on Thursday called Iran's universities strongholds of
communism, blamed them for fomenting internal strife, and declared
they should remain closed.
    Khomeini's broadcast speech to students and clergy came at a time of
growing unrest stemming from the political power struggle between
moderate supporters of President Abolhassan Bani-Sadr and
clergy-oriented supporters of Prrepublican Party.
    The powerful religious leader spoke at religious ceremony at the
university mosque - a day of unity for clergy and students. The day
also commemorated the assassination of an Iranian theology professor
last year by the anti-clerical organization called Forgan.
    ''We don't mean that there should be (no universities) but that they
be for the people and the country, not to serve the United States.
Otherwise it is better not to have any,'' Khomeini said to the
chanting crowd.
    The liberal arts sections in most of Iran's universities have been
closed since late last year with only medical schools and other
science departments allowed to remain open.
    The campuses had been theaters of political activity by various
leftist organizations such as the Marxist-Leninist Fedayeen and the
Islamic-oriented Mujahedeen al Khalq.
    ''Isn't it better that this kind of university remain closed and
that Islam stay?'' the patriarch of the Islamic revolution asked his
listeners - including clergy who had come from the holy city of Qom in
central Iran.
    Iran is suffering the economic hardships of its 3-month-old war with
Iraq. The fighting, reportedly doing heavy damage to Iran's vital oil
industry, has  eries and unfortunate events which have taken place
stem from the universities,'' Khomeini said, ''all the miseries were
started by those university intellectuals and specialists.''
    Khomeini earlier had warned of ''devilish'' plots to separate the
people from the clergy and the army.
    Khomeini argued the only way to alleviate the dangers of
''corruption'' in the universities was to keep those sections closed
and said those demanding the reopening of these schools were
''naive.''
    He conceded there were some dedicated people in the universities but
only a very small number of them and said the communists would not
let them do anything.
    He added that if the universities reopened, the communists, the main
targets of his attack, would find ways of interfering in university
activities.
    ''Didn't you see the university was the center of corruption in the
claws of communists and guerrillas and other groups causing dissent
only a few months ago?'' Khomeini asked.
    
ap-ny-12-18 1736EST
**********

a238  1446  18 Dec 80
AM-Editor,290
Eds: This serves as a 1st Ld - Writethru to AM-Jewish Editor
Executed, a224
    TEL AVIV, Israel (AP) - Israel television broadcast a report
Thursday that the Iranian government executed Simon Farzami, the
Jewish editor of the English-language Tehran Journal, on charges of
spying for the United States.
    Menashe Amir, who monitors foreign broadcasts for Israeli state
radio and television, said in a telephone interview he heard a report
of the execution on Radio Monte Carlo's Arabic-language broadcast and
then relayed the news to Israel television.
    The Iranian government has not announced a formal death sentence or
made public any details of a trial, and the Israeli Foreign Ministry
refused comment on the report.
    In Washington, the State Department said it had no independent
confirmation of the report and could not comment.
    Amir said Farzami was arrested last February after militants at the
U.S. Embassy in Tehran produced documents linking him with the U.S.
press attache. He said Farzami was executed Tuesday.
    ''The students published documents of connections that other Iranian
journalists had with the Americans, but he was the only one
executed,'' Amir said.
    If the execution has taken place, Farzami, 68, would be the seventh
Jew executed by the revolutionary regime of Ayatollah Ruhollah
Khomeini, according to Israeli experts on Iran. They said he would be
the first killed for spying for America.
    They said the first execution of a Jew in Iran occurred in May 1979
when Habib Elghanian, a multimillionaire businessman and leader of
the Tehran Jewish community, was shot by a firing squad after being
found guilty by a revolutionary court of being a Zionist and making
contacts with Israel.
    Amir said Farzami was fluent in French and English and was born in
Isfahan, Iran. Farzami was not active in Jewish affairs, he added.
    
ap-ny-12-18 1747EST
**********

n061  1503  18 Dec 80
AM-IRAN
Iran's New Word on Hostages Apparently Sent; Aides Silent on Terms
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN - The new Iranian conditions for the release of the 52
American Embassy hostages were believed to have been delivered to
Algerian intermediaries here Thursday, but both Iranian and Algerian
officials maintained their steadfast silence on the terms.
    Prime Minister Mohammed Ali Rajai, however, said that ''the United
States can release the hostages before the Christmas holidays if they
can give the necessary guarantees.''
    Speaking after he had made a courtesy visit with the Swedish
ambassador Thursday morning, the prime minister said that ''our final
reply to the explanations that the United States has requested has
been prepared and will be sent to the United States in the near
future.
    ''After that, every measure to speed up the release of the hostages
depends on the U.S. government,'' he added.
    On Monday, Rajai received approval from Ayatollah Ruhollah Khomeini
for what he termed a ''final answer'' to the latest American response
to the four conditions set on Nov. 2 by the parliament for the
release of the hostages, now in their 14th month of captivity.
    Rajai said the Iranians had ''only asked for financial guarantees''
from the United States. There was no further explanation of what the
term guarantees - a new word in the language used in the hostage
discussions - meant.
    The major stumbling blocks in the discussions so far are understood
to be Iranian demands for the return of Iranian assets in the United
States, frozen by President Carter after the seizure of the embassy
and now the object of numerous lawsuits by companies with contracts
in pre-revolutionary Iran, and the return of the wealth of the late
Shah Mohammad Reza Pahlavi and his family.
    Thursday afternoon, Ahmed Azzizi, an aide to the prime minister,
went to the Algerian Embassy where the three Algerian intermediaries
had gathered. He was carrying a brown leather attache case.
    Emerging from the embassy after a few minutes, Azizzi, a bearded man
in a combat jacket who has been described in official announcements
over the past few days as the government's ''director of hostage
affairs,'' said only that he could not say anything Thursday.
    The Algerian intermediaries - Ambassador to Washington Redha Malek,
Ambassador to Tehran Abdel Karim Ghareib and the central bank
director, Mohammed Alasghir - remained in the embassy into. In the first known reference by
Iran to Afghan volunteers, Pars described the funeral in the western
town of Ilam of a ''martyred Afghan brother in the fighting against
the Iraqi infidels.''
    The Kuwaiti newspaper Al Watan reported last week that 5,000 Afghans
had joined the ranks of Iranian forces in exchange for an Iranian
pledge to send volunteers to fight against Soviet troops in
Afghanistan once the war with Iraq is over. Kuwait has sided with Iraq
in the war, which entered its 90th day Saturday.
    Some 85,000 Soviet soldiers entered Afghanistan last December to
help that country's Marxist government in its continuing battle
against Moslem rebels.
    Pars also announced that Iranian President Abolhassan Bani-Sadr had
returned to his tour of the front after a meeting of the war council
in Tehran, called by revolutionary leader Ayatollah Ruhollah
Khomeini.
    The Tehran Radio broadcast said 20 Iraqi soldiers were killed in the
fighting at Susangerd, a strategic highway town near Iran's eastern
border that has been under siege for weeks.
    An Iranian war communique broadcast by Tehran Radio claimed Iranian
forces killed 180 Iraqi troops in scattered battles in Iran's
Khuzistan province and paratrooper battles in the Zagros Mountains.
    Baghdad broadcasts said Iraqi forces killed 200 Iranians at
Sar-e-Pol-Zahab, downed an Iranian fighter plane at Mehran in central
Iran and sank an Iranian vessel in the disputed Shatt al-Arab
waterway. It said 36 Iraqis were lost in the battles along the
300-mile front.
    Iraq also claimed it downed three U.S.-made Iranian jets in an air
raid on Iraq's northern oilfields at Kirkuk, which feed pipelines to
Mediterranean terminals in Turkey and Syria.
    Other Iraqi communiques said that 42 Iranian soldiers were killed in
fighting around the Iranian oil-refining city of Abadan Friday night
and Saturday and that a large oil depot was destroyed.
    Iran reported only ''sporadic exchanges of artillery fire'' around
Abadan.
    The claims could not be independently verified because foreign
reporters are barred from the battlefields.
    
ap-ny-12-20 1805EST
**********

a246  1506  20 Dec 80
AM-Iran-Hostages, 1st Add, A216,90
Eds: Updates with Algiers meetins
UNDATED: the hostages.
    Algerian President Chadli Bendjedid met in Algiers with one of the
envoys who returned from Tehran Friday with Iran's latest response,
Algerian officials said, without disclosing details of the talks.
    The envoys - Central Bank director Mohamed Seghir Mousstefai and
Abelkrim Ghraieb and Redha Malek, Algeria's ambassadors to Iran and
the United States respectively, met earlier in the day with officials
at the Algerian Foreign Ministry. It was not known if they planned to
go to Washington or if the United States would send a delegation to
Algiers to discuss the Iranian response.
    
ap-ny-12-20 1807EST
**********

a251  1527  20 Dec 80
AM-Light Up,300
Americans Urged To Burn Christmas Eve Lights For Hostages
By TERRY SOWKA
Associated Press Writer
    MILWAUKEE (AP) - Radio stations nationwide, spurred on by a
Milwaukee station, are urging Americans to burn lights for 417 seconds
on Christmas Eve - a second for each day the 52 Americans will have
been held hostage in Iran by that date.
    Terrell Metheny Jr., vice president and general manager of
Milwaukee's WBCS, said he also will cable President Carter asking him
to join the ''Light Up America'' vigil by lighting the national
Christmas tree at 10 p.m. EDT Christmas Eve for 6 minute
Bust It
    
ap-ny-12-20 1828EST
**********

a253  1540  20 Dec 80
AM-Light Up,350
Stations Urge Light Up For Hostages
By TERRY SOWKA
Associated Press Writer
    MILWAUKEE (AP) - Radio stations nationwide, spurred on by a
Milwaukee station, are urging Americans to burn lights for 417 seconds
on Christmas Eve - a second for each day the 52 Americans will have
been held hostage in Iran by that date.
    J. Paul Huddleston, news director of Milwaukee's WBCS, said the
station plans to wire President Carter asking him to join the ''Light
Up America'' vigil by lighting the national Christmas tree at 10 p.m.
EST Christmas Eve for 6 minutes, 57 seconds.
    Carter announced earlier the tree would remain unlit for the second
year as a symbol of concern for the Americans held hostage in Iran
since militants stormed the U.S. Embassy in Tehran on Nov. 4, 1979.
    The station launched the campaign a month ago, urging Americans, at
the same hour, to stand outside for 417 seconds Christmas Eve with a
lit candle, flashlight or porch light.
    The station has since been contacted by stations in New York, Texas,
Florida and Oregon that heard about the vigil through the National
Radio Advertising Board and broadcasting publications.
    Advertisements boosting the vigil are available through the
advertising board, WBCS officials said, carrying such messages as
''We're going to light up because we're fed up.''
    Bob McKay, program director for WBCS, said that CBS and NBC were
urging their affiliates to participate, and that several
organizations, including the Washington, D.C., broadcasters group and
state broadcasting associations in Ohio, Arkansas and Utah, were
asking members to take part.
    WBCS had no estimate of how many stations would ask their listeners
to participate in the vigil.
    Richard Hermening of Cudahy, Wis., the father of hostage Kevin
Hermening, has tape recorded a message that says, ''Christmas is a
time of new light, so let's light up for our hostages in Iran to show
them we still care.''
    Hermening's son, a Marine sergeant, is the youngest of the hostages
and was visited by his mother, Barbara Timm, at the U.S. Embassy in
Tehran last spring.
    ''Our light will be that ray of hope that Iran will see more clearly
we care about our people and want them home,'' he said.
    
ap-ny-12-20 1841EST
**********

a260  1609  20 Dec 80
AM-Iran-Oil,440
By The Associated Press
    Iran is exporting oil without difficulty through the Persian Gulf
and selling it to allies despite its 90-day war with Iraq, Iran's
deputy minister of oil said Saturday. He said Iraqi oil production had
ceased.
    Meanwhile, diplomatic sources in Damascus, the Syrian capital,
reported that a series of explosions last week in Iraq's oil center of
Kirkuk had brought Iraqi crude oil supplies - exported via Syria - to
a total halt. There was no immediate comment from Iraq.
    Hasan Sadat, who headed Iran's delegation to last week's meeting of
the Organization of Petroleum Exporting Countries in Indonesia, told
reporters in Tehran Iran's first priority in resuming oil exports was
to look after its friends ''who have helped us during the war.''
    Sadat said the second priority was to supply countries that did not
participate in the U.S.-sponsored economic embargo against Iran
following the seizure of the 52 U.S. hostages 413 days ago.
    Sadat mentioned no countries by name and refused to disclose how
much oil Iran was exporting. 
    Mideast analysts in Beirut have said Iran was getting out some
exports through the Persian Gulf oil terminals on the islands of
Kharg, 120 miles southeast of the embattled Shatt al-Arab estuary, and
Levan, 400 miles south of the waterway.
    The analysts said there were no firm estimates of Iranian exports
but they were believed to be in the vicinity of 100,000 barrels daily
compared to pre-war figures of 700,000 to 900,000 barrels a day.
    Asked which countries Iran might be supplying at this time, the
analysts named North Korea as a country that backed Iran in the war
and might now be receiving Iranian oil.
    They said countries which had not joined the U.S.-led boycott and
might be receiving Iranian supplies could include India, Taiwan, the
Philippines and Socialist Bloc countries like Romania and East
Germany. An East German tanker recently loaded up Iranian crude at a
Gulf oil facility, the analysts said.
    Meanwhile, diplomatic sources said the explosions occurred last
Tuesday and Wednesday, and Iraq no was longer transporting oil to the
Syrian terminal at Banias. Last week, sources in the Syrian capital
reported technical problems may have stopped the flow of oil through a
second pipeline to the Mediterranean port of Dortvol in Turkey.
    Iraq had been pumping an average 300,000 barrels a day through
Banias and 400,000 barrels a day through the Turkish port of Dortvol
after its 3.2 million barrel-a-day exports were interrupted because of
the war.
    On Thursday, Iran claimed to strike a heavy blow to Iraq's southern
oil installations with an artillery bombardment that cut the highway
linking Iraq's main oil terminal with the rest of the country.
    
ap-ny-12-20 1911EST
**********

a262  1621  20 Dec 80
AM-Shariati,320
URGENT
Shariarti Acquitted Of Killing Student
By ANDREW ROSENTHAL
Associated Press Writer
    DENVER (AP) - A 21-year-old Iranian student was acquitted Saturday
of murder and assault charges stemming from the shooting death of a
teen-ager and the wounding of two others during a wave of anti-Iranian
sentiment last year.
    Upon hearing the verdict, Afshin Shariati leaped to his feet and
embraced defense attorney Scott Robinson. The other defense attorney,
Walter Gerash, burst into tears and buried his face in his hands. In
the gallery Shariati's American wife, Toni, also wept.
    The parents of 15-year-old Paul Moritzky, the youth killed in the
incident, remained impassive.
    Morizky was killed and two others wounded by Shariati after they
smashed a window in his apartment with baseball bats in an apparent
attempt to seek revenge for the taking of American hostages in Iran.
    Shariati admitted shooting the boys but said he did it to protect
his home from what he thought was a bomb attack.
    He was charged with second-degree murder and with attempted
second-degree murder and assault. The jury acquitted Shariati on all
charges.
    Shariati declined to comment on the verdict as he left the
courtroom, saying only that he wanted to ''thank the jurors.''
    Shariati, a student at Arapaho Community College near Denver, was
accused of shooting Moritzky knowingly and recklessly - but without
planning. Shariati admitted he shot Moritzky with a .30-caliber deer
rifle on the night of Nov. 11, 1979, one week after the seizure of the
U.S. Embassy in Tehran.
    Police said Moritzky was among a group of teen-agers who left a
Saturday night high-school party to ''hassle'' Iranians. Testimony
from police and members of the group showed they armed themselves with
baseball bats and ax handles.
    Michael Lopez, one of the two teen-agers wounded in the incident,
described during the trial how he, Moritzky and Steve Roane stood
outside Shariati's window. He said said he and the two others smashed
their bats through Shariati's window.
    
ap-ny-12-20 1922EST
**********

a268  1653  20 Dec 80
AM-Pope-Saudi,260
Pope Meets With Saudi Foreign Minister
    VATICAN CITY (AP) - Pope John Paul II and Saudi Arabia's Foreign
Minister met privately Saturday and discussed Mideast problems,
including the Palestinian issue and the status of Jerusalem, according
to a statement from the Vatican.
    The pontiff met for 45 minutes with Prince Saud al-Faisal in the
first audience granted by a pope to a member of the Saudi royal
family.
    A Vatican statement said they reviewed the world situation with
particular emphasis on the Afghan crisis, the Iraq-Iran war and the
question of the Palestinians.
    ''They stressed the necessity to contribute to peaceful solutions of
the problems on the basis of equality,'' the statement said.
    The Saudi minister pointed out that Israel had annexed Jerusalem in
August in violation of U.N. resolutions, the statement said.
    The pope referred to the Vatican's official paper of June 30, which
warned that ''any unilateral act tending to modify the status of the
Holy City would be very serious'' and called for safeguards enforced
by an international body to guarantee religious rights of Jews,
Moslems and Christians in Jerusalem, a holy city to the three faiths.
    Saud also conferred with Italian Premier Arnaldo Forlani on the
second day of his two-day official visit to Italy.
    After the meeting, Italian officials reported that Saud accepted
Italy's request to revive the 100,000 barrel a day oil contract that
was suspended in December 1979 because of unfavorable publicity over a
commission Italian oil officials allegedly paid to Saudi officials.
    Saudi Arabia provides about 20 percent of Italy's annual crude oil
needs.
    
ap-ny-12-20 1954EST
**********

n074  1700  20 Dec 80
AM-IRAN-U.S. Sub-16thgraf a036,a037
NYT WASHINGTON: Sub following for 16thgraf, fixing figure:
    Carter has already said that the United States would be willing to
unfreeze the assets, but there are more than 300 court cases pending
now by private American individuals and companies making claims on
those assets. The United States has told Iran that there are ways of
trying to settle those claims consistent with American and
international law, but it cannot simply turn the assets over to
Algeria as Iran's agent as Iran seems to demand in its latest message.
    The Iranians have reportedly, etc. picking up 17thgraf
    
nyt-12-20-80 2001est
**********

a284  1816  20 Dec 80
AM-US-Hostages,300
Administration Considers Deferring Hostage Discussions to Reagan
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - The Carter administration, frustrated in its
efforts to gain the release of the American hostages in Iran, is
considering deferral of further negotiations to the Reagan
administration, a knowledgeable U.S. official said Saturday night.
    But the official also told The Associated Press that a more likely
option was to keep pressing for a settlement that would end the
captivity of the 52 Americans who have been held for 413 days.
    ''With a month left, you keep trying,'' said the official who asked
not to be named.
    Secretary of State Edmund S. Muskie met Saturday with his deputy,
Warren Christopher, who is directly in charge of the protracted
negotiations. Then, Christopher met with members of his team,
including Harold Saunders, the assistant secretary for the Near East,
and Roberts Owen, the department's chief lawyer.
    The subject of their deliberations was Iran's latest message,
received on Friday, that includes demands that Iran's assets in the
United States, frozen by President Carter more than a year ago, be
handed over to the Algerian Central Bank for safekeeping and that the
United States offer assurances of help in obtaining the return of the
late shah of Iran's wealth. Algeria is mediating the indirect
negotiations.
    The terms presented ''serious procedural problems,'' said the U.S.
official, who is intimately involved with the negotiations.
    He said no decision had yet been made on whether the United States
would respond to Iran's terms.
    Officials here were extremely pessimistic that the hostages would
return home by Christmas. John H. Trattner, the State Department
spokesman, emphasized the point Friday when he said the United Sttates
was trying to arrange a Christmas observance for the hostages in
Tehran.
    
ap-ny-12-20 2117EST
**********

n514  2022  20 Dec 80
BC-AQUINO-5thadd-12-21
    x x x FRIENDS AND RELATIVES.
     ''People resent him (Marcos). But they really hate her guts,'' says
one former American official.
     Marcos, who was a millionaire before he became president, is widely
reputed to be the richest head of state in Asia. ''There always has
been government corruption in the Philippines,'' says the same
American official. ''But Marcos and Imelda are corrupt beyond
belief.''
     As an example, he says that Marcos, who as president can issue laws
by decree, ordered import duties on all filters for cigarettes. He
made one exception: on filters imported by a relative of his who owns
a cigarette company.
     One report by a Filipino university instructor now living in the
United States estimated that the ''Marcos Octopus,'' as it is known,
either owns or controls at least 900 companies in the Philippines,
ranging from shipping and real estate to gambling casinos,
newspapers, and television stations.
     Aquino is talking about whether his country, where the American
government is seen as supporting a corrupt and unpopular regime,
could ever become another Iran, where America supported a corrupt and
unpopular regime, blinded itself to a growing opposition movement,
and wound up manipulated by the angry new rulers of its former ally
and instrument. Aquino doubts a direct replay of what happened
between the United States and Iran (The United States did not install
Marcos as it did the shah), but he warns that peril lies ahead for
any American administration that appears flagrant in bolstering the
dictator's regime.
     ''This human rights thing must be a policy,'' he says. ''There are
restraints to this policy. Global interests. But you do not have to
shower them (the right-wing dictators) with love. In other words, you
tell them we are not in agreement with this. ...Torture. No
elections. No free press. No free judiciary. Okay. Say that and keep
relations formal. I do not say you should cut off relations, but it
should be formal. Don't go out of your way to receive them in the
White House and give them a banquet. And when they ask for $l00
million, don't give them $l06 million. That's going overboard. You're
giving them the wrong signals.
    ''In my particular instance,'' Aquino says, ''what are we asking
from the United States? Just stay out of our internal problem. Do not
prop up the dictatorship with money. That's all we're asking. As I
told our people, it must be the Filipino people that decide. If they
want freedom, they must fight for it, but do not let America arm the
dictator and make our struvgle harfer. Inasmuch as we don't want
America to help us, don't help the other guy.
    ''All that we want to see is that America will be consistent in
upholding human rights. There was always this kind of feeling toward
America, this good will,'' Aquino says. ''And when we went under the
Japanese, American boys came in and liberated us. And when we were
liberated from the Japanese, America came through with its promise
(of independence). And America didn't profit. Maybe some
multinationals did. But after the war, America came back and
rehabilitated us, gave us millions. And while Spain gave us our
religion, America gave us our democracy. Universal education. In
other words, we are all speaking English now. So for 60 years you
gave us this legacy, elections every two years, democracy. It may not
be perfect, but it is not perfect in your country, either.
    ''And don't forget,'' he says, ''more good will comes from the fact
that there are about two million Filipinos in America, enjoying
America, sending money back home, so you could imagine. ... It is a
special, unique relationship. America was never kicked out of the
Philippines, unlike England, France, other colonizers in Africa and
Asia. No, in our case you said, 'You are free.' So there is that
basic good will.
     ''Suppose America sends arms and bullets and napalm to Marcos,''
Aquino says. ''Suppose the people of the Philippines now will assert
their right for freedom. And suppose Marcos uses those guns, bullets,
and napalm on the Filipino freedom fighters. And suppose that Marcos
goes down. Now what happens after that?
    ''America will have to be tarred with all the sins of Marcos. That's
what we don't want. Now these young (Filipinos) are no longer
nostalgic. The good will is there, but a demagogue could turn this
around overnight and say, Who killed your boys? Who killed your sons?
Who burned your villages? American bullets. American napalm. American
this or that. Sure, they hate Marcos, but when Marcos goes down the
tube, the residual hatred will go on his supporter. Human rights is
to America's personal interest. In the long run, when you bed with a
repressive regime, you wound the national soul.''
    Aquino recounts an anecdote about the message one Filipino national
hero gave his followers when confronted with demands for revolution.
    (MORE)
    
nyt-12-20-80 2323est
**********

n522  2131  20 Dec 80
BC-HAIG-1stadd-12-21
    X X X RIGHT TO EXIST.
    ''One must be careful in the use of the term PLO,'' Haig went on.
''The PLO is an organization made of elements with various interests.
Some are just and responsible, while others are obviously dominated
by the East, financially as well as ideologically.''
    On other points, Haig, in his convention speech or in the French
interview, said:
    - ''I do not think the recent past justifies the resumption of
compulsory military service. But events and the influence of certain
'master ideologues' could re-create in America the conditions which
forced President Nixon to interrupt the draft. As I often say, 'There
is a Jane Fonda on every doorstep.'''
    - ''(The future) will require a leadership that recognizes the days
of our sterile involvement in Southeast Asia are over. A leadership
that also recognizes that the post-Vietnam syndrome that left us
mesmerized and pulverized must also be over.''
    - ''We cannot seek, however, to create mirror images of the United
States in every developing area throughout the world. You know, it
neither serves the purpose of social justice nor the vital interests
of America to pursue policies under the rubric of human rights which
have the practical consequence of driving authoritarian regimes,
traditionally friendly to the West, into totalitarian models where
they will remain in a state of permanent animosity to the American
people and our interests.''
    - ''America can no longer move in and out of global crisis
situations and bring about outcomes that meet the collective
interests of the free world. I reminded our friends in Europe that
the days are gone when they could sit on the sidelines and
alternately carp or support America alone for the burdens of their
freedom. ...''
    Such expressions of views, of course, tell one little about what
Haig and Reagan will do about the Iranian hostage crisis, the
Iran-Iraq war's impact on oil supplies, a Soviet invasion of Poland
or the situations in El Salvador or Nicaragua.
    An article Haig wrote in the current Washington Quarterly, however,
gives some hint of how he would approach these problems as secretary
of state.
    He would want to be delegated considerable authority, including
responsibility for the minutiae of his department. He would want
''considerable voice'' in selection of his subordinates. To achieve
high departmental morale, he would draw on the expertise, talents and
skills of the current bureaucracy. He would select new subordinates
on the basis of ''talent, competence and experience.''
    ENDIT OSTER
    
nyt-12-21-80 0032est
**********

a002  0109  21 Dec 80
AM-Iran-Hostages, 1st Ld, a216,470
URGENT
Eds: Negotiator says US asked for $19 billion; hostages could be
released in 24 hours after demands are met
By The Associated Press
    The head of Iran's government commission negotiating release of the
52 U.S. hostages said Sunday that Iran had asked the United States to
deposit about $19 billion in an Algerian bank before the captives are
freed. He said they were in good health and could be released within
24 hours after America met Iran's demands.
    The $19 billion figure, disclosed by Iran's Executive Affairs
Minister Behzad Nabavi at a news conference in Tehran, was the first
time a figure had been mentioned on financial demands being made
before the captives could be freed.
    Nabavi said the overall $19 billion figure represented an Iranian
demand for a deposit of about $9 billion to cover Iranian assets
frozen in U.S. banks after the hostages were seized and $10 billion to
cover the wealth of the shah.
    Iran has asked the United States to deposit financial guarantees
with Algeria relating to its demands. Algeria is acting as an
intermediary in hostage negotiations, at Iran's request.
    On Saturday, Iranian Prime Minister Mohammad Ali Rajai said the
demand for returning the late shah's wealth was the only potential
problem among Iranian terms for the hostages' release.
    Nabavi said the hostages would be released within 24 hours after the
U.S. government accepted Iranian conditions for their release and
that they could leave ''by bus or by plane, it's up to the U.S., and
they should pay for it.''
    Asked what would happen if the United States did not accept all of
the Iranian demands, including the requests for financial deposits in
Algeria's Central Bank, Nabavi indicated the government would consult
with the Iranian Parliament, the Majlis, and perhaps with the Iranian
Islamic courts.
    Navabi said the hostages were all in good health and that the
government had ordered a change in their location.
    He gave no details as to the circumstance of their present
whereabouts except to say ''As a matter of fact the hostages are now
in very beautiful hotels and are provided with all necessary
services.'' The word ''hotel'' in Farsi, the Iranian language, can
mean simply good accomodations in a private home.
    The Iranian government was considering the possibility of
interviewing ''the hostages'' on state television Christmas night, he
said, without specifying whether he meant all 52 captives or only
some of them.
    Nabavi said the interviews would be conducted by the Iranian
television network and that foreign reporters would not be allowed to
take part.
    In an interview broadcast Saturday on Iranian state radio, Prime
Minister Rajai said Iran had ''no precise information about the exact
amount'' of the wealth of the late Shah Mohammad Reza Pahlavi. He
fled Iran in January 1979 during the revolution and died at his Cairo
home-in-exile last summer.
    ''Therefore, we, 3rd graf pvs
    
ap-ny-12-21 0410EST
**********

a004  0120  21 Dec 80
BC-Iran Chronology, 38 Takes,450-15,750
By The Associated Press
    Here is a day-by-day chronology of the U.S. hostage crisis in Iran:
    Day 1, Nov. 4 - Iranian militants seize the U.S. Embassy in Tehran
and take 98 persons hostage. They demand the United States return the
deposed Shah of Iran, Mohammad Reza Pahlavi, who is in a New York
hospital. The United States refuses.
    Day 2, Nov. 5 - Other followers of Ayatollah Ruhollah Khomeini, the
Iranian Moslem leader, seize the British Embassy in Tehran, claiming
Britain is America's ''evil'' ally. But they give it up hours later.
    Day 3, Nov. 6 - President Carter convenes the National Security
Council in Washington to discuss the crisis. In Tehran, Premier Mehdi
Bazargan and his Cabinet resign.
    Day 4, Nov. 7 - Iran refuses entry to U.S. presidential envoys
Ramsey Clark and William Miller to discuss the crisis with authorities
in Tehran.
    Day 5, Nov. 8 - The militants at the U.S. Embassy claim documents
found in the embassy prove the American diplomatic personnel were part
of an ''espionage unit.''
    Day 6, Nov. 9 - The United Nations Security Council calls on the
militants to free the hostages ''without delay.''
    Day 7, Nov. 10 - President Carter orders the Justice Department to
deport Iranians who do not comply with their student visa
requirements.
    Day 8, Nov. 11 - Anti-U.S. fervor builds in Iran. The embassy
militants call for a cutoff of oil shipments to the United States.
    Day 9, Nov. 12 - President Carter orders a halt to oil imports from
Iran, which provided nearly four percent of daily U.S. consumption.
    Day 10, Nov. 13 - The Iranian government calls for a U.N. Security
Council meeting to discuss its complaints against the United States.
    Day 11, Nov. 14 - All Iranian assets in the United States are frozen
on Carter's orders. Secretary of State Cyrus R. Vance heads off a
Security Council debate on Iranian complaints.
    Day 12, Nov. 15 - The embassy militants release one hostage, an
Italian cook.
    Day 13, Nov. 16 - A crowd estimated at 80,000 march past the U.S.
Embassy in Tehran, shouting anti-American sl'gans.
    Day 14, Nov. 17 - Khomeini orders the militants to release all women
and black hostages if they are absolved of ''espionage.''
    Day 15, Nov. 18 - The militants announce they will free 13 hostages
- eight black men and five women.
    Day 16, Nov. 19 - Three of the hostages - two black Marines and a
woman secretary - are released.
    Day 17, Nov. 20 - Ten more American hostages are freed. The Pentagon
orders the aircraft carrier Kitty Hawk and five other Navy warships
to proceed to the Indian Ocean near Iran.
MORE
    
ap-ny-12-21 0420EST
**********

a005  0129  21 Dec 80
BC-Iran Chronology, 1st Add,490
UNDATED: near Iran.
    Day 18, Nov. 21 - Hundreds of thousands of Iranians mass on this
Islamic holy day outside the U.S. Embassy chanting, ''Death to
Carter!'' In Saudi Arabia, Moslem zealots seize Islam's holiest
shrine, the Grand Mosque at Mecca. In Pakistan, angry Moslems,
believing the United States was behind the Mecca seizure, burn the
U.S. Embassy in Islamabad. Two Americans are killed.
    Day 19, Nov. 22 - U.S. diplomatic missions in Turkey, Bangladesh and
India come under attack by Islamic militants. Five non-American
hostages are freed from the U.S. Embassy in Tehran.
    Day 20, Nov. 23 - President Carter warns Khomeini of ''extremely
grave'' U.S. retaliation if a single U.S. hostage is harmed.
    Day 21, Nov. 24 - Carter meets with the U.S. Joint Chiefs of Staff.
Khomeini says Iran has the ''absolute right'' to try the shah.
    Day 22, Nov. 25 - U.N. Secretary-General Kurt Waldheim calls for an
emergency session of the Security Council on Iran.
    Day 23, Nov. 26 - Khomeini tells Iranians to learn to use weapons,
set aside their differences and unite against the United States or
''we will disappear for good.''
    Day 24, Nov. 27 - The U.N. Security Council meets in a 16-minute
session to hear Waldheim appeal to the United States and Iran to avoid
any action that could ''inflame'' the situation. Another session is
called for Dec. 1.
    Day 25, Nov. 28 - Abolhassan Bani-Sadr, considered a moderate on the
hostages after having said he does not believe they should be held
indefinitely, is replaced as foreign minister by Sadegh Ghotbzadeh,
who advocates releasing the Americans only after the shah is returned.
President Carter tells a news conference he will pursue every
peaceful means to free the hostages.
    Day 26, Nov. 29 - The United States asks the International Court of
Justice at The Hague, Netherlands, for an emergency ruling against
the seizure of the hostages in Iran. Mexico says the shah cannot
return to exile there.
    Day 27, Nov. 30 - Iran announces it will boycott the U.N. Security
Council session.
    Day 28, Dec. 1 - U.S. Ambassador Donald F. McHenry tells the
Security Council Americans are ''seething'' with anger over the
hostage situation.
    Day 29, Dec. 2 - The shah leaves New York for a military hospital
near San Antonio, Texas. Iranians vote on a new Islamic constitution
giving Khomeini supreme power for life. Pro-Iran demonstrators in the
Arab nation of Libya attack the U.S. Embassy in Tripoli.
    Day 30, Dec. 3 - Iranians vote overwhelmingly in favor of a new
Islamic constitution giving Khomeini supreme power.
    Day 31, Dec. 4 - The U.N. Security Council votes unanimously to urge
Iran to free the American hostages.
    Day 32, Dec. 5 - The embassy militants reject the Security Council
appeal but Radio Tehran says the U.N. action ''left the way open for
negotiation.'' Carter says he is ''tightening the screws'' on Iran.
MORE
    
ap-ny-12-21 0430EST
**********

a006  0138  21 Dec 80
BC-Iran Chronology, 2nd add,500
UNDATED: on Iran.
    Day 33, Dec. 6 - Unrest is reported in Iran's Turkic-speaking
Azerbaijan Province where followers of Ayatollah Mohammad Kazem
Shariat-Madari charge the new constitution denies them self-rule.
    Day 34, Dec. 7 - In Paris, the shah's 34-year-old nephew, Shahriar
Mustapha Chafik, is shot and killed on the street. Moslem extremists
claim responsibility.
    Day 35, Dec. 8 - Iran announces it is forming an international panel
to help investigate alleged spying by the hostages and U.S.
''crimes.''
    Day 36, Dec. 9 - Khomeini supporters clash with followers of
Shariat-Madari in Tabriz, the largest city in Azerbaijan.
    Day 37, Dec. 10 - The International Court of Justice at The Hague
hears U.S. complaints against Iran, which boycotts the session.
    Day 38, Dec. 11 - Ghotbzadeh says international observers will see
the hostages in the near future.
    Day 39, Dec. 12 - The U.S. State Department orders the expulsion of
183 Iranian diplomats.
    Day 40, Dec. 13 - Khomeini approves visits to the hostages by
independent observers. NATO foreign ministers formally denounce the
U.S. Embassy takeover.
    Day 41, Dec. 14 - Radio Tehran says Iraqi soldiers attack an Iranian
border post but Iraqi diplomats deny the report.
    Day 42, Dec. 15 - The shah flies to ''temporary'' exile in Panama.
The International Court at The Hague orders Iran to free all the
hostages.
    Day 43, Dec. 16 - Iran claims the shah's move to Panama is a partial
U.S. acceptance of Iranian demands. Some observers view this as
conciliatory.
    Day 44, Dec. 17 - The embassy militants rule out a Christmas release
of the hostages and say all of them will be tried.
    Day 45, Dec. 18 - Khomeini calls for extradition of the shah from
Panama and blames the United States for the assassination of a high
Iranian official, shattering U.S. hopes for a breakthrough.
    Day 46, Dec. 19 - Interior Minister Hashemi Rafsanjani is quoted as
saying families of the hostages may be allowed to visit them over
Christmas, but a militant spokesman says no decision had been taken.
    Day 47, Dec. 20 - Egyptian writer Mohammed Hassanein Heikal says
after an interview with Khomeini that the extradition of the shah is
no longer an issue. Khomeini says no one intends to kill the hostages.
    Day 48, Dec. 21 - Carter says the United States will ask the U.N.
Security Council to impose economic sanctions on Iran.
    Day 49, Dec. 22 - U.N. Secretary-General Waldheim informs the
Security Council that he sees no hope for an early release of the
hostages. The Khomeini government, faced with new internal unrest,
imposes martial law in Baluchistan, home area of another Iranian
ethnic minority.
    Day 50, Dec. 23 - U.TREE IS DELIVERED TO THE HOSTAGES AS MILITANTS
PREPARE FOR THE Christmas Eve arrival of three U.S. clergymen invited
to lead the Americans in holiday prayer. Iran's official Pars news
agency reports the provincial capital of Zahedan in Baluchistan is
calm following three days of rioting.
MORE
    
ap-ny-12-21 0440EST
**********

a007  0148  21 Dec 80
BC-Iran Chronology, 3rd add,480
UNDATED: of rioting.
    Day 51, Dec. 24 - American clergymen arrive for Christmas services
inside the U.S. Embassy compound.
    Day 52, Dec. 25 - The clergymen, after spending five hours in the
Embassy for Christmas services, say they counted only 43 hostages
while the U.S. State Department insists that there are 50. One
clergyman says about 10 of the hostages he saw showed defiance of
Iranian guards.
    Day 53, Dec. 26 - U.S. clergymen meet with Ghotbzadeh, who promises
them he will learn the names of the American hostages in an effort to
resolve the discrepancy between the numbers 43 and 50.
    Day 54, Dec. 27 - Ghotbzadeh declares all the hostages will be tried
if the U.N. Security Council imposes economic sanctions on Iran.
President Hafizullah Amin is overthrown and executed in a
Soviet-backed coup in neighboring Afghanistan. Soviet troops pour into
the country to put down a longstanding Moslem revolt.
    Day 55, Dec. 28 - President Carter announces he has ordered
Secretary of State Vance to press the U.N. Security Council to impose
economic sanctions on Iran.
    Day 56, Dec. 29 - Vance appeals to the Security Council to condemn
Iran's failure to release the hostages.
    Day 57, Dec. 30 - U.N. Secretary-General Waldheim tells the Security
Council he is going to Tehran in an effort to negotiate the release
of the hostages.
    Day 58, Dec. 31 - By a vote of 11-0, with four abstentions, the
Security Council approves a resolution giving Iran until Jan. 7 to
release the hostages or face possible sanctions.
    Day 59, Jan. 1 - Waldheim arrives in Tehran but is told he cannot
negotiate the release of the hostages.
    Day 60, Jan. 2 - Waldheim's first public appearance in Tehran is
cancelled after the official Pars news agency quotes Ghotbzadeh as
saying a plot against the secretary general's life had been discovered
and thwarted.
    Day 61, Jan. 3 - Khomeini refuses to meet with Waldheim, but Iranian
and U.N. spokesmen say progress was made in talks with other Iranian
leaders. The secretary general pledges that the United Nations will
investigate alleged human rights violations during the regime of the
shah.
    Day 62, Jan. 4 - The embassy militants call on Iranian officials to
turn over to them U.S. Charge d'Affaires L. Bruce Laingen, held since
Nov. 4 in Iran's Foreign Ministry with two other U.S. diplomats. The
militants also threaten to punish one of the hostages, Lt. Col. David
M. Roeder of the U.S. Air Force, accusing him of ''war crimes''
during the Vietnam war.
    Day 63, Jan. 5 - A huge crowd assembles in the streets near the U.S.
Embassy in a show of support for Khomeini. New factional violence
flares in the Azerbaijan capital of Tabriz and in the Persian Gulf
port of Bandar Langheh, home of Qashqai and Khamseh tribesmen.
MORE
    
ap-ny-12-21 0449EST
**********

a008  0154  21 Dec 80
BC-Iran Chronology, 4th add,340
UNDATED: Khamseh tribesmen.
    Day 64, Jan. 6 - The Tehran radio reports 43 persons killed and 110
wounded in two days of clashes between Shiite and Sunni Moslems in
Bandar Langeh, 600 miles south of Tehran. Fighting continues for the
third day in Tabriz.
    Day 65, Jan. 7 - Back from Iran, Waldheim tells the U.N. Security
Council Iranian officials had warned him that ''enforcement'' actions
against Iran would only provoke resistance. A vote on economic
sanctions is delayed. Sectional disorders continue in Tabriz and
Bandar Langeh as new unrest is reported among the Kurds in the
northwest.
    Day 66, Jan. 8 - With Kurdish violence escalating, Khomeini resolves
to issue an ultimatum to the Kurds to lay down their arms, according
to the official news agency Pars.
    Day 67, Jan. 9 - Ayatollah Mohammad Beheshti, first secretary of the
governing Revolutionary Council, tells reporters there is ''some
movement'' on the release of the U.S. hostages.
    Day 68, Jan. 10 - A delegation of Embassy militants confers with
Khomeini but details of the meeting are not disclosed. Anti-Khomeini
unrest continues in Tabriz and the Kurdish city of Sanandaj.
    Day 69, Jan. 11 - The U.N. Security Council delays for another day
its vote on economic sanctions after Iran's Foreign Ministry offers
unspecified proposals that sources say hold new hope for negotiations.
    Day 70, Jan. 12 - Anti-Khomeini mobs go on a rampage in Tabriz after
11 Azerbaijani dissidents are executed, having been convicted of
murder and other crimes against the Islamic republic.
    Day 71, Jan. 13 - Ten of 15 Security Council members vote in favor
of economic sanctions against Iran but the Soviet Union, as a
permanent member, vetoes the resolution. The United States decides on
sanctions of its own.
    Day 72, Jan. 14 - The Revolutionary Council orders all U.S. news
correspondents to leave Iran because of what it calls their ''biased
reporting.'' Ghotbzadeh says other countries would ''blur'' their
relations with Iran if they go along with the United States in
imposing economic sanctions.
MORE
    
ap-ny-12-21 0456EST
**********

a009  0207  21 Dec 80
AM-Iran-Hostages, 2nd Ld,a002,a216,250
URGENT
Eds: Text of Iranian message released, $23 billion demanded
By The Associated Press
    Iran is demanding the United States deposit $23 billion in the
Algerian Central Bank before the 52 U.S. hostages are released,
according to the official text of Iran's latest message to the United
States containing demands for the captives' release.
    The English-language text was released by Iranian officials on
Sunday.
    Behzad Nabavi, the head of Iran's government commission negotiating
the hostages' release of the hostages, had earlier said at a news
conference in Tehran that Iran had asked the United States to deposit
in excess of $19 billion.
    He said the figure included more than $9 billion to cover Iranian
assets frozen in U.S. bnaks after the hostages were seized and $10
billion to cover the wealth of the late shah. Algeria is acting as an
intermediary in hostage negotiations at Iran's request.
    The official text of the Iranian message to the United States
confirmed Nabavi's figures and showed that an additional $4 billion
was being requested in cash, ''or any other valid guarantee acceptable
to the above bank, as a guarantee for the bona fide discharge of its
(the U.S. government's) obligations.'' It did not define what it
meant by ''obligations.''
    The figures were the first from the Iranian regime on financial
demands being made before the captives could be freed.
    Iran has asked the United States to deposit financial guarantees
with Algeria relating to its demands for the release of frozen Iranian
assets and for the return of the late shah's wealth.
    On Saturday, 5th graf
    
ap-ny-12-21 0508EST
**********

a010  0214  21 Dec 80
BC-Iran Chronology, 5th add,370
UNDATED: economic sanctions.
    Day 73, Jan. 15 - American correspondents are given until midnight
Jan. 18 to leave the country. United States seeks support of its NATO
allies for economic sanctions.
    Day 74, Jan. 16 - On the first anniversary of the shah's flight from
Iran, U.S. reporters are barred for sending dispatches from Iran. A
Kuwait newspaper reports Iranian army officers attempted to overthrow
Khomeini but were caught and executed.
    Day 75, Jan. 17 - Letters written by U.S. hostages at Christmas time
reach the United States. One from Robert C. Ode asks the U.S.
government for ''prompt action to free us from this terrible
situation.''
    Day 76, Jan. 18 - Four black clergymen from Houston are reported
planning a visit with Khomeini to seek a ''spiritual solution'' to the
hostage crisis.
    Day 77, Jan. 19 - The U.S. clergymen are rebuked in efforts to see
Khomeini but their leader, the Rev. Gene Moore, predicts their
''spiritual proposal'' will win release of the hostages soon.
    Day 78, Jan. 20 - U.N. Secretary-General Waldheim says he has a
formula to resolve the hostage crisis but adds it will be a ''long
process.''
    Day 79, Jan. 21 - Ghotbzadeh, campaigning for the Jan. 25
presidential election in Iran, says the Soviet presence in Afghanistan
endangers Iran's borders.
    Day 80, Jan. 22 - The Carter administration delays imposing economic
sanctions until after Iran's presidential election Jan. 25.
    Day 81, Jan. 23 - The 79-year-old Khomeini is taken from Qom to the
cardiology department of a Tehran hospital with a heart problem.
    Day 82, Jan. 24 - Khomeini enters the intensive care unit of the
hospital but tells the nation in a broadcast that his heart condition
is ''not bad'' and calls for a full and peaceful turnout for Iran's
presidential election, in which eight official candidates are entered.
    Day 83, Jan. 25 - Presidential election day in Iran. U.S. officials
express hope the election will change the tone of the hostage crisis.
    Day 84, Jan. 26 - Finance Minister Abolhassan Bani-Sadr takes an
overwhelming lead in the presidential balloting. In an interview
published in France on this day, Bani-Sadr calls the hostage crisis a
''minor affair.''
MORE
    
ap-ny-12-21 0515EST
**********

a011  0216  21 Dec 80
BC-Iran Week by Week, 20th add,90
UNDATED: U.S. response.
    Week 59, Dec. 14-20 - Prime Minister Rajai says the hostages could
be home by Christmas if the United States gives a ''guarantee'' on
Iran's financial demands. Iran demands the United States deposit in
Algeria billions of dollars in ''gold and confiscated wealth'' as a
guarantee for the return of Iranian assets. The United States calls
the demand ''difficult.'' Rajai says the return of the shah's wealth
is the only potential problem among Iran's terms for the release of
the hostages.
    
ap-ny-12-21 0517EST
**********

a012  0224  21 Dec 80
BC-Iran Chronology, 6th add,390
UNDATED: ''minor affair.''
    Day 85, Jan. 27 - Bani-Sadr, now president-elect, says a solution to
the hostage crisis ''becomes attainable'' if the United States does
not meddle in Iranian affairs. Four Iranian air force men are executed
in Tabriz after being convicted of ''waging war on God'' and
''corruption on earth'' in connection with unrest in Azerbaijan.
    Day 86, Jan. 28 - Secretary of State Vance offers to work with
Bani-Sadr on the hostage crisis. The latter is quoted as telling the
French newspaper Le Monde in an interview that to win release of the
hostages the United States must acknowledge the crimes he claims it
has committed in Iran. Khomeini is removed from the intensive care
unit.
    Day 87, Jan. 29 - It is disclosed that six Americans, who escaped
capture when the U.S. Embassy was seized Nov. 4, had slipped out of
Iran with help of the Canadian Embassy, which issued them false
identities.
    Day 88, Jan. 30 - Foreign Minister Ghotbzadeh accuses Canada of
flagrantly violating international law by helping the six Americans to
escape.
    Day 89, Jan. 31 - U.S. officials express optimism over a ''package
deal'' for a settlement of the hostages proposed by U.N.
Secretary-General Waldheim.
    Day 90, Feb. 1 - First anniversary of Khomeini's return from exile.
West Germany's chief U.N. delegate, Rudiger von Wechmar, predicts the
hostages will be freed in two months under Waldheim's plan.
    Day 91, Feb. 2 - Embassy militants announce that a special
delegation of Americans will come to Iran to hear its complaints
against the shah and the United States. The U.S. State Department says
it has no knowledge of such a delegation.
    Day 92, Feb. 3 - A Foreign Ministry spokesman says Khomeini and the
Revolutionary Council have agreed to the establishment of an
international commission to consider alleged crimes of the shah and it
''will be effective in solving the hostage crisis.''
    Day 93, Feb. 4 - Khomeini swears in Bani-Sadr as president. Khomeini
also voices ''unconditional support'' for the Moslem rebels in
Afghanistan.
    Day 94, Feb. 5 - Explosions damage six oil pipelines in southwestern
Iran's oil-rich Khuzestan province, the eighth such incident in the
last few days. Tehran radio also reports the arrest of three Iraquis
on charges of subversive acts. Bani-Sadr is appointed chairman of the
Revolutionary Council.
MORE
    
ap-ny-12-21 0525EST
**********

a013  0231  21 Dec 80
BC-Iran Chronology, 7th add,360
UNDATED: Revolutionary Council.
    Day 95, Feb. 6 - Bani-Sadr calls the embassy militants lawless
dictators after they engineer the arrest of a government minister as
an alleged CIA ally. Authorities at Mehrabad Airport detain a
49-member American delegation for four hours after it arrives in
Tehran at the invitation of the militants.
    Day 96, Feb. 7 - Bani-Sadr formally takes over as head of the
Revolutionary Council, making him the No. 2 man in authority. He again
assails the embassy militants, calling them ''rebels against the
government.''
    Day 97, Feb. 8 - Khomeini's son Ahmad and a Greek Catholic
archbishop, Hilarion Capudji, a supporter of the Palestinian
Liberation Organization, visit the hostages and say they found them in
perfect health, Tehran radio reports.
    Day 98, Feb. 9 - Foreign Minister Ghotbzadeh, backing Bani-Sadr's
hardened stance against the militants, says force will be used ''if
necessary'' to free the U.S. hostages.
    Day 99, Feb. 10 - A group of visiting Americans meets with the
militants occupying the U.S. Embassy and reports ''a good exchange of
views,'' but the Americans are not allowed to see the hostages.
    Day 100, Feb. 11 - Bani-Sadr is quoted by the French newspaper Le
Monde as saying the Iranian government no longer demands the return of
the shah in exchange for the release of the hostages.
    Day 101, Feb. 12 - Iran's U.N. ambassador, Mansour Farhang, says in
an interview with The Associated Press the embassy militants are
beginning to ''lose credibility with the Iranian people.''
    Day 102, Feb. 13 - President Carter says he favors a U.N. commission
to look into the U.S. role in Iran and Iranian charges against the
shah. Bani-Sadr says Khomeini has accepted an ''action plan'' to end
the hostage stalemate.
    Day 103, Feb. 14 - A key negotiator, Sean MacBride of Ireland, says
in Paris an agreement has been reached to end the hostage standoff,
but U.S. officials caution against undue optimism.
    Day 104, Feb. 15 - U.N. sources say the United State and Iran have
agreed on the make-up of a five-member commission, selected by
Secretary-General Waldheim, to go to Iran to investigate Iran's
charges against the shah and the United States.
MORE
    
ap-ny-12-21 0532EST
**********

a014  0237  21 Dec 80
BC-Iran Chronology, 8th add,310
UNDATED: the United States.
    Day 105, Feb.16 - Bani-Sadr hardens his position, saying in a Greek
television interview the hostages might not be released until after
the United States ''undertakes its obligations'' to Iran - one of
which is the ''return'' of the shah.
    Day 106, Feb. 17 - Iran agrees orally to the composition of the
five-man Waldheim commission and a U.N. spokesman says athe commission
will leave for Iran in a few days.
    Day 107, Feb. 18 - State Department officials in Washington say the
U.N. plan is ''on track'' but with no firm timetable for the release
of the hostages. Embassy militants, however, say Khomeini and the
Iranian people still want the shah back before there is a release.
    Day 108, Feb. 19 - Bani-Sadr says Khomeini has accepted the final
terms of the Waldheim commission.
    Day 109, Feb. 20 - Waldheim announces the makeup of the commission
after getting Iran's formal approval, but delays its departure for
Tehran as Khomeini and Bani-Sadr reiterate Iran's demand for the
return of the shah.
    Day 110, Feb. 21 - Apparently inspired by a message of support from
Khomeini, the Embassy militants vow anew to hold the hostages until
the shah is reaves Panama for Egypt, ending a
100-day residence on a resort island. In Washington, White House
security adviser Zbigniew Brzezinski says the shah's decision was
taken for medical reasons. The shah's departure means Iran's efforts
for his extradition from Panana are thwarted.
MORE
    
ap-ny-12-21 0610EST
**********

a020  0315  21 Dec 80
BC-Iran Chronology, 13th add,350
UNDATED: are thwarted.
    Day 142, March 24 - Looking haggard, the shah arrives in Egypt where
he began his exile in January, 1979, and is greeted by President
Anwar Sadat, who says he can stay permanently. The shah enters a Cairo
hospital. Iranian officials claim the shah's departure from Panama
would obstruct the process toward resolving the hostage crisis in
Tehran.
    Day 143, March 25 - Iranian religious leaders again call for trials
of the U.S. captives because of the shah's departure from Panama.
Tens of thousands of Iranians rally outside the U.S. Embassy in Tehran
in support of the militants and demanding the shah's return.
Ghotbzadeh says demands for trials of the Americans are made by those
he calls ''irresponsible people.''
    Day 144, March 26 - Ghotbzadeh announces the second round of voting
for the new Parliament has been postponed to investigate charges of
fraud in the first round. This could mean a further delay in resolving
the hostage crisis. Dr. Michael DeBakey, the famed U.S. surgeon who
examined the shah in Panama, arrives in Cairo.
    Day 145, March 27 - State Department spokesman Hodding Carter
indicates U.S. policy-makers had reached decisions on new steps to end
the hostage crisis, but he declines to go into detail.
    Day 146, March 28 - The shah undergoes surgery for the removal of
his spleen. President Carter is reported considering a further cutback
of Iranian diplomats in the United States and new economic restraints
on Iran. Sean MacBride, the Irish former Irish diplomat who failed in
a mediation effort last December, returns to Tehran, reportedly at
the invitation of Bani-Sadr. In northwest Iran, government forces
clash for the second day with autonomy-seeking Kurds.
    Day 147, March 29 - The Iranian state radio broadcasts the text of a
letter it says was sent to Khomeini by President Carter acknowledging
past U.S. mistakes and calling for an international commission to
settle the hostage crisis. The White House categorically denies the
report. Fighting is reported continuing in the Kurdish area of Iran.
The shah is reported in stable condition after his splenectomy in
Cairo.
MORE
    
ap-ny-12-21 0617EST
**********

a021  0323  21 Dec 80
BC-Iran Chronology, 14th add,370
UNDATED: in Cairo.
    Day 148, March 30 - After Iranian officials insist Carter sent two
messages admitting past U.S. mistakes, Jody Powell says Swiss
diplomats had delivered messages from Carter to Iranian officials but
denies they contained admissions of mistakes. Ghotbzadeh says that if
Carter acknowledges the messages it would help in ''reducing tension
and resolving differences between Iran and the United States.''
    Day 149, March 31 - Bani-Sadr meets with representatives of the
militants, apparently in an effort to have them turn over the U.S.
hostages to the Iranian government. In Washington, there are
indications President Carter is preparing to take new action if the
transfer of the hostages is not made.
    Day 150, April 1 - In a move President Carter calls a ''positive
development,'' Bani-Sadr offers to take custody of the hostages if the
United States agrees to a truce in what he calls its war of words and
economic and diplomatic pressure against Iran. Carter says he is
deferring imposition of new economic sanctions and other punitive
measures against Iran.
    Day 151, April 2 - Bani-Sadr now says Carter has not met his terms
for a transfer of the hostages. A top White House official says the
Carter administration is not sure what the Iranian president wants.
Sean MacBride, back in Dublin from his visit to Iran, says an
international trial of the shah under U.N. auspices, might be a way
out of the impasse.
    Day 152, April 3 - The Revolutionary Council demands clarification
of U.S. pledges before asking the militants to transfer the hostages
and Bani-Sadr says the final approval of the transfer rests with
Khomeini. The Carter administration says Iranian authorities should
''weigh the full implications of the situation'' in making their
decision on the hostages.
    Day 153, April 4 - An Iranian Foreign Ministry statement charges the
United States is engaging in a war of nerves. The Embassy militants
announce they will allow American clergymen to conduct Easter services
for the hostages.
    Day 154, April 5 - Bani-Sadr is quoted by Le Monde as reiterating
Iran's demand that Carter must clarify his stand on the crisis. Three
U.S. clergymen arrive in Tehran for Easter services for the hostages.
MORE
    
ap-ny-12-21 0624EST
**********

a022  0331  21 Dec 80
BC-Iran Chronology, 15th add,430
UNDATED: the hostages.
    Day 155, April 6 - Easter services are held for the hostages inside
the U.S. Embassy by the three American clergymen, who report later
the hostages seem in good condition. The Iranian government is
reported to have reached a decision on the custody of the hostages. In
Washington, Carter is described as preparing new sanc'ions against
Iran.
    Day 156, April 7 - Khomeini rules the hostages must remain in the
hands of the militants. In response, the United States breaks
diplomatic relations with Iran, expelling 35 diplomats remaining in
the country and imposing a series of economic sanctions. Iran's army
is put on the alert after forces of neighboring Iraq attack an Iranian
border post and nearby oil facilities. Iran orders its diplomats home
from Iraq.
    Day 157, April 8 - An angered Khomeini calls the United States
''bloodthirsty'' but tells his people the U.S. break in relations and
other actions are a ''good omen'' because they mean the United States
has lost all hope of controlling Iran. Bani-Sadr says, however, ''I
tell the nation, it is a war.''
    Day 158, April 9 - As Washington hints of a possible naval blockade
of Iran, the militants say they will burn the U.S. Embassy and kill
the hostages if the United States tries ''even the smallest'' military
move against Iran. The Iraq-Iran conflict escalates, with Iranian
television reporting an air battle involving one Iranian Phantom jet
and helicopters engaging Iraqi helicopters over the border town of
Baveissi.
    Day 159, April 10 - The nine nations of the European Common Market
issue a ''demand'' for Iran to release the hostages but they stop
short of joining the United States in economic sanctions. Iranian and
Iraqi forces clash again on their border, with each side claiming the
other is acting on behalf of U.S. ''imperialists.''
    Day 160, April 11 - Bani-Sadr says America's oil-thirsty allies
won't get ''so much as snake's poison'' if they back U.S. sanctions.
He is quoted as saying in an interview with the Italian magazine
L'Espresso ''I do not want or cannot involve myself further in the
hostage affair,'' having already done ''everything in my power.''
    Day 161, April 12 - America's European allies and Japan demand that
Iran set a release date for the hostages. Bani-Sadr counters by
saying the Majlis, as the new parliament will be known, will decide
the issue, but promises the captives will receive visits and health
care. Carter says he had set a ''specific date'' by which time he
expects action from his allies, but doesn't disclose the deadline.
MORE
    
ap-ny-12-21 0632EST
**********

a024  0342  21 Dec 80
BC-Iran Chronology, 16th add,330
UNDATED: the deadline.
    Day 162, April 13 - The militants announce they will allow Red Cross
representatives to check the condition of the hostages.
    Day 163, April 14 - Two representatives of the International Red
Cross visit the hostages for seven hours and report them in good
physical shape but under difficult psychological conditions.
    Day 164, April 15 - The Red Cross relays messages from the hostages
to their families in the United States. The Soviet Union is reported
by Washington officials to have sent troops to its border with Iran
and at least 400 marines into the Indian Ocean aboard an assault
vessel.
    Day 165, April 16 - A senior U.S. official says Iran has until
mid-May to end the deadlock or face possible military pressure. But in
Tehran, Ayatollah Beheshti tells reporters the new Parliament would
not consider the hostage crisis until June or July.
    Day 166, April 17 - President Carter imposes more economic sanctions
on Iran, bans travel there by Americans - except news correspondents
- and says military action could be the next step if the hostages are
not released. The European Parliament urges the nine Common Market
countries to consider breaking relations with Iran. Portual bans all
trade with Iran.
    Day 167, April 18 - Barbara and Kenneth Timm of Oak Creek, Wis.,
mother and stepfather of Sgt. Kevin Hermening of the Marines, leave
for Tehran in hopes of seeing her hostage son. In Washington,
President Carter says in an interview he has received reports quoting
Khomeini as saying the hostages won't be released until after the
U.S. presidential election Nov. 4.
    Day 168, April 19 - Mrs. Timm talks to the militants and says later
chances are ''pretty good'' she will visit her son. Foreign Minister
Ghotbzadeh ends a mysterious trip to Paris where he is reported to
have conferred with men who have been acting as intermediaries in the
negotiations with Washington. Leftists and Moslem students clash at
universities across Iran.
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ap-ny-12-21 0643EST
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a025  0349  21 Dec 80
BC-Iran Chronology, 17th add,410
UNDATED: across Iran.
    Day 169, April 20 - Unrest continues on major university campuses in
Iran and 70 persons are reported killed in tribal disorders in
rebellious Kurdistan.
    Day 170, April 21 - Mrs. Timm visits with her son for 45 minutes and
says later she found him in excellent health. Carter says in a CBS
interview the hostages are ''in jeopardy'' because of a what he calls
a ''volatile political situation'' in Iran. Campus disturbances are
reported continuing.
    Day 171, April 22 - The nine nations of the European Common Market,
in a move given lukewarm approval by U.S. officials, decide to reduce
their diplomatic staffs in Iran and promise to impose economic
sanctions if no ''decisive progress'' is made in the hostage crisis by
May 17. Clashes are reported again in Kurdistan as university clashes
go on.
    Day 172, April 23 - Japan and Canada join in economic and diplomatic
sanctions against Iran. Iran announces new trade accords with the
Soviet Union, Romania and East Germany. Six new deaths are reported in
flareups on Iranian campuses.
    Day 173, April 24 - Ghotbzadeh says Iran will cut off the entire
Persian Gulf, the West's vital oil route, if the United States mines
Iranian ports. The Soviet Union confirms it will open its highway
system to Iran if the United States imposes a blockade. Fighting is
reported raging in Kurdistan with accounts of hundreds of Kurds killed
in Iranian air force attacks.
    Day 174, April 25 - The White House announces a U.S. military force
flew to a remote desert in Iran in hopes to carrying out a rescue of
the hostages in Tehran but the plan had to be aborted because of the
failure of three helicopters. Eight American servicemen are killed in
a ground collision of a C-130 and a helicopter as the aircraft were
preparing to leave the area.
    Day 175, April 26 - Iran announces the hostages are being moved from
the U.S. Embassy to other parts of Tehran and to other Iranian cities
to foil another U.S. rescue effort. Iranians recover the bodies of
the eight Americans killed on the rescue mission.
    Day 176, April 27 - The U.S. carrier Constellation and six escort
vessels arrive in the Indian Ocean near Iran, bringing American naval
strength in the area to a record level of 34 vessels. Iranians
display bodies of eight U.S. servicemen at U.S. Embassy compound in
Tehran.
MORE
    
ap-ny-12-21 0651EST
**********

a026  0356  21 Dec 80
BC-Iran Chronology, 18th add,360
UNDATED: in Tehran.
    Day 177, April 28 - Secretary of State Vance resigns in protest of
the attempt to rescue the hostages. A wave of bombings in Iran kills
three persons. The U.S. Embassy in Tehran is fired upon three times by
persons described as ''anti-revolutionary elements.''
    Day 178, April 29 - Sen. Edmund S. Muskie is named to succeed Vance.
Carter says it was right to order the hostage-rescue mission.
    Day 179, April 30 - men described as Iranian Arabs seize Iran's
embassy in London and take about a score hostages, most of them
Iranians. They demand the Iranian government free 91 persons they
claim are being held in Iran as political prisoners.
    Day 180, May 1 - Saboteurs who Iranians say are backed by the United
States fire on the U.S. Embassy in Tehran, wounding a revolutionary
guard; attempt to blow up a bridge in the capital, and set off bombs
in two cities. Iran refuses to negotiate on the London embassy
seizure.
    Day 181, May 2 - The Iranian government sets May 9 as the date for
the final round of balloting for a new parliament. The militants at
the U.S. Embassy accuse the United States of complicity in the London
embassy seizure.
    Day 182, May 3 - The U.S. hostages complete a half year in
captivity. Iran arranges for the return of the bodies of Americans
killed in the aborted rescue mission.
    Day 183, May 4 - Bani-Sadr meets Cuban officials to seek a
conference of non-aligned nations to protest the attempted U.S.
hostage rescue.
    Day 184, May 5 - British commandos storm the Iranian Embassy in
London, ending the six-day occupation by gunmen supporting the ethnic
Arab minority in Iran's Khuzestan Province. Nineteen hostages are
freed in the operation that came after the gunmen killed two of their
captives. Five of the terrorists were killed and a sixth captured.
    Day 185, May 6 - Iranian authorities arrest an American woman,
Cynthia Dwyer of Buffalo, N.Y., claiming she is a CIA agent. The
bodies of the Americans who died in the abortive U.S. rescue bid are
sent by plane to Switzerland.
MORE
    
ap-ny-12-21 0657EST
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a027  0404  21 Dec 80
BC-Iran Chronology, 19th add,340
UNDATED: to Switzerland.
    Day 186, May 7 - The militants holding the American hostages say 12
groups of captives have been scattered to various Iranian cities to
head off any new U.S. rescue attempt. Ghotbzadeh praises the British
hostage rescue in London.
    Day 187, May 8 - Iranian militants say they will rotate their
captives in various cities to ''confuse American intelligence.''
Italian journalist Oriana Fallaci writes that she has been told one of
the U.S. hostages tried suicide three times and may be dead. The
shah's former education minister, a woman, is executed by a firing
squad.
    Day 188, May 9 - Iranians vote in the second round of balloting for
the new parliament. Khomeini agrees to let Bani-Sadr choose a prime
minister and Cabinet and put the armed forces under presidential
control.
    Day 189, May 10 - The Islamic Republican Party, many of whose
members demand spy trials for the hostages, takes a commanding lead in
the parliamentary election.
    Day 190, May 11 - Radio Tehran says Islamic hardliners have won a
majority in the new parliament. Khomeini takes measures indicating he
is tightening controls on the military and the press.
    Day 191, May 12 - Bani-Sadr suffers an apparent setback in the
elections and Islamic fundamentalists indicate he will not be able to
name a prime minister of his choice.
    Day 192, May 13 - Radio Tehran claims U.S. helicopters flew over
Iranian ships working in Persian Gulf oil fields but changed course
after Iran's armed forces were alerted. The Pentagon denies the
report.
    Day 193, May 14 - Bani-Sadr claims in a Radio Tehran interview that
96 U.S. agents, headed by Iranian sympathizers, landed in Iran
recently on a two-week sabotage and assassination mission and that two
Americans were captured. The U.S. State Department declines to
comment.
    Day 194, May 15 - The White House denies any U.S. agents arrived in
Iran. Khomeini calls for a purge of what he calls ''deviationist
groups'' from Iranian broadcast media.
    Day 195, May 16 - A pipeline is blown up and a fire rages in a major
oil-producing area where an ethnic Arab minority lives.
    Day 196, May 17 - Common Market foreign ministers meet in Naples,
Italy, to discuss sanctions against Iran. U.N. Secretary-General
Waldheim announces he is sending Syrian diplomat Adib Daoudy to Iran
to discuss completion of the work of the U.N. commission that went to
Tehran earlier in the year to seek a settlement of the hostage
crisis.
MORE
    
ap-ny-12-21 0705EST
**********

a028  0412  21 Dec 80
BC-Iran Chronology, 20th add,420
UNDATED:hostage crisis.
    Day 197, May 18 - The Sunday Times of London reports wealthy Iranian
exiles have launched a campaign to topple Khomeini.
    Day 198, May 19 - Radio Tehran says Iranian military forces conduct
maneuvers in the Strait of Hormuz at the entrance to the Persian
Gulf. The British House of Commons waters down economic sanctions
against Iran.
    Day 199, May 20 - Mansour Farhang, Iran's U.N. ambassador, says it
is no longer in his country's best interest to hold the American
hostages. The Pars news agency claims helicopters from Afghanistan
attack an area inside Iran.
    Day 200, May 21 - The United States rebukes Iran for ignoring
internatinal appels to free the hostages.
    Day 201, May 22 - U.N. emissary Adib Daoudy of Syria flies to Geneva
to discuss his mission to Tehran with Secretary-General Waldheim.
    Day 202, May 23 - Pars reports the uncovering of a plot to overthrow
the Iranian government by a group it says calls itself the ''Army of
Iranian Freedom-Seekers.''
    Day 203, May 24 - The International Court of Justice calls for
release of the hostages and says Iran should compensate the United
States for the seizure. Iran dismisses the ruling. U.N. emissary
Daoudy arrives in Tehran.
    Day 204, May 25 - President Bani-Sadr is quoted as saying the
responsibility for the hostages will be transferred for the militants
to the new Parliament when it is installed.
    Day 205, May 26 - The United States, apparently hopeful of Soviet
cooperation, says it may request a special U.N. Security Council
session if Iran ignores the World Court order for the hostages'
release.
    Day 206, May 27 - A column in the Islamic Republican Party newspaper
says the hostages should be held until the exiled shah and his wealth
are returned.
    Day 207, May 28 - The militants warn the hostages will be ''tried
and punished'' unless the shah and his riches are returned. In its
opening session, Parliament hears a call from Ayatollah Khomeini to
maintain ''a policy of neither East nor West.''
    Day 208, May 29 - Yadolah Sahabi, temporary head of Parliament, says
the hostage issue will not be discussed until late July.
    Day 209, May 30 - Iraqi artillerymen pound Iranian border posts in a
new upsurge of frontier hostilities between the two Mideast
neighbors, Tehran radio reports.
    Day 210, May 31 - Ayatollah Beheshti, head of the Islamic Republican
Party which controls Parliament, endorses Moussa Kalantari, Iran's
little known transportation minister, for premier.
MORE
    
ap-ny-12-21 0713EST
**********

a030  0425  21 Dec 80
BC-Iran Chronology, 21st add,510
UNDATED: for premier.
    Day 211, June 1 - Iranian news reports claim 30 persons have been
killed and 80 wounded in three days of fighting with Iraqis along the
frontier.
    Day 212, June 2 - Defying a U.S. ban on travel to Iran, former
Attorney General Ramsey Clark and nine other Americans attend the
opening session in Tehran of a ''Crimes in America'' conference of
delegates from 50 nations.
    Day 213, June 3 - Ramsey Clark tells the conference he would offer
himself as a hostage if it would speed the release of the 53 Americans
being held in Iran. He calls the seizure of the hostages
''understandable'' but wrong.
    Day 214, June 4 - Bani-Sadr tells Clark and the other Americans in
Tehran he wishes the United States would form what he calls an
''officially recognized commission'' to document alleged U.S. crimes
against Iran. Clark says the proposal is of ''enormous importance.''
    Day 215, June 5 - The anti-American conference adopts a resolution
condemning U.S. treatment of Iran. Ghotbzadeh, the conference
chairman, rejects a proposal of the American delegates that the U.S.
hostages question be mentioned in the resolution.
    Day 216, June 6 - Radio Tehran, calling Clark ''the vilest American
agent,'' demands to know why Ghotbzadeh permitted him to take part in
the ''Crimes of America'' conference. In Washington, Sen. Robert
Dole, R-Kan., introduces Senate resolution calling for the prosecution
of Clark and the other Americans who attended the conference.
    Day 217, June 7 - Five members of the Clark mission deliver a box of
material to militants holding the hostages but are refused permission
to meet with the captives.
    Day 218, June 8 - Clark, in Paris, says in an interview the United
States should apologize to Iran for past actions there.
    Day 219, June 9 - Bani-Sadr is quoted by an Iranian newspaper as
saying trials of the hostages, as suggested by some Iranians, would
cause problems for his country.
    Day 220, June 10 - Speaking to provincial governors, Khomeini says
internal dissention in Iran threatens the survival of the government.
    Day 221, June 11 - Kurdish rebels blow up a key highway bridge near
the Turkish border and the Interior Ministry says a ''large number''
of people were killed in recent clashes between the autonomy-seeking
Kurds and Iranian troops. Tehran radio says an oil depot was set
afire at Salmas in other internal violence.
    Day 222, June 12 - The Tehran radio says a plot to overthrow the
Khomeini regime is uncovered in the Iranian army. Five persons are
reported killed and 300 injured in street clashes between leftists and
Islamic fundamentalists in Tehran.
    Day 223, June 13 - Secretary of State Muskie says the diffusion of
political autority in Iran remains the chief obstacle in the hostage
crisis. Political observers in Tehran say renewed rioting reflects the
breakdown of political unity.
    Day 224, June 14 - Khomeini announces a Cultural Revolution ''to
finish the enemies of God,'' wipe out remnants of Iranian life as it
was under the shah and put Islamic clergymen in charge of education.
MORE
    
ap-ny-12-21 0726EST
**********

a031  0434  21 Dec 80
BC-Iran Chronology, 22nd add,430
UNDATED: of education.-    Day 225, June 15 - Khomeini orders a purge of non-Mo-
slems from
Iran's state-run radio and television, Radio Terhan says. The radio
also announces the executions of a retired army general, Albar Yusefi,
who the broadcast said helped bring the shah to power and once
arrested Khomeini. It added that 12 other persons convicted of drug
smuggling, prostituion and homosexuality also were executed.
    Day 226, June 16 - Ghotbzadeh says the hostage crisis can be solved
only as part of a comprehensive settlement of all U.S.-Iranian
problems.
    Day 227, June 17 - The Iranian Parliament is not likely to consider
the hostage question tunil mid-September, the Tehran newspaper
Donyaye Iran says in an article based on interviews with Parliament
members. It quotes some as saying the issue may eventually be put
before the people in a referendum.
    Day 228, June 18 - Dr. Hassan Ayat, leader on the clergy-dominated
Islamic Republican Party, is quoted by the Tehran newspaper Enghlab
Eslami as saying he had plotted the overthrow of Bani-Sadr on the
grounds he is ''a tool of America.''
    Day 229, June 19 - Bani-Sadr strikes back, assailing ''opportunistic
positions'' he says are taken by Islamic fundamentalists. Talking to
reporters in Tehran, he also says he has ordered a reshuffling of the
nation's top military command.
    Day 230, June 20 - Speaking in Qazvin, 50 miles northwest of Tehran,
Bani-Sadr says revolutionary courts had no right to form separate
armed forces and that the revolutionary guards, police and gendarmerie
should act in their place.
    Day 231, June 21 - The chief of the army's Revolutionary Tribunal
says 27 members of the armed forces have been arrested on charges of
conspiring with 250 other soldiers to topple the government. Among
those reported implicated is Adm. Ahmad Madani, who finished second in
Iran's presidential elections earlier this year.
    Day 232, June 22 - Pentagon planners estimated that as many as 30
U.S. commandos and 15 hostages could have been killed in the aborted
American rescue attempt on April 24, according to Newsweek magazine.
    Day 233, June 23 - Ghotbzadeh tells a French TV interviewer the
hostage crisis ''could be settled in four or five weeks'' but doesn't
say under what conditions.
    Day 234, June 24 - Nine persons are killed by a bomb explosion on a
street in Tehran named after Ayatollah Khomeini, Tehran radio says.
    Day 235, June 25 - Ayatollah Behesti, a leading member of the
Iranian Parliament, says there is ''just a possibility'' U.S. hostages
judged to be innocent of spying would be freed, but he gives no
timetable.
MORE
    
ap-ny-12-21 0735EST
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a032  0442  21 Dec 80
BC-Iran Chronology, 23rd add,450
UNDATED: no timetable.
    Day 236, June 26 - Iran and Libya have been trying to assassinate
the shah in Egypt, according to an aide to Egyptian President Anwar
Sadat. Tehran radio reports the executions of two Iranian army men
convicted of conspiring against the government.
    Day 237, June 27 - Khomeini accuses Bani-Sadr government of being
''ineffective'' in finding solutions to the nation's problems.
Thirteen more executions are reported in Iran.
    Day 238, June 28 - Radio Tehran quotes Bani-Sadr as saying he now
considers the hostage crisis ''unsolvable.'' The shah is reported in
''very serious'' condition in a Cairo hospital, suffering pneumonia
which resulted from chemotherapy for his cancer condition.
    Day 239, June 29 - An Iranian Justice Ministry investigator says
U.S. Marine Staff Sgt. Michael Moeller, 28, a hostage from Loup City,
Neb., will be tried on charges of seducing an Iranian woman who later
was hanged by her brother as her punishment. The shah's condition is
reported as greatly improved.
    Day 240, June 30 - The Justice Ministry investigator calls on
Moeller's parents to go to Iran to seek ''forgiveness'' for their son.
Iran orders the expulsion of a Soviet diplomat for allegedly
exchanging ''intelligence documents'' with a foreigner. The shah
undergoes surgery for the removal of fluid in his lungs. He is
reported in satisfactory condition.
    Day 241, July 1 - Iranian officials say the hostages will not be
released if the shah dies, unless the United States lifts its economic
embargo and promises not to meddle in Iran's affairs.
    Day 242, July 2 - Iran tells the Soviet Union to close one of its
consulates and asks for a reduction in the number of Soviet diplomats
in the country.
    Day 243, July 3 - A Tehran dispatch of the Yugoslav news agency
Tanjug says the Islamic Republican Party, which has a parliament
majority, will demand compensation from the United States for its
involvement in Iran over nearly 30 years. The shah again is described
as being in serious condition in Cairo. His affliction this time is
reported as a typhoidal infection.
    Day 244, July 4 - Hundreds of thousands of Iranians march through
Tehran and other cities in a show of support for Khomeini as the
hostages spend their fifth holiday - and begin their ninth month - in
captivity. In Paris, nine Iranian students claiming to be Khomeini
followers briefly seize the Iranian Embassy before being dispersed by
police.
    Day 245, July 5 - About 2,000 women wearing black mourning dresses
demonstrate outside the presidential office to protest new rules
requiring government employees to wear traditional Islamic clothing on
the job and Bani-Sadr promises to review the regulations.
MORE
    
ap-ny-12-21 0743EST
**********

a033  0450  21 Dec 80
BC-Iran Chronology, 24th add,410
UNDATED: the regulations.
    Day 246, July 6 - Radio Tehran says the militants have transferred
some of the U.S. hostages from three towns to new locations because of
what they call U.S. ''plots'' against their lives.
    Day 247, July 7 - The Soviet Union informs Iranian authorities it
has information that an attempt might he made to seize its embassy in
Tehran and demands protection from the government. The shah's
condition is reported greatly improved in Cairo.
    Day 248, July 8 - The idea of trials for the U.S. hostages is
winning support among influential members of the Iranian parliament,
Tehran newspapers report. Iranian officials fire 131 women civil
servants because they balk at wearing traditional Islamic dress.
    Day 249, July 9 - The Iranian parliament will elect a prime minister
shortly, taking one more step toward consideration of the hostage
issue, the Tehran newspaper Enghelab Eslami says.
    Day 250, July 10 - Khomeini orders the release of hostage Richard
Queen, a 28-year-old vice consul. The Tehran announcement, which says
Queen is ill and should be returned to his family, followed a
government claim that it had crushed a U.S.-backed army plot to
overthrow the government and bomb Khomeini's home.
    Day 251, July 11 - Queen arrives in Zurich, Switzerland, where
preliminary tests indicate he has a neurological disorder. Pars, the
Iranian news agency, reports the arrest of an armored division
commander and 16 of his officers for alleged involvement in plot to
overthrow the government.
    Day 252, July 12 - A Tehran newspaper now says 350 soldiers,
including several high-ranking officers, have been arrested in
connection with the alleged anti-Khomeini plot. Ex-hostage Queen meets
with his parents in Zurich and then is flown to a U.S. Air Force
hospital in Wiesbaden, West Germany.
    Day 253, July 13 - Aazam Taleghani, a woman member of Iran's
parliament, says the hostages should be tried by an international
panel and ''when their espionage crimes are proved, we ask the nation
to free, imprison or execute them.''
    Day 254, July 14 - Firing squads execute 26 people, including the
shah's army chief of staff, Lt. Gen. Houshang Hatam, on a variety of
charges. The militants claim that hostage Thomas Ahern, a State
Department employee, had admitted being a CIA officer.
    Day 255, July 15 - Ex-hostage Queen's illness is diagnosed as
multiple sclerosis. Iran seals its borders in an effort to track down
people involved in the anti-Khomeini plot disclosed July 10.
MORE
    
ap-ny-12-21 0751EST
**********

a034  0458  21 Dec 80
BC-Iran Chronology, 25th add,400
UNDATED: July 10.
    Day 256, July 16 - Iran's chief justice, Ayatollah Beheshti, says
hundreds of accused anti-government conspirators will be tried for
their lives. A Roman Catholic missionary school in Tehran, with about
800 students, is ordered closed after its priests are accused of
spying for Israel, according to the Tehran radio. It says the priests
deny the charges.
    Day 257, July 17 - Iran's parliament elects six non-clerical members
of the Guardian Council, which judges legislation in accordance with
Islamic precepts. The act gives legal validity to the parliament
which is expected to decide the fate of the hostages.
    Day 258, July 18 - An attempt is made in Paris to assassinate
Shahpour Bakhtiar, the last Iranian prime minister under the shah and
leader of an anti-Khomeini exile movement. Bakhtiar is unharmed but a
French policeman and woman neighbor are killed. Seven men and women
are executed in a street in downtown Tehran in a continuing crackdown
on drugs and sin. Ex-hostage Queen returns to the United States.
    Day 259, July 19 - Some of those accused participating in the
anti-government plot go on trial. The number held now is given as
about 500. A group calling itself the Guards of Islam claims
responsibility for the attempt to assassinate former Prime Minister
Bakhtiar in Paris.
    Day 260, July 20 - A retired brigadier general and four Iranian air
force officers are executed after being convicted of plotting against
the government. Hojjatoleslam Ali Akbar Rafsanjani, leader of the
Islamic Republican Party, is elected speaker of the parliament.
    Day 261, July 21 - Young Iranians, shouting ''Death to Russia,''
occupy the communist Tudeh Party headquarters in Tehran. Ten more
persons are executed - described as ''counter-revolutionaries''
apparently not connected with the anti-Khomeini plot, three on drug
charges and one in connection with a sabotage charge.
    Day 262, July 22 - President Bani-Sadr takes formal oath of office
before the new parliament. Ali Akbar Tabatabel, head of the
anti-Khomeini Iran Freedom Foundation, is slain in Bethesda, Md.
    Day 263, July 23 - Bomb blasts kill six people and wound 100 others
in a Tehran shopping arcade.
    Day 264, July 24 - Twenty military men, convicted of plotting a
coup, are executed at dawn in Tehran and nine other persons are put to
death in other parts of the country for offenses ranging from drug
trafficking to armed robbery, Radio Tehran reports.
MORE
    
ap-ny-12-21 0759EST
**********

a035  0507  21 Dec 80
BC-Iran Chronology, 26th add,430
UNDATED: Tehran reports.
    Day 265, July 25 - U.S. delegates, headed by William vanden Heuval,
walk out as the Iranian representative speaks at the U.N. General
Assembly's special sessoin on Israel. ''We owed it to the hostages to
do that,'' vanden Heuval says.
    Day 266, July 26 - Bani-Sadr nominates Mostafa Mir-Salim, national
police head, to be Iran's prime minsiter. Four men are executed in
Andimeshk, in Irans's southwest, for inovlvement in ''clashes,'' the
Pars news agency says.
    Day 267, July 27 - The deposed shah dies in a Cairo military
hospital. Tehran rejoices but U.S. officials express doubt the death
will speed the release of the hostages. In Washington, 193
pro-Khomeini Iranians are arrested after clashing with polcie during a
demonstration.
    Day 268, July 28 - The Tehran newspaper Islamic Revolution, believed
to have close links with President Bani-Sadr, says the United States
should transfer all the shah's assets to Iran.
    Day 269, July 29 - The shah is buried in a Cairo mosque after a
state funeral attended by President Sadat and former President Richard
M. Nixon, there in a private capacity. Bani-Sadr asks for a delay in
the parliament's vote on his nomination of Mostafa Mir-Salim as prime
minsiter.
    Day 270, July 30 - A letter signed by about 200 U.S. congressmen is
read to the Iranian Parliament appealing ''fervently'' for a quick
solution to the hostage crisis. The Parliament speaker says, however,
the United States is doing nothing to resolve the crisis.
    Day 271, July 31 - Eleven more accused plotters are executed,
bringing to 36 the number sent to their deaths in connection with the
alleged military plan to overthrow Khomeini.
    Day 272, Aug. 1 - At the urging of the State Department, Washington
city officials drop disorderly conduct charges against 193 Iranians
arrested during the pro-Khomeini demonstratrion July 27. The Iranians,
who accuse Washington police of brutality, are turned over to
immigration officials for possible deportation.
    Day 273, Aug, 2 - Iranians rally outside the U.S. Embassy compound
in Tehran to protest alleged mistreatment of the 193 Iranians in
detention in the United States. Meanwhile, 171 of the arrested men are
taken in chains to a federal prison in Otisville, N.Y., while 20
women are jailed in New York City. Two others are hospitalized.
    Day 274, Aug. 3 - More anti-U.S. demonstrations are reported in
Iran. Khomeini reacts angrily to a letter from Pope John Paul II
seeking assurances that Roman Catholics will be allowed to practice
their faith in Iran, but his anger is directed at the United States
over the detention of the Iranian students there.
MORE
    
ap-ny-12-21 0808EST
**********

a036  0515  21 Dec 80
BC-Iran Chronology, 27th add,420
UNDATED: students there.
    Day 275, Aug. 4 - The Majlis, Iran's parliament, calls on
prosecutors to prepare trials for the U.S. hostages in retaliation for
the detention of Iranians in the United States. In London, about 50
Iranians are arrested during a demonstration outside the U.S. Embassy.
    Day 276, Aug. 5 - U.S. immigration officials order the release of
191 Iranians from American prisons. In Iran, twelve more accused
anti-Khomeini plotters go on trial.
    Day 277, Aug. 6 - The release of the Iranians in the United States
is hailed by revolutionaries in Tehran as a defeat for America.
Khomeini accuses the Iranian news media of creating governmental
''mischief'' and says the nation will ''stifle'' newspapers that
continue to do so.
    Day 278, Aug. 7 - The Tehran radio reports the firing-squad
executions of 13 soldiers in connection with the alleged anti-Khomeini
plot. The number executed in connection with the plot is now reported
as 50.
    Day 279, Aug. 8 - Former Premier Bakhtiar announces in Paris he has
formed the National Iranian Resistance Movement to fight the Khomeini
regime.
    Day 280, Aug. 9 - Switching from his candidate of July 26, Bani-Sadr
nominates Education Minister Mohammad Ali Rajai as prime minister,
and apprently ends a bitter political dispute over the post.
    Day 281, Aug. 10 - Secretary of State Muskie is quoted by U.S. News
& World Report as saying the United States is considering new
diplomatic initiatives for the release of the hostages.
    Day 282, Aug. 11 - Rajai is confirmed by the Majlis as Iran's prime
minister, but differences surface between him and Bani-Sadr - a
possible new complication in the hostage question.
    Day 283, Aug. 12 - Khomeini confers separately with Rajai and
Bani-Sadr and ures a new ''atmosphere of understanding'' in Iran.
    Day 284, Aug. 13 - With Iranian demonstrators still held in Britain,
reports from Tehran indicate Iranian retaliation: a British woman
missionary is jailed and accused of spying; a British doctor and his
wife are reported seized in Yezd, and three British women teachers are
expelled.
    Day 285, Aug. 14 - Iran accuses the Soviet Union of supplying arms
to Kurdish rebels in western Iran.
    Day 286, Aug. 15 - Firing squads execute 18 more alleged
anti-Khomeini conspirators, the Tehran radio says.
    Day 287, Aug. 16 - Bani-Sadr escapes uninjured in a helicopter crash
near the border with Iraq. The White House denies a report by
columnist Jack Anderson that the Carter administration had drawn up
plans for an invasion of Iran in late October.
MORE
    
ap-ny-12-21 0816EST
**********

a037  0524  21 Dec 80
BC-Iran Chronology, 28th add,480
UNDATED: late October.
    Day 288, Aug. 17 - Britain temporarily closes its embassy in Tehran
''as a precautionary measure'' because of tensions over the arrests
of Iranian demonstrators in London. Eight of the embassy's diplomatic
personnel leave Iran.
    Day 289, Aug. 18 - The ambassadors of Japan, Italy, Belgium and the
Netherlands ask Iran's parliament speaker to permit an international
mission to visit the U.S. hostages, but the request is rejected.
    Day 290, Aug. 19 - At least 90 people are believed killed in the
explosion of a warehouse containing explosives in the Iranian oil
province of Khuzestan. Officials say a welder's torch set it off.
    Day 291, Aug. 20 - The Rt. Rev. Hassan Dehqani-Tafti, an exiled
Iranian Anglican bishop, says in London two Anglican church leaders
have been arrested in Iran in what he calls an Islamic government
campaign to ''discredit Christianity.''
    Day 292, Aug. 21 - Nine more servicemen go on trial in Iran in
connection with the alleged July plot to overthrow Khomeini. About 60
accused plotters already have been reported executed.
    Day 293, Aug. 22 - The Soviet Union officially denies an Iranian
charge that it is ''no less satanic than the United States'' in
dealing with the Islamic revolutionary government. Iranian officials
describe as false a Lebanese report that five U.S. hostages were
killed in an escape attempt.
    Day 294, Aug. 23 - A Pentagon panel in Washington says some planning
flaws and other weaknesses, including assignment of too few
helicopters, helped doom the hostage rescue mission on April 25.
    Day 295, Aug. 24 - Revolutionary guards arrest several foreigners at
an Anglican church office, claiming it served as a U.S.-financed spy
center.
    Day 296, Aug. 25 - The militants holding the U.S. hostages say they
will kill them if there is the ''slightest'' American military move
against Iran.
    Day 297, Aug. 26 - Bishop Dehgani-Tafti, the exiled Iranian Anglican
churchman, denies his church in Tehran is a spy center, as
revolutionary guards charged.
    Day 298, Aug. 27 - Chancellor Helmut Schmidt of West Germany appeals
to Prime Minister Rajai to help bring about the release of the U.S.
hostages.
    Day 299, Aug. 28 - Amnesty International, the London-based human
rights organization, says its investigations indicate that more than
1,000 people, possible more than 1,200, were executed in the first 18
months of the Khomeini revolution.
    Day 300, Aug. 29 - Bani-Sadr reiterates his opposition to spy trials
for the hostages. Iran's United Nations representative says in New
York the hostage-release process could be speeded up if the United
States released the estimated $8 billion in Iranian assets it has
frozen.
    Day 301, Aug. 30 - Sixteen more people are executed in Iran, 11 of
them convicted of involvement in the July anti-Khomeini plot and the
others of ''participating in the massacre of Moslem people,'' the
official Pars news agency reports.
    
ap-ny-12-21 0825EST
**********

a038  0534  21 Dec 80
BC-Iran Chronology, 29th add,510
UNDATED: agency reports.
    Day 302, Aug. 31 - Rajai names his Cabinet, including leading
Islamic Republican Party member Hossein Musavi Khameneie as foreign
minister. Tehran reports say Bani-Sadr disapproves of many of the
choices. The Cabinet appointments await Parliament's approval.
    Day 303, Sept. 1 - The Iranian news agency reports a letter from
U.S. Secretary of State Muskie urging the hostages' early and safe
release was delivered Aug. 31 to Rajai.
    Day 304, Sept. 2 - Rajai and Bani-Sadr meet to discuss the newly
appointed Cabinet.
    Day 305, Sept. 3 - ABC News reports that the Muskie letter to Rajai
says the United States will recognize Iran's revolutionary regime and
not interfere in Iran's internal affairs if the hostages are freed.
The Iranian government announces new restrictions on foreign
missionaries.
    Day 306, Sept. 4 - Rajai and Parliament Speaker Rafsanjani denounce
British ''injustices'' in continuing to hold 46 Iranian demonstrators
in London jails, and say Britain's actions will not ''go
unanswered.'' Firing squads execute six people convicted of starting
an August, 1978, theater fire in Abadan that reportedly took 422
lives.
    Day 307, Sept. 5 - The Iranian Foreign Ministry, continuing its
diplomatic confrontation with the Soviet Union, gives the Soviets 48
hours to shut down their Consulate in the northern city of Rasht.
    Day 308, Sept. 6 - Iran's foreign relations commission holds
preliminary discussions on the hostages. Ayatollah Sadegh Khalkhali
escapes assassination in Hasht Par, 100 miles northwest of Tehran.
Four suspects are arrested. Government forces clash with
''counter-revolutionaries'' near border with Iraq.
    Day 309, Sept. 7 - Muskie says in a U.S. TV interview there is
evidence of ''increasing awareness'' by Iranian leaders that the
hostage issue should be settled.
    Day 310, Sept. 8 - Bani-Sadr accuses his critics in Iran of
betraying Islam and Khomeini's principles by lying about his loyalty
to the revolutionary government.
    Day 311, Sept. 9 - Prime Minister Rajai says he may be ready to
discuss the hostage issue if the United States has ''repented.''
Britain closes its embassy in Tehran, fearing retaliation by Iranians
who claim Iranians were ill-treated in London.
    Day 312, Sept.10 - U.S. State Department spokesman John Trattner
says the United States is willing to discuss the hostage issue with
Iran but does not intend to apologize for its past actions in Iran.
    Day 313, Sept. 11 - An Iranian diplomat, Mostafa Dabiri, says in
Geneva any consideration of the hostage issue ''must include America's
previous interference in Iran's internal affairs.''
    Day 314, Sept. 12 - Khomeini lists four conditions for the hostages'
release but omits a previous demand for a U.S. apology. The
conditions: return of the late shah's wealth, cancellation of U.S.
claims against Iran, unfreezing of Iranian funds in the United States
and U.S. guarantees of no interference in Iran. Washington's
immediate reaction is guarded.
    Day 315, Sept. 13 - Iran's former foreign minister, Sadegh
Ghotbzadeh, says Khomeini's four conditions ''unlock'' the hostage
issue and that Secretary of State Muskie's Aug. 31 letter asking for
resolution of the hostage issue was ''positively received'' in Tehran.
MORE
    
ap-ny-12-21 0836EST
**********

a039  0546  21 Dec 80
BC-Iran Chronology, 30th add,650
UNDATED: in Tehran.
    Day 316, Sept. 14 - The Majlis, Iran's parliament, votes to open
debate Sept. 16 on the hostage issue. Bani-Sadr and Rajai escape
unharmed when an Iraqi jet attacks their helicopter as they tour the
Iran-Iraq border conflict area, the Pars news agency says.
    Day 317, Sept. 15 - President Carter says recent Iranian statements
could lead to a settlement, but parliament speaker Rafsanjani and two
religious leaders deny Iran has dropped its demand for a U.S.
apology.
    Day 318, Sept. 16 - Full debate of the hostage issue is delayed in
the Majlis. A special committee is to be chosen to deal with the
question. Carter now says ''there is no prospect at this time for an
early resolution'' of the crisis.
    Day 319, Sept. 17 - Iraq abrogates its 1975 border agreement with
Iran. Bani-Sadr is quoted as saying the United States has proposed a
commission to examine past U.S-Iranian relations.
    Day 320, Sept. 18 - Iraq claims two Iranian military jets are shot
down in another flare up on the border of Iran and Iraq. The United
States comes under fire of Islamic hardliners in the parliament in
Tehran.
    Day 321, Sept. 19 - Air and ground battles break out between Iran
and Iraq, the Tehran radio says. Iran's navy command says naval
clashes are ''likely'' in the next few days. Secretary of State Muskie
says papers tracing U.S.-Iranian relations have been compiled for use
by a possible commission of inquiry.
    Day 322, Sept. 20 - Iran mobilizes a group of army reservists as new
air and ground fighting erupts on the Iraqi border. Bani-Sadr takes
personal command of the military.
    Day 323, Sept. 21 - Air, ground and naval clashes are reported
between Iraq and Iran along the disputed Shatt al-Arab estuary. U.S.
Secretary of Defense Harold Brown says the fighting ''is very
dangerous to all countries in the region and it's potentially
dangerous to the peace of the world.''
    Day 324, Sept. 22 - Iraq claims the border hostilities have become a
''full-scale war.'' It launches air attacks on at least seven Iranian
air installations, including one in Tehran. Iran claims it destroyed
11 Iraqi planes and four gunboats. Iraq claims six Iranian jet
fighters are downed.
    Day 325, Sept. 23 - Iraqi forces strike along a broad front, zeroing
in on the Iranian oil center at Abadan. Iranian planes attack
Baghdad, Iraq's capital. Three Americans are reported missing and
presumed dead in Iranian air attacks on Basra, Iraq. Oil shipments of
the two nations are disrupted. Iran's parliament ''freezes'' the
hostage issue because of the fighting.
    Day 326, Sept. 24 - Iraq says its forces push deeper into Iran and
claims the capture of three towns. Iranian planes and gunboats attack
Iraqi oil installations. President Carter says the disruption of the
flow of oil from the Perian Gulf ''would create a serious threat.''
    Day 327, Sept. 25 - Iraq claims the capture of thr key Iranian oil
port of Khorramshahr, a claim denied by Iran. Iraq offers terms of a
cease-fire but Iran insists on full Iraqi withdrawal from seized
territory. Secretary of State Muskie says he was assured in a New York
meeting with Soviet Foreign Minister Andrei Gromyko of Soviet
neutrality in the conflict.
    Day 328, Sept. 26 - Iraqi planes bomb western Tehran and a nearby
oil refinery. The U.N. Security Council meets in New York in an effort
to bring a cease-fire but reaches no immediate decision. A group of
Islamic nations announce a ''goodwill mission'' to Tehran and Baghdad.
    Day 329, Sept. 27 - Iraq claims its forces captured Ahwaz, a key oil
city 50 miles inside Iran, and correspondents report the fall of the
Khorramshahr oil port to the south. Iran denies either city has
fallen and the Khomeini regime rejects diplomatic efforts to end the
fighting.
MORE
    
ap-ny-12-21 0847EST
**********

a040  0553  21 Dec 80
BC-Iran Chronology, 31st add,320
UNDATED: the fighting.
    Day 330, Sept. 28 - U.N. Security Council votes unanimously to call
for a halt to the fighting between Iraq and Iran. President Saddam
Hussein of Iraq says he is willing to cease fire if Iran recognizes
Iraq's ''legitimate'' border rights. President Mohammed Zia ul-Haq of
Pakistan begins mediation efforts in Tehran and Baghdad.
    Day 331, Sept. 29 - Secretary of State Muskie meets with Middle
Eastern foreign ministers in New York to stress the importance of
keeping the oil routes open in the Persian Gulf. He reiterates U. S.
neutrality in the Iraq-Iran war.
    Day 332, Sept. 30 - Soviet President Leonid I. Brezhnev calls for
immediate peace talks between Iran and Iraq. Iranian envoy in Belgium
says Iran wants no mediation now. The United States sends four
special early-warning radar aircraft to Saudi Arabia to strengthen
that nation's air defenses.
    Day 333, Oct. 1 - Iraq offers to cease fire between Oct. 5 and Oct.
8 in a move aimed at opening negotiations. Iran claims the recapture
of a border town and says its planes attacked seven Iraqi cities.
Iraq claims its jets attacked Iranian oil depots and concentrations of
Iranian tanks.
    Day 334, Oct. 2 - Iran spurns Iraq's cease-fire offer and rejects
U.N. and Islamic peace proposals. Radio Tehran reports a seven-member
parliament committee has been named to consider the U.S. hostage
issue. Sources in Beirut say four of the members are not likely to
agree to freeing the hostages without trials.
    Day 335, Oct. 3 - Iran tells Arab nations not to help Iraq in the
war. Both Iran and Iraq claim control of the Iranian oil port of
Khorramshahr.
    Day 336, Oct. 4 - Iraqi troops take control of the port area of
Khorramshahr but fighting continues in the city. Iranian jets bomb
Baghdad in retaliation for Iraqi air attacks. King Hussein goes to
Baghdad to assess the war situation.
    
ap-ny-12-21 0854EST
**********

a041  0559  21 Dec 80
BC-Iran Chronology, 32nd add,340
UNDATED: war situation.
    Day 337, Oct. 5 - Iraq imposes a cease-fire but Iran, which earlier
had rejected it, sends aircraft to bomb Baghdad. Iraqi jets bomb
Tehran and three Iranian oil installations in retaliation. Radio
Tehran says a parliament session that was to discuss the hostage issue
is postponed because of the war.
    Day 338, Oct. 6 - Radio Tehran reports another Iraqi air attack on
the Iranian capital and says four persons are killed and 60 wounded.
Jordan mobilizes transport vehicles to carry food and supplies to the
Iraqi army.
    Day 339, Oct. 7 - A Kuwaiti newspapers says 40,000 Jordanian
soldiers are poised to aid Iraq. The United States tells Jordan to say
out of the war. Iraq and Iran step up attacks on each other's oil
installations.
    Day 340, Oct. 8 - Militants holding the U.S. hostages in Iran say
they are ''all right'' and that the parliament still is studying their
fate. The United States offers surveillance information to
non-combatant Persian Gulf states worried about possible Iranian
attacks.
    Day 341, Oct. 9 - Radio Tehran says Iraqi missile attacks kill 180
people and wound 300 others in two Iranian cities - the highest
casualty toll so far reported in a single day of the war. With
diplomatic peace efforts increasing, Iran says it plans to send
representatives to the U.N. Security Council, but adds it will not
discuss the hostage issue there.
    Day 342, Oct. 10 - Libya announces its support of Iran and is
reported airlifting supplies to Iranian forces. Iraq warns Iran of
more missile attacks. U.N. Secretary-General Waldheim calls for
cease-fire in Shatt al-Arab to safeguard foreign shipping.
    Day 343, Oct. 11 - Bani-Sadr is quoted as telling a French magazine
that the seizure of the U.S. hostages and ''excesses'' of Iranian
justice have contributed to Iran's isolation in the war with Iraq.
Iraqi tanks and planes open a drive to seize the Iranian oil center of
Abadan. Iraq breaks relations with Libya, Syria and North Korea,
charging they are helping Iran.
    
ap-ny-12-21 0900EST
**********

a042  0606  21 Dec 80
BC-Iran Chronology, 33rd add,330
UNDATED: helping Iran.
    Day 344, Oct. 12 - Bani-Sadr says in a telephone interview with The
Associated Press it should not take long for an Iranian parliament
committee to decide the fate of the U.S. hostages. Iraq says its
aircraft attack the Iranian refinery city of Abadan.
    Day 345, Oct. 13 - Iranian Prime Minister Rajai says the only
solution for the release of the hostages is for the United States to
recognize the rights the Iranian people and the conditions set by
Khomeini. Iraq claims its troops move closer to Abadan.
    Day 346, Oct. 14 - Iranian jets bomb Baghdad as Iraqi forces attempt
to encircle Abadan. Iran claims to have put down a Kurdish uprising
near the Turkish frontier.
    Day 347, Oct. 15 - Iraq claims its forces have completed the
encirclement of Abadan. Iranian communiques say the Iraqis are being
pushed back and that more than 1,000 Iraqis soldiers are killed in an
Iranian airborne attack on the northern edge of the invasion front.
    Day 348, Oct. 16 - Prime Minister Rajai leaves Tehran for New York
to attend a U.N. Security Council meeting on the Iran-Iraq war.
President Carter says he would be willing to meet with Rajai on the
hostage issue. Unconfirmed reports circulate in the United States of
an imminent release of the hostages. The reports are denied by U.S.
officials.
    Day 349, Oct. 17 - Speaking before the Security Council, Rajai
accuses the United States of helping Iraq. He claims the United States
sees in the war ''an opportunity'' for the release of the hostages.
Heavy fighting is reported in the Iranian cities of Khorramshahr and
Abadan. Iran claims Iraqis retreat from both places.
    Day 350, Oct. 18 - Rajai tells a New York news conference he
believes the United States ''in practice'' has already apologized for
its support of the shah and that a decision on the release of the
hostages is ''not far away.'' Iraq claims it has broken Iranian
resistance around Abadan and Khorramshahr.
    
ap-ny-12-21 0907EST
**********

a043  0615  21 Dec 80
BC-Iran Chronology, 34th add,500
UNDATED: and Khorramshahr.
    Day 351, Oct. 19 - Ayatollah Rafsanjani, speaker of Iran's
Parliament, tells a Swedish radio interviewer the conditions for the
hostages' release will be decided by the end of the week.
    Day 352, Oct. 20 - In a campaign speech, President Carter says he
will lift U.S. sanctions against Iran if the hostages are freed.
    Day 353, Oct. 21 - Prime Minister Rajai dismisses Carter's
suggestion and says Iran will not negotiate the hostage issue to get
military spare parts.
    Day 354, Oct. 22 - Iranian leaders claim the United States appears
ready to meet Iran's demands for the release of the hostages and they
could be freed as early as the following week. U.S. officials say
they are skeptical of the Iranian reports.
    Day 355, Oct. 23 - Reports from Tehran now say new terms for the
hostages' release may be added to those already set by Ayatollah
Khomeini and if they are not met by the United States the captives may
be tried.
    Day 356, Oct. 24 - U.S. officials say Iran is considering a plan to
release most, but not all, of the hostages.
    Day 357, Oct. 25 - Speculation on the release of the hostages mounts
in the United States on the eve of the scheduled parliamentary
hostage debate in Tehran. Carter administration officials caution
against too much optimism.
    Day 358, Oct. 26 - Iran's Parliament begins its hostage debate in a
secret session that is adjourned without decision. Vice President
Mondale says the United States will not send military spare parts to
Iran at least until the hostages are freed.
    Day 359, Oct. 27 - The Parliament again meets on the hostage
question but makes no headway. Government sources blame battlefield
developments for stalling the debate, but others say the Moslem
hard-liners are balking at plans to release the captives.
    Day 360, Oct. 28 - Ayatollah Khomeini attacks President Carter in a
speech, but makes no mention of the hostages.
    Day 361, Oct. 29 - The Parliament again meets and again fails to
reach a decision on the hostages. One deputy says new conditions for
their release have been decided.
    Day 362, Oct. 30 - An open session of Parliament is postponed until
Sunday, Nov. 2, after Moslem hard-liners boycott the meeting and
block a quorum.
    Day 363, Oct. 31 - Radio Tehran says Iran has been victorious in the
hostage crisis and a ''just method'' for freeing the captives has
been worked out. A Swedish airliner is reported on standby to fly the
Americans from Tehran. The White House continues to caution against
over-optimism.
    Day 364, Nov. 1 - The militants holding the hostages call for a
''grand demonstration'' at the U.S. Embassy on Nov. 4, first
anniversary of the embassy takeover and the hostages' capture.
Secretary of State Muskie denied the United States has made a deal
with Iran and says negotations probably will be needed on any Iranian
terms for the hostages' release.
    
ap-ny-12-21 0916EST
**********

a044  0625  21 Dec 80
BC-Iran Chronology, 35th add,520
UNDATED: hostages' release.
    Day 365, Nov. 2 - The Parliament votes to free the hostages if the
United States meets conditions set by Ayatollah Khomeini and a
parliamentary committee: Release of Iranian assets frozen in U.S.
banks, return of the late shah's wealth, withdrawal of lawsuits
pending against Iran and a U.S. pledge of non-intervention in Iranian
affairs. President Carter says the terms ''appear to offer a positive
basis'' for negotiations.
    Day 366, Nov. 3 - With Ayatollah Khomeini's approval, the militants
relinquish ''responsibility'' for the hostages to the Iranian
government. U.S. officials call it a major breakthrough.
    Day 367, Nov. 4 - Tens of thousands of Iranians demonstrate outside
the U.S. Embassy to mark the first anniversary of its capture. Iran's
Foreign Ministry demands a quick Carter administration response to
Iran's terms for the hostages' release. Ronald Regan defeats President
Carter in a landslide vote.
    Day 368, Nov. 5 - Prime Minister Rajai says Reagan's election will
have no effect on Iran but deputy speaker of Parliament Khoeini says
it could delay the hostages' release.
    day 369, Nov. 6 - A prominent member of Parliament, Sayed Mohammad
Khamenei, says the United States must make the next move in the
hostage crisis. President-elect Reagan says Iran has nothing to gain
by waiting for his inauguration to resolve the hostage issue.
    Day 370, Nov. 7 - Former Foreign Minister Ghotbzadeh is arrested and
jailed after criticizing Iran's Moslem fundamentalists.
    Day 371, Nov. 8 - The State Department works on President Carter's
response to Iran's hostage demands but cautions against high
expectations.
    Day 372, Nov. 9 - A spokesman for Prime Minister Rajai says the
militants still have not turned over custody of the Americans to the
government.
    Day 373, Nov. 10 - Deputy Secretary of State Warren Christopher
leads a party of Americans to Algiers and delivers the U.S. hostage
reply to Algerian envoys who will relay it to Tehran.
    Day 374, Nov. 11 - The U.S. team in Algiers explains the legal and
financial problems facing the United States in meeting Iran's
conditions. The Algerian envoys promise to transmit the U.S. response
and the Americans leave for home.
    Day 375, Nov. 12 - The U.S. response is delivered to the Iranian
government, an aide to Prime Minister Rajai reports. Bruce Laingen,
the senior U.S. envoy held at the Iranian Foreign Ministry, says in a
telephone interview that he is fine and, ''We're anxious to leave,
hopeful.'' Former Foreign Minister Ghotbzadeh is released from custody
after Ayatollah Khomeini intervened on his behalf.
    Day 376, Nov. 13 - President Carter says the next step is ''up to
the Iranians'' as the United States awaits word from Tehran on how
Iran views America's reply to its hostage demands.
    Day 377, Nov. 14 - Algiers prepares to receive the American hostages
if they are released, but there is no indication of progress in
Tehran.
    Day 378, Nov. 15 - Iranian officials study the U.S. message and an
adviser to Prime Minister Rajai says Iran will make a decision on it,
possibly ''in two or three days.''
    
ap-ny-12-21 0926EST
**********

a045  0636  21 Dec 80
BC-Iran Chronology, 36th add,570
UNDATED: three days.''
    Day 379, Nov. 16 - Tehran Radio quotes Parliament speaker Rafsanjani
as saying the legislature is ''to busy'' to discuss the hostages.
Former Secretary of State Henry Kissinger says he expects Iran to free
the Americans before President-elect Reagan is sworn-in on Jan. 20.
    Day 380, Nov. 17 - Rafsanjani says Parliament has had its say on the
hostages and the matter is now in the hands of the Iranian
government.
    Day 381, Nov. 18 - Rafsanjani visit Algeria and an aide to Ayatollah
Khomeini says the Parliament speaker should discuss the hostage issue
with Algerian officials, who are acting as intermediaries between
Iran and the United States.
    Day 382, Nov. 19 - Rafsanjani tells a news conference in Algiers
that U.S. acceptance of Iran's conditions ''in principle is not
enough'' and if the United States meets the conditions ''we will
release the hostages tomorrow.''
    Day 383, Nov. 20 - Secretary of State Muskie says the United States
has accepted Iran's four points in principle, but other U.S.
officials indicate there is still disagreement over details of the
Iranian demands.
    Day 384, Nov. 21 - There is no indication from Washington or Tehran
of any progress on the hostage issue.
    Day 385, Nov. 22 - Prime Minister Rajai's office says the U.S.
response is ''neither explicit nor clear,'' Iran's official Pars news
agency report. It says Iran is asking Algeria to tell the United
States to ''clearly announce its positive or negative response.''
    Day 386, Nov. 23 - Iran asks the United States for further
clarification of its response on the hostages.
    Day 387, Nov. 24 - Secretary of State Muskie says he sees no
short-term solution to the hostage question.
    Day 388, Nov. 25 - Parliament speaker Rafsanjani says Iran is
discussing with the Algerians ways the United States may meet Iran's
terms for releasing the hostages.
    Day 389, Nov. 26 - Algerian intermediaries confer in Washington with
State Department officials on Iran's latest message.
    Day 390, Nov. 27 - The hostages spend their second Thanksgiving in
captivity.
    Day 391, Nov. 28 - Reports that the hostages have been transferred
to Iranian government custody are denied in Tehran.
    Day 392, Nov. 29 - President Carter confers with his top aides at
Camp David on a U.S. clarification of its response to Iran's hostage
terms.
    Day 393, Nov. 30 - Prime Minister Rajai says the hostages are in
excellent health and good shape.
    Day 394, Dec. 1 - An Iranian official says the hostages have not yet
been transferred to the custody of the Iranian government.
    Day 395, Dec. 2 - Deputy Secretary of State Christopher gives
Algerian intermediaries a new U.S. reply to Iran's release demands.
    Day 396, Dec. 3 - Christopher says the process of freeing the
hostages is continuing to move forward.
    Day 397, Dec. 4 - Iran says a decision on whether the hostages are
freed, tried or referred back to the Parliament depends on the latest
U.S. response to Iran's demands. Algerian envoys bring that response
to Tehran.
    Day 398, Dec. 5 - The Carter administration tells Iran that further
delay in reaching an agreement on the hostages could jeopardize
chances for reaching a settlement in early 1981.
    Day 399, Dec. 6 - An Iranian government spokesman says ''it won't
take long'' to complete the assessment of the latest U.S. response to
Iran's hostage terms.
    
ap-ny-12-21 0937EST
**********

a046  0643  21 Dec 80
BC-Iran Chronology, 37th add,390
UNDATED: hostage terms.
    Day 400, Dec. 7 - U.S. proposals on hostage release under study in
Tehran. Iran's sternest judge, Sadegh Khalkhali, quits in row over
performance of his anti-narcotics campaign.
    Day 401, Dec. 8 - Parliament speaker Rafsanjani says latest U.S.
response takes clearer steps in carrying out Iran's demands.
    Day 402, Dec. 9 - White House Press Secretary Jody Powell reports
''some communications'' with Algerian intermediaries over hostage
issue.
    Day 403, Dec. 10 - New U.N. mediation is planned for Iran-Iraq war.
    Day 404, Dec. 11 - Iran reportedly rejects U.S. proposal to let
American courts decide whether the late shah's wealth belongs to Iran
or this his heirs.
    Day 405, Dec. 12 - An Iranian official terms the latest U.S.
response ''more positive,'' but says more indirect negotiations are
needed.
    Day 406, Dec. 13 - The chief of Iran's government hostage
commission, Behzad Nabavi, says Iran will send Washington its
proposals for solving the problem of the return of the shah's wealth.
Hostage families meet in Washington for a State Department briefing.
    Day 407, Dec. 14 - A top Iranian official denies a Kuwaiti news
report that the president of Syria had intervened in negotiations for
the release of the hostages.
    Day 408, Dec. 15 - President Bani-Sadr says the United States must
be prepared to return all of the shah's wealth in order to gain
hostages' release.
    Day 409, Dec. 16 - Prime Minister Rajai says the hostages could be
home by Christmas if the United States gives a ''guarantee'' on Iran's
financial demands.
    Day 410, Dec. 17 - The influential Ayatollah Beheshti says the U.S.
position needs ''corrections'' but expresses hope an impending
Iranian statement will lead to a solution. Ayatollah Khomeini
intervenes to halt new religious-secular confrontations in Iran.
    Day 411, Dec. 18 - Rajai says Iran's final response in the hostage
negotiations will come in the ''near future.'' Khomeini says Iran's
universities are strongholds of communism that should be kept closed.
    Day 412, Dec. 19 - Iran demands the United States deposit in Algeria
billions of dollars in ''gold and confiscated wealth'' as a guarantee
for the return of Iranian assets. The United States calls the demand
''difficult.''
    Day 413, Dec. 20 - Rajai says the return of the shah's wealth is the
only potential problem among Iran's terms for the release of the
hostages.
    
ap-ny-12-21 0945EST
**********

a047  0752  21 Dec 80
BC-Iran Text, 770
    NICOSIA, Cyprus (AP) - The following is the full text of the
response of the Islamic Republic of Iran to the United States
concerning conditions for the release of the 52 American hostages. The
translation is by the official Iranian news agency Pars, which
distributed the text here:
    
    In the name of God, most gracious, most merciful.
    On 2 November 1980, the Islamic Consultative Assembly announced its
resolution on the conditions for the release of the 52 Americans. On
3 November 1980, this resolution, in both Persian and English texts,
was delivered by the Iranian government to the ambassador of the
Algerian government in Washington for delivery to the U.S. government.
    On 12 November 1980, the response of the U.S. government, dated 8
November 1980, was delivered to the Iranian government by the
representatives of the Algerian Peoples Democratic Republic under
their memorandum dated 12 November 1980.
    Since in the responses of the U.S. government, no allusion was made
to the to the proposals contained in the resolution of the Islamic
Consultative Assembly, and no clear reference was made to them,
accordingly, during a meeting in Tehran with the representatives of
the Algerian Peoples Democratic Republic on 22 November 1980, the U.S.
government, through the Algerian representatives, was asked to
declare its clear response to those points.
    The Algerian representatives, in their memorandum dated 4 December
1980, delivered the complementary response of the U.S. to the
government of the Islamic Republic of Iran.
    After reviewing both responses and hearing the explanations of the
Algerian delegation, the following conclusions were reached:
    Despite the acceptance of the principles of the resolution of the
Islamic Consultative Assembly by the U.S. government, the proposed
undertakings of the U.S. government are not adequately responsive to
all the points asked by the Islamic Consultative Assembly of Iran, and
in some cases amendments to the responses, and changes in the
executive procedures are necessary.
    It is only after such amendments and changes that the aftermentioned
undertakings can be acceptable to the government of the Islamic
Republic of Iran as the minimum requirements. The amendments, changes
and executive procedures asked by the government of the Islamic
Republic of Iran, on the basis of the resolution of the Islamic
Consultative Assembly, are as follows:
    -Amendments relating to the American response to section one of the
resolution of the Islamic Consultative Assembly of Iran.
    With due regard to the fact that the official recognition of the
Islamic Revolution and the government of the Islamic Republic is a
fait accompli, and there is no request for such recognition in the
resolution of the Islamic Consultative Assembly, and at the same time
in the resolution of the Consultative Assembly, in the condition of
non-interference, the phrase ''from now on '' has been used,
accordingly ''recognition of the Islamic Revolution and government of
the Islamic Republic of Iran'''' be deleted from the declaration, and
the stipulation ''from now on'' be added to the condition on
non-intervention. With due regard to this explanation, the U. S.
declaration on non-intervention in Iran be amended as follows:
    ''Non-intervention in Iran. The government of the United States of
America hereby pledges not to intervene, from now on, directly or
indirectly, militarily of politically, in the internal affairs of the
Islamic Republic of Iran.''
    In addition to the above amendment in the declaration, it is
necessary that the overall response of the U.S. be amended
accordingly.
    Executive procedures of section two and three of the resolution of
the Islamic Consultative Assembly. With due regard to the fact that
the U. S. government has accepted the principles of sections two and
three of the resolution of the Islamic Consultative Assembly, the
following executive procedures are proposed:
    The U.S. government, in taking all the legal and administrative
steps necessary for carrying out all of the provisions of sections II
and III of the resolution of the Islamic Consultative Assembly will
also take the following measures:
    A. The return of 9,069 million dollars of Iranian assets plus
relevant interest at the standard rates, as well as the return of the
gold belonging to Iran, deposited with the Federal Reserve Bank of
New York, and deliver the above to the Central Bank of Algeria before
the release of the 52 Americans, hostages of the Iranian nation.
Immediately upon the release of the 52 Americans, these assets, after
deduction of the amounts mentioned in sub-sections A and B of section
II, will be placed at the disposal of the Iranian government by the
government of Algeria. These assets, in detail, are as follows:
    MORE
    
ap-ny-12-21 1053EST
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a048  0806  21 Dec 80
BC-Iran Text, 1st add,730
    NICOSIA: as follows:
    1. Deposits of Bank Markazi of Iran with American banks in London
3,518 million dollars.
    2. Deposits of Bank Markazi of Iran with American banks in Paris 400
million dollars.
    3. Deposits of Bank Markazi Iran with American banks in the United
States 167 million dollars.
    4. Deposits of other Iranian banks with American banks 300 million
dollars.
    5. Deposits of the National Iranian Oil Company 407 million dollars.
    6. Funds relating to oil sales 2,108 million dollars.
    7. Treasury notes of the Bank Markazi Iran with the Federal Reserve
Bank 1,100 million dollars.
    8. Deposits of the Bank Markazi of Iran with the Federal Reserve
Bank 269 million dollars.
    9. Trust fund of the Ministry of Defence of the Islamic Republic of
Iran 800 million dollars.
    Total: 9,069 million dollars.
    10. Bank Markazi of Iran's gold with the Federal Reserve Bank equal
to 1,632,827 ounces .
    B. With regard to the other assets and funds of Iran at the disposal
of, or under attachment by the American government, American
nationals or institutions inside or outside the United States, the
U.S. government, in pledging to return all such assets and funds, will
deposit with the Central Bank of Algeria a guarantee equal to 4
billion dollars in cash, or any other valid guarantee acceptable to
the above bank, as a guarantee of the bona fide discharge of its
obligations.
    Immediately upon the release of the 52 Americans the aforementioned
assets and funds will be placed at the disposal of representatives of
the government of the Islamic Republic of Iran for transfer to Iran.
    On the transfer of each part of the aformentioned assets and funds ,
an amount equal in value to such transfers will be deducted from the
amount of the guarantee deposited with the Central Bank of Algeria.
    C. The U.S. government will make the necessary committment to
respond to any kind of claims for losses arising from the Islamic
Revolution of Iran to American nationals, American government,
organizations and institutions , but not due decisions adopted by the
Islamic government of Iran. Relevant explanations were delivered to
the Algerian delegation on 10 december 1980, as follows: (by ''related
to the Islamic Revolution'' is meant all the claims related to any
damage to and loss by U.S. persons and entities caused by the
revolutionary movement of the Iranian people, and not by the decisions
of the government of the Islamic Republic of Iran, from February 11,
1979 until the present time.)
    D. For the purpose of comparing and checking the list of Iranian
assets and funds existing within the jurisdiction of the U.S.A. or at
the disposal of the American government, nationals and institutions
outside the U.S.A. and with due regard to the fact that the agents of
the deposed shah, before the downfall of the Pahlavi regime, have
destroyed much of the documents relating to the Iranian assets and
funds in the U.S.A., therefore the U.S. government will, within one
week from the date of receipt of this memorandum, provide the Iranian
government, through the government of Algeria, with a detailed list
of all the assets and funds of the Islamic Republic of Iran and
Iranian institutions. At the same time, the U.S.A. will undertake to
immediately place at the disposal of the government of the Islamic
Republic of Iran all Iranian assets and funds which may not have been
stipulated in the present lists, but may come to light at a future
date.
    
    Section II
    Steps to be taken by the government of the Islamic Republic of Iran.
    Concurrent with all the aforementioned steps to be taken by the U.S.
government, the Iranian government pledges to take the following
steps:
    A. With due regard to the fact that all declarations of default of
loan agreements, loan accelerations, and set-offs effected by American
banks will be nullified and cancelled, the government of the Islamic
Republic of Iran undertakes to pay the bona fide loan installments on
loans and credits contracted in the past, and hereby authorizes the
Algerian government to keep the amount of one billion dollars from the
aforementioned amounts as a guarantee for the delayed installments on
the aforementioned loans, and after reviewing each loan agreement,
the agreed sums be paid to the American banks. After settlement of
outstanding debts, the balance will be returned to Iran.
    MORE
    
ap-ny-12-21 1107EST
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a049  0820  21 Dec 80
BC-Iran Text, 2nd add,710
    NICOSIA: to Iran.
    B. Since the government of the Islamic Republic of Iran undertakes
to settle its bona fide debts to American persons or institutions, the
Iranian government accepts that the claims of American entities and
citizens against Iran, and the claims of Iranian nationals and
instituations against American nationals and institutions be settled,
in the first stage through agreement between the parties, and failing
such agreement, through arbitration acceptable to the respective
parties.
    For the purpose of repaying the above debts, the government of the
Islamic Republic of Iran will deposit with the Algerian government an
initial cash guarantee equal to one billion dollars, or any other
guarantee acceptable to the Central Bank of Algeria. In repaying such
debts, this guarantee will be adjusted in such a way that it will
never drop below 500 million dollars.
    It should be noted that the above guarantee will not include claims
arising from the results of the seizure of the former U.S. embassy in
Tehran, results arising from the hostage taking by the Iranian
people, and the reactions of the U.S. government, as well as claims
originating from the effects of the Islamic revolution of Iran.
    Executive procedure of section IV of the resolution of the Islamic
consultative assembly.
    Since the properties and assets of the deposed shah and his close
relatives have been confiscated, and those portions of the properties
and assets that have been determined have been appropriated for the
benefit of the Iranian nation, and since a large part of such
properties remains outside of Iran, specially in the U.S.A.,
accordingly and with due regard to the fact that the government of the
Islamic Republic of Iran presently has no complete information on the
amount of properties and assets plundered by the aforementioned
persons, therefore, for the purpose of speeding up the execution of
the resolution of the Islamic consultative assembly and the attachment
order of the attorney general in respect of the above properties, the
U.S. government was asked through the Algerian delegation, on 10
december 1980, to place at the disposal of the Iranian government, as
soon as possible, a complete list of the properties and assetes of
the deposed shah and his close relatives (a list of the relationships
was previously submitted) on the basis of information available
before 4 November 1979, and as at present .
    Since the U.S. govenment has, up till now, placed no useful
information in this respect at the disposal of Iran, therefore the
government of the Islamic Republic of Iran asks that the U.S.
government, in carrying out all the measures proposed in its submitted
responses, also take the following steps:
    A. As in the case of collecting information on frozen Iranian assets
and funds, when the U.S. government set a time limit and asked its
nationals and institutions to place all relevant information at the
disposal of the U.S. Treasury and stipulated that failure to do so
would entail fines and imprisonment, in this respect also the U.S.
government should take all legal and administrative measures, setting
a 30-day time limit and determine fines and imprisonment, for the
purpose of collecting information on the aforementioned properties and
assets, and issue the necessary instructions in this respect.
    B. Until final results are reached, the U.S. government will
continue the attachment of all the properties and assets of the
deposed shah and his close relatives.
    C. In addition to all the above measures relating to determination
of the properties and assets of the deposed shah and his close
relatives at the present time in the U.S.A., the U.S. government will
also determine all the properties and assets of the deposed shah and
his close relatives in the U.S.A. as at 3 November 1979 and notify
this to the government of the Islamic Republic of Iran within the
period stipulated above.
    D. The U.S. government pledges to provide information on the
amounts, origin and destination of the properties and assets of the
deposed shah and his close relatives transferred out of U.S.
jurisdiction, probably after triumph of the Islamic revolution and
until the date of acceptance of this response as well as information
on the agents involved in such transfers.
    MORE
    
ap-ny-12-21 1120EST
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a202  0851  21 Dec 80
BC-Iran Text, 3rd add, a047, a048, a049,370
NICOSIA: such transfers.
    (Eds: the following section was labeled with the numeral 3, which
apparently does not follow from previous. There also appears to be a
dropped word ''is'' in the first sentence.)
    3. The U.S. government to deposit with the Central Bank of Algeria a
cash guarantee equal to 10 billion dollars, or any other guarantee
acceptable to the Algerian government, which is a percentage of the
properties of the Iranian nation plundered by the deposed shah and his
relatives, as a guarantee of the bona fide discharge of its
obligations, so that:
    1. In case the U.S. government refrains from declaring a part or
parts of the properties and assets of the deposed shah and his
relatives to the Iranian government, and this fact is later discovered
and proven by the Iranian government,
    2. In case the U.S. government refrains from issuing the attachment
order on the properties of the deposed shah and his relatives, or
later cancels such an order,
    3. In case the U.S. courts refrain from carrying out the U.S.
government's attachment order, and the order, confirmed by the Iranian
courts, for the transfer of all the properties to the government of
the Islamic Republic of Iran,
    -then in such an eventuality the Algerian government will place at
the disposal of the Iranian government an amount from the guarantee
equal to the loss sustained from any one case or a number of cases of
the aforementioned eventualities. The amount of loss will be
determined by arbitration acceptable to the parties. The above
guarantee is for the bona fide execution of the undertakings, and on
the declaration of the Iranian government on the non-existence of any
kind of properties and assets, as well as by issuing the executive
order, and execution of the verdict of Iranian courts, the
above-mentioned guarantee will be lifted.
    The maximum period for notifying the non-existence of properties and
assets and issue of the attachment order by Iranian courts is one
year, and after clearing all attachment orders and transfer of all the
properties to the government of the Islamic Republic of Iran, will
the above guarantee be lifted.
    After all the conditions stipulated in this memorandum have been
carried out, and officially confirmed by the government of the
Algerian People's Democratic Republic, then the 52 Americans, hostages
of the Iranian nation, will be released.
    End Text
    
ap-ny-12-21 1153EST
**********

a206  0916  21 Dec 80
AM-OPEC,300
For Release at 6:30 p.m. EST
OPEC Oil Output Reported At 10-Year Low
    NEW YORK (AP) - The war between Iran and Iraq helped push oil output
in the Organization of Petroleum Exporting Countries to a 10-year low
in October, the trade newsletter Petroleum Intelligence Weekly said
Sunday.
    The publication said in its Monday edition that OPEC's production
fell to 23.3 million 42-gallon barrels daily from 25.5 million barrels
a day in September and 31.2 million barrels a day a year before.
    Petroleum Intelligence Weekly estimated Iraq's daily oil output at
450,000 barrels and Iran's production at 150,000 barrels in October.
Production was down from 3.4 million barrels a day in Iraq and 1.3
million barrels daily in Iran before the outbreak of the war between
the cartel members in September.
    As previously reported, Saudi Arabia raised its oil production from
9.5 million to 10.3 million barrels a day to help replace the lost
exports. Nigerian oil output rose from 1.6 million to 1.8 millon
barrels a day, while several other OPEC members posted small output
gains, the newsletter said.
    Oil exports from Iraq were estimated at around 900,000 barrels a day
in recent weeks, although editors of the newsletter said last week
that the shipments had been halted because pipelines from Iraq to
Mediterranean ports had been closed.
    Iran, meanwhile, is said to be exporting small quantities of oil
from ports in the southern Persian Gulf, far from the war zone to the
north.
    OPEC members provide about 26 percent of American oil needs.
Although the cartel last week approved an oil-price increase of nearly
10 percent, prices have not soared following the Iran-Iraq export
cuts because petroleum inventories in consuming countries are
exceptionally high.
    
ap-ny-12-21 1217EST
**********

a210  0955  21 Dec 80
AM-US-Hostages, Bjt,150
URGENT
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - Secretary of State Edmund S. Muskie said Sunday
that Iran's latest terms for releasing the 52 American hotages were
''unreasonable.''
    He said the demand for a U.S. guarantee that Iran will recover all
deposits it had made in western banks was beyond President Carter's
legal authority.
    ''The president does not have the power or authority to do that,''
Muskie said of Iran's latest condition for ending the 414-day
occupation of the U.S. Embassy in Tehran.
    Muskie, appearing on NBC's ''Meet the Press,'' ruled out return of
the Americans by Christmas, although he said negotiating efforts would
be continued by the Carter administration.
    ''It certainly is not going to happen by Christmas,'' he said. And,
Muskie added, it would be ''very difficult'' to resolve the crisis in
the month left to the administration.
    MORE
    
ap-ny-12-21 1254EST
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a211  1001  21 Dec 80
AM-US-Hostages, Bjt-1st Add,320
WASHN: the administration.
    Muskie said his characterization of Iran's demands as unreasonable
was the official reaction of the Carter administration. He said he had
discussed the situation with President Carter before the televised
interview.
    At the same time, though, Muskie said his remarks were not the
official U.S. response to the Iranian message that reached the State
Department on Friday. It is being considered in detail by officials
who have been handling the indirect negotiations through Algerian
intermediaries.
    Although Muskie's outlook was pessimistic, he said that ''this is
not the first time they've (Iran) required items that would require us
to go beyond the president's authority.''
    And he said the hostages eventually would be released by Iran.
    In the new demands, made public in Tehran on Sunday, Iran is
insisting the United States deposit $23 billion in the Algerian
Central Bank before the hostages are freed.
    Before the demands were made public by the Iranian government,
Behzad Nabavi, the head of Iran's government commission negotiating
the hostages' release, said at a news conference in Tehran that Iran
had asked the United States to deposit in excess of $19 billion - $9
billion to cover Iranian assets frozen in U.S. banks after the
hostages were seized and $10 billion to cover the wealth of the late
Shah of Iran. Algeria is acting as an intermediary in hostage
negotiations at Iran's request.
    Later, the official, English-language text of the Iranian message
confirmed the $9 billion and $10 billion figures and showed that an
additional $4 billion was being requested in cash, ''or any other
valid guarantee acceptable to the above bank, as a guarantee for the
bona fide discharge of its (the U.S. government's) obligations.'' It
did not define what it meant by ''obligations.''
    The figures were the first from the Iranian regime on financial
demands being made before the captives could be freed.
    
ap-ny-12-21 1302EST
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n029  1002  21 Dec 80
BC-AWACS
(Review of the Week)
By RICHARD HALLORAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Once upon a time, when the president of the United
States wanted to show the flag abroad, he dispatched gunboats to,
say, China or sent the Marines into Nicaragua. Later, it was
paratroopers to Lebanon or the Dominican Republic, or F-15 fighters
to the Middle East.
    Within the last two years, however, the favored vehicle for such
gestures has increasingly come to be an unarmed and ungainly
aircraft. It carries what looks like a giant mushroom on its back and
the cumbersome label of Airborne Warning and Control System. The
commonly used acronym is Awacs, pronounced ''a-wax.''
    The Awacs planes, which are modified Boeing 707 airliners crammed
with sophisticated radar made by Westinghouse, were ordered to Saudi
Arabia in 1979 during a period of tension between the two Yemens and
to South Korea during the political turmoil following the
assassination of President Park Chung Hee. This year, Awacs have been
deployed to Egypt after the Soviet Union invaded Afghanistan, to
Saudi Arabia again to monitor the war between Iraq and Iran, and,
most recently, to West Germany to watch for Russian moves into Poland
from Eaet agertany or the Soviet Union.
    Pentagon officials claim that Awacs is useful on such assignments
because it is visible without being obtrusive, is primarily for
defense and thus is not provocative, and shows off American
technology.
    Awacs is designed, for one thing, to help American fighters when
they are outnumbered. Awacs radar can pick up hundreds of enemy
airplanes, compute and display their positions, speed and altitudes,
and transmit that intelligence to American or Allied interceptors in
seconds. In some cases, the information can be transmitted to a
ground station where a commander can control not only interceptor
planes but also antiaircraft missles.
    Awacs has the capability to look down from 30,000 feet and spot
aircraft streaking in at low level under the beams of ground radar.
Awacs radar can pick out jets at treetop level 250 miles away. An
Awacs circling Manhattan, for instance, could monitor airplanes
landing in Boston or Washington. Above the horizon, that same plane
could detect planes for another 250 miles in every direction, from
Portland, Me., to Norfolk, Va., and as far west as Pittsburgh.
    The radar antenna rotating in the dome on the back of an Awacs, with
recent modifications, can pick out ships at sea. Moreover, using
different technology, it can spot helicopters in flight or a tank
column lumbering down a road. The radar ignores anything moving
slowly but can pick up the helicopter by the rotation of the blades
and the tanks by their radio transmissions.
    All that information is fed into a high-speed digital computer
aboard the plane and relayed to nine consoles that can be programmed
to display the whole scene or a small, intensified part of it. The
tactical air controller can switch channels to see any portion of the
battle area.
    Awacs can remain aloft as long as 72 hours when refueled in the air,
the endurance of the 17-member flight and operational crew and the
perishability of the oil in its four engines being its primary
limiting factors. The Air Force prefers to fly the planes in teams of
four, each up 12 hours, so that crews can be fresh and the planes
properly maintained.
    The reconnoitering Awacs sends out a high-powered, narrowly focused
doppler beam. As the beam encounters moving objects, it bounces back
to the Awacs and into its computer. Some of the military's
sophisticated hardware has a tendency to break down, but the Awacs's
radar, according to the manufacturer, is reliable because almost
every part of it is duplicated and constantly tested.
    Awacs has not been without its controversies. At $128 million
apiece, it is probably the most expensive flying machine in the
world. It has been called a ''flying aluminum cloud'' that can easily
be shot out of the sky. If threatened, the plane must either elude
its attackers or rely on fighter escorts. The Air Force asserts that
Awacs has been able to survive demanding tactical tests and has even
evaded hypothetical heat-seeking missiles fired in its direction.
    Perhaps the most damning criticism during its development in the
early 1970s was that its advanced and costly detection and
communication gear could be jammed easily by relatively cheap Soviet
devices. The Air Force and Westinghouse contend, however, that the
Awacs radar can filter out jamming or switch to other frequencies or
locate a jammer and order a fighter to knock it out. If an enemy
directs many ground jammers against an orbiting Awacs, it can drop
below the radar horizon, although that means losing some lookdown
coverage. Operating Awacs in pairs, each covering the jammed sector
of the other, can also overcome the opposition, the Air Force says.
    Whatever the case, advocates of Awacs appear to have won the day.
There are 22 on duty today, with a fleet of 34 planned by 1984. In
October, Boeing was awarded a $256 million contract to begin building
nine more for the United States. Boeing also has a $1.5 billion
contract with the North Atlantic Treaty Organization to build 18
Awacs and is scheduled to deliver the first in March. NATO was
reluctant to take Awacs because of its cost, but later agreed to a
fleet that will include 11 British-built Nimrods, a similar aircraft.
Saudi Arabian officers have suggested they would like to buy several
Awacs. But that has stirred objections from pro-Israeli Congressmen.
    
nyt-12-21-80 1303est
**********

a217  1122  21 Dec 80
AM-Exhumation, Bjt,700
State Dept Reportedly Asks Re-Examinations of Missionaries' Bodies
By DENISE BRAZIEL
Associated Press Writer
    The mother of one of four missionaries shot to death in El Salvador
said Sunday her daughter's body will be exhumed and an autopsy done
at the request of the U.S. State Department. And a nun in Cleveland
said the body of another of the four also will be exhumed.
    State Department officials hope they can determine the origin of the
fatal bullets, said Patricia Donovan, mother of slain lay missionary
Jean Donovan.
    The victims included Miss Donovan, Sister Dorothy Kazel of
Cleveland, and Sisters Ita Ford and Maura Clarke of the Maryknoll
Order in New York. All had been missing from their mission in La
Libertad, El Salvador, for two days when their bodies were found
earlier this month.
    ''The mother superior along with the family has agreed'' to the
exhumation and autopsy of Miss Kazel, said Sister Mary John of the
Ursuline Order in Cleveland. ''We understood the request (by the State
Department) was made for identification.''
    A duty officer for the State Department said during the weekend she
was not aware of any plans to exhume the bodies.
    Miss Donovan, 27, was buried in Florida and Miss Kazel, 41, was
buried in Cleveland. The two other nuns were buried where they were
found slain, in compliance with the policies of Maryknoll, which sends
missionaries around the world.
    ''We have not been approached by the State Department,'' said Sister
Melinda, a spokeswoman for the Maryknoll Sisters in New York. She
noted the burial in El Salvador might explain why the State Department
had not asked to exhume the bodies.
    In a telephone interview from her Sarasota, Fla., home Sunday, Mrs.
Donovan said she agreed to the exhumation for other, personal
reasons, as well.
    ''I don't want this to die out. I don't want my daughter to die in
vain,'' Mrs. Donovan told The Associated Press. ''I want those people
to get something for her having been there and died there.''
    The missionaries had been working with other members of a Cleveland
diocese mission for about 18 months.
    Mrs. Donovan said a U.S.-made bullet, if found during the autopsy,
would incriminate the El Salvadorian military in the deaths because
''any military supplies from the United States are grabbed there by
the military.''
    ''There is no doubt in my mind that the military killed her,'' Mrs.
Donovan said. She added that ''anyone who goes to help the people of
El Salvador is political, even though they are just giving them the
bare necessities of life.
    ''She was very political. She fed the hungry, clothed the naked,
housed people that didn't have homes . . . .''
    U.S. aid to the Central American country and a questionable foreign
policy are partly responsible for the slayings, she claimed. The
United States suspended aid to El Salvador after the deaths.
    ''I feel like we paid for the bullet that killed her,'' Mrs. Donovan
said. ''They wouldn't have had as much ammunition or the wherewithall
to commit the murders.
    ''I don't think they would have dared touch a blonde, blue-eyed 
gringa if we had had a stronger policy,'' she said. ''I firmly believe
if we had taken a stronger stand in Iran, Americans would have been
safe in small countries like El Salvador.''
    Jean Donovan had written a letter to Sen. Edward Kennedy, D-Mass.,
saying military forces in El Salvador were murdering and torturing
people with military aid from the United States. Her parents found the
unmailed letter among her effects and sent it to Kennedy.
    The senator's office told the Donovans it plans to ''contact some
people in El Salvador that should have been contacted'' by U.S.
officials for information, Mrs. Donovan said.
    And Mrs. Donovan said her son, Michael, and the brother of Miss
Clarke had been asked to meet with Secretary of State Edmund Muskie on
Monday to provide any information they could on the slayings.
    People in El Salvador told the Donovans the bullet that killed their
daughter did not exit the body, Mrs. Donovan said. She said the body,
buried in Sarasota on Dec. 9, would be taken to Jacksonville, Fla.,
for the autopsy.
    ''It's a horrible thing to go through, but I feel it is very
important,'' she said, adding that her husband signed release papers
Saturday.
    ''I'm not looking for revenge. I'm really not,'' Mrs. Donovan said.
''I would like our daughter's death to be the end to serfdom in El
Salvador and to bombs going off in Guatemala.''
    
ap-ny-12-21 1423EST
**********

a221  1205  21 Dec 80
AM-Iran-Hostages, Bjt,900
Iran Demands U.S. Deposit Billions in Algerian Bank
Laserphoto TEH3
By The Associated Press
    Iran has demanded the United States deposit $23 billion and more
than 1 1/2 million ounces of gold in the Algerian Central Bank before the
American hostages are freed, and a top Iranian official said Sunday
that Iran could hold the 52 captives ''for 10 more years.''
    In Washington, Secretary of State Edmund S. Muskie called the
Iranian demands ''unreasonable.'' He said the hostages would not be
home by Christmas.
    Iran released the official text of its response to Washington
concerning conditions for the release of the hostages after a Tehran
news conference by Executive Affairs Minister Behzad Nabavi, head of
the government's hostage negotiation team.
    ''We do not want to blackmail the U.S. government,'' Nabavi told
reporters. ''We do not want anything from them except what is our own
wealth.''
    He asserted the hostages would be released within 24 hours of the
time all the Iranian demands were met.
    Nabavi again rejected direct negotiations with Washington, saying,
''There is no room for bargaining.'' He indicated that rejection of
the Iranian demands probably would lead to a decision to refer the
issue to the Islamic courts. Nabavi said he did not believe the
Iranian parliament, or Majlis, would become involved again should the
U.S. reject the demands.
    Nabavi also announced the following developments about the welfare
of the hostages, held since Nov. 4, 1979:
    -They have recently been transferred to a new, but still undisclosed
location, and are in good health.
    -They may be interviewed by Iranian television and the broadcast
aired here Christmas night.
    -They are living in ''very beautiful hotels provided with complete
services.''
    There were no details about their exact location, which has been
kept secret since the unsuccessful U.S. rescue attempt last April. It
was not disclosed whether the captives were still under the guard of
the militants who stormed the U.S. embassy last year and recently
pledged to turn over responsibility for the hostages to the
government.
    The militants made their decision after the Majlis on Nov. 2 set
four conditions for release of the hostages. They are the return of
the wealth of the late shah and his close releatives, the unfreezing
of billions of dollars in Iranian assets in U.S. banks, the dropping
of pending law suits against Iran and a pledge not to interfere in the
country's internal affairs.
    The demands for more than $23 billion concern the frozen assets, the
legal claims and the shah's wealth. The text demands that the U.S.
take the following measures:
    ''The return of $9.069 billion of Iranian assets, plus relevant
interest at standard rates, as well as the return of gold belonging to
Iran deposited with the Federal Reserve Bank of New York, and deliver
the above to the Central Bank of Algeria before the release of the 52
Americans, hostages of the Iranian nation.''
    Iran said the gold totaled 1,632,827 ounces, worth just under $1
billion at current prices.
    With regard to other assets and funds of Iran held by the U.S.
government or private sector, the U.S. goverment ''will deposit with
the Central Bank of Algeria a guarantee equal to $4 billion in cash or
any other valid guarantee acceptable to the above bank, as a
guarantee for the bona fide discharge of its obligations.''
    Concerning the shah's wealth, the requirement is for the U.S.
government to ''deposit with the Central Bank of Algeria a cash
guarantee equal to $10 billion or any other guarantee acceptable to
the Algerian government, which is a percentage of the properties of
the Iranian nation plundered by the deposed shah and his relatives, as
a guarantee for the bona fide discharge of its obligations.''
    Nabavi was asked about recent statements by Prime Minister Mohammad
Ali Rajai saying Iran considered the hostage crisis a dead issue and
expressing hope that soon there would be no hostage problem. He
replied: ''It was not a problem for us even in the past. We can keep
them for 10 more years and give them food and clothing.''
    For the first time, Iran has revealed it is prepared to repay loans
defaulted with U.S. banks.
    The text states that Iran authorizes the Algerian government to hold
$1 billion from the demanded financial guarantees ''for the delayed
installments on the aforementioned loans and after reviewing each loan
agreement the agreed sums be paid to American banks.''
    After settlement, the balance would be returned to Iran.
    Nabavi said the signature of President Carter to undertake the
carrying out of the demands is not sufficient guarantee for Iran
because the United States might change its policy under the new
administration of President-elect Ronald Reagan.
    Muskie, appearing on NBC's ''Meet the Press,'' said his
characterization of Iran's demands as unreasonable was the official
reaction of the Carter administration. He said he had discussed the
situation with President Carter before the televised interview. It was
not, however the official response to the message, which was being
considered in detail, Muskie said.
    The secretary of state said the Iranian demands were beyond Carter's
authority to fulfill. He said negotiating efforts would be continued
by the Carter administration, but that he did not expect the hostages
to be released during the holidays.
    ''It certainly is not going to happen by Christmas,'' he said. And,
Muskie added, it would be ''very difficult'' to resolve the crisis in
the month left to the administration.
    But he expressed the opinion that the hostages eventually would be
released by Iran.
    
ap-ny-12-21 1506EST
**********

a222  1225  21 Dec 80
AM-US-Hostages, 1st Ld-Writethru, a210-a211,750
Eds: updates throughout.
Laserphotos WX1,2
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - Secretary of State Edmund S. Muskie said Sunday
the United States cannot meet the ''unreasonable'' financial
conditions set by Iran for freeing the 52 American hostages.
    In a bleak assessment of the 414-day-old captivity of the Americans,
Muskie said it would be ''very difficult'' to conclude an agreement
before the administration leaves office on Jan. 20. ''It certainly is
not going to happen by Christmas,'' he said.
    Although Muskie's outlook was pessimistic, he said that ''this is
not the first time they've (the Iranians) suggested items that would
require us to go beyond the president's legal authority.''
    And, he added, ''I think these hostages will eventually be released.
I don't believe the Iranians can escape the costs that they are now
paying for holding the hostages.''
    Iran's latest terms were contained in a message received at the
State Department on Friday. They call for the U.S. government to
deposit $23 billion in Algeria's central bank as a guarantee that Iran
will recover all the deposits it had placed in western banks as well
as the wealth it claims was taken out of the country by the late Shah
of Iran.
    Some of the frozen assets are subject to claims filed against Iran
for losses suffered during last year's revolution.
    Muskie said Iran was setting terms with ''just the flick of their
fingers.''
    ''We regard the response as unreasonable and as requiring of us
actions beyond the power of the president to take,'' he said in an
appearance on NBC's ''Meet the Press.''
    He said the United States was willing to remove the economic
sanctions imposed by President Carter after militants overran the U.S.
Embassy in Tehran 13 1/2 months ago and took the Americans hostage.
    And, he said, the administration had offered to set up an
international claims commission to handle lawsuits against the
government in Tehran.
    But, Muskie said, the United States had no responsibility for
deposits that Iran placed in western banks before the embassy
takeover. Nor, he said, could the United States make cash guarantees
totaling billions of dollars that the deposits would not be seized to
satisfy claims.
    ''That's not our responsibility,'' he said.
    Muskie said he had discussed the situation with President Carter
before appearing on television. Therefore, Muskie said, his remarks
reflected the administration's ''official reaction'' although it was
not a formal response to Iran's message.
    Muskie said later there would be a U.S. reply once officials had
completed their analysis of Iran's terms.
    ''We're going to try to continue the effort to achieve the release
of the hostages,'' Muskie told reporters.
    ''One thing that we do want to make clear, if it isn't clear
already, is that they've asked us to go beyond the legal authority of
the president,'' he said in an interview following his television
appearance.
    ''We thought it was clear, but it may not be. So it may be we're
still involved in clarification.''
    Muskie stressed again that all the U.S. government could do to
resolve the claims dispute would be to help set up an international
commission. That, he said, ''is as far as we can go ... We think we've
offered them basically what we can.''
    Secretary of Defense Harold Brown also discussed Iran in an
appearance on the CBS program ''Face the Nation,'' saying the United
States could not accede to paying ''ransom ... money that was never in
this country'' to gain the return of the hostages.
    Asked if the new demands amounted to ransom, he replied, ''Anthing
that goes behind the status quo ... of the situation beforehand I
think could well be seen in that light.''
    In the demands made public in Tehran on Sunday, Iran is insisting
that the United States deposit $23 billion in the Algerian Central
Bank before the hostages are freed. Algeria has been acting as the
intermediary in negotiations between Iran and the United States.
    Before the demands were made public by the Iranian government,
Behzad Nabavi, the head of Iran's government commission negotiating
the hostages' release, said in Tehran that Iran had asked the United
States to deposit in excess of $19 billion - $9 billion to cover
Iranian assets frozen in U.S. banks after the hostages were seized and
$10 billion to cover the wealth of the late shah.
    The official, English-language text of the Iranian message confirmed
the $9 billion and $10 billion figures and showed that an additional
$4 billion was being requested in cash, ''or any other valid
guarantee acceptable to the above bank, as a guarantee for the bona
fide discharge of its (the U.S. government's) obligations.'' The
message did not define what was meant by ''obligations.''
    
ap-ny-12-21 1521EST
**********

n049  1259  21 Dec 80
BC-SAUDI-OIL(COX)
By JOSEPH ALBRIGHT
c. 1980 Cox News Service
    GHAWAR OIL FIELD, Saudi Arabia - When Saudi Arabia changes the level
of production in its oil fields, the first sound you may hear is a
crackle in Arabic over the mobile radio in an oil-company pickup
truck.
    I heard it while riding with Falah al-Motairi, a production crew
chief for the Saudi-owned Aramco oil company, as we were leaving here
for a drive across undulating sand plains toward the Abqaiq field.
    In the cab of the truck we heard the static-roughened voice of an
Aramco dispatcher tell the crew at Abqaiq to raise production levels
by another 20,000 barrels a day. Less than a minute later, the Abqaiq
crew confirmed the order with the Arabic equivalent of: ''Roger, we
can do it.''
    Judging from what I heard in al-Motairi's pickup and, more
importantly, in the offices of Saudi goverment officials in Riyadh,
it appears that the world can look forward to a continued
free-flowing oil policy in Saudi Arabia during the early months of
the Reagan administration.
    But that isn't to say President-elect Ronald Reagan will find Saudi
oil cheap, either in terms of dollars or political tradeoffs.
    And just how much oil flows is another matter subject to change.
    In the past, the Ministry of Petroleum has ordered production
cutbacks whenever the ''downhole'' pressure in Ghawar's 140-mile-long
oil reservoir began falling during a period of heavy production. This
year, no such ''technical problems'' have arisen, according to
informed sources.
    Indeed, the Saudi oil fields, which have been producing at close to
capacity since October, are showing astonishing resilience. Ghawar,
the largest in the world, is singlehandedly yielding some 7 million
barrels a day - one-fifth of all the oil that moves in the world
export trade. Slightly more than 3 million barrels more are flowing
every day from Abqaiq and other Saudi fields.
    In the capital city of Riyadh, political signals also appear to
suggest continuation of a valves-open policy, at least for a while.
    At the Ministry of Petroleum, Sheikh Ahmed Zaki Yamani said: ''Our
policy is of moderation as usual, and we will continue that policy.''
    All the portents suggest that final decisions on oil prices and
production levels remain in the hands of Crown Prince Fahd, in his
role as chairman of the Supreme Petroleum Council.
    Fahd, who rules as the Saudi chief of government under the loose
reins of his brother King Khalid, has long practiced a subtle form of
petroleum ''linkage'' aimed at influencing national security policy
in the United States and Europe. He will no doubt continue his oil
''linkage'' approach after Reagan takes office Jan. 20.
    Since 1945, the United States and Saudi Arabia have shared an
ill-defined ''special relationship'' that appears to exchange access
to Saudi oil for American security assistance.
    Its most recent illustration occurred just after the start of
Iran-Iraq war in September, when the Carter administration agreed to
an unexpected Saudi request for American Awacs radar planes to
strengthen Saudi air defenses.
    When the last details of a proposed press release about the Awacs
had been adjusted to meet Saudi requirements, a ranking Saudi
official is said to have told his American contact: ''Oh, by the way,
you can tell the president, we are increasing oil production by
700,000 barrels a day.''
     No one said the Awacs and oil production were linked. But as one
source put it: ''This was the Saudis' way of telling President Carter
that there was no world oil crisis in the offing.''
     What Fahd wants first from the Reagan administration, according to
informed sources, is equipment that would extend the range of the
F-15 fighters that the United States will begin delivering to Saudi
Arabia next September. The list of desired ''extras'' includes
long-range fuel tanks, tankers for mid-air refueling and racks that
can carry bombs.
    What Fahd wants second, these sources say, is to purchase Awacs
radar surveillance planes like the ones the U.S. Air Force is flying
over Saudi oil fields.
    Fahd is described as determined to persuade America to refrain from
supporting Israel in the continuing dispute concerning sovereignty in
Jerusalem and the Israeli-occupied West Bank of the Jordan River.
    Reagan can expect a violent reaction here if, for example, he were
to accede to Israeli pleas and move the American embassy in Israel
from Tel Aviv to Jerusalem.
    On the other hand, Fahd so far has not demanded that the United
States endorse his call for a Palestinian state on the West Bank as a
condition for receiving Saudi oil.
     As long as Reagan seems to the Saudis to be progressing toward an
eventual settlement of the Palestinian question, Fahd is unlikely to
impose such a condition. However, he could decide to make more direct
sales of Saudi oil to European nations that voice support for
Palestinian ''self-determination.''
     At a l979 Arab unity meeting in Bagdad, Yasir Arafat of the
Palestine Liberation Organization reportedly demanded of Saudi
Foreign Minister Prince Saud al-Faisal that Saudi Arabia restrict its
oil sales in order to pressure the West to force concessions from
Israel.
    Saud is said to have rebuffed Arafat's demand, and the two men are
reported to have exchanged insults. In the next three months, instead
of cutting oil production, Saudi Arabia raised it by 1 million
barrels a day.
Distributed by The N.Y. Times News Service
    
nyt-12-21-80 1600est
**********

a228  1309  21 Dec 80
AM-Iran-Hostages, SUB, a221,20
UNDATED, to clarify that interviews may be broadcast in Iran, SUB 9th
graf: -They may ... Christmas night.
    -They may be interviewed by Iranian television and the broadcast
aired in Iran Christmas night.
    -They are, 10th graf
    
ap-ny-12-21 1610EST
**********

a234  1337  21 Dec 80
AM-Reagan,220
Reagan 'Thinking About' Calling an Economic Summit Conference
    LOS ANGELES (AP) - President-elect Ronald Reagan said Sunday he is
''thinking about'' holding an economic summit conference soon after
assuming office next month.
    At a brief appearance after attending church near his Pacific
Palisades home, Reagan also refused to discuss Iran's latest offer -
already termed unreasonable by spokesmen for President Carter - to
release the 52 American hostages in Tehran as soon as the United
States deposits $23 billion for release to Tehran in Algerian banks.
    ''I'm not going to comment on that until it's my turn. Then I'll
comment,'' Reagan said, referring to after he takes office Jan. 20.
    Asked if he had made a decision on convening an economic summit
conference Reagan replied: ''I have been thinking about that, but I
haven't made any schedule on it yet.''
    Reagan did not say how many of his remaining five Cabinet selections
would be announced Monday, when a news conference for cabinet
appointments is scheduled.
    Asked if his Cabinet would be complete by Christmas he replied, ''I
don't know. We're going to come close.''
    Reagan also said he would be ''very happy to meet'' with United Auto
Workers union President Douglas Fraser, who has said he wants to talk
with the president-elect about problems facing the auto industry.
    
ap-ny-12-21 1638EST
**********

a236  1350  21 Dec 80
AM-Brown-Iran-Defense,280
Brown Says U.S. Could Not Accede to ''Ransom''
    WASHINGTON (AP) - Defense Secretary Harold Brown said Sunday the
United States could not accede to paying ''ransom'' to have the
American hostages freed by Iran but said efforts to have them released
would continue.
    Speaking on CBS' ''Face the Nation'' program, Brown said there were
some actions the Iranians asked that ''a president does not have the
authority to do, that would be illegal for him to do,'' but denied
the dialogue between Tehran and Washington had run into a stone wall.
    ''I would draw a distinction between returning the financial
situation to what it was . . . before (Iranian) assets were blocked
(by the United States) . . . and paying a ransom, paying money that
was never in this country and was not in Iranian possession,'' Brown
declared.
     Asked if the Iranians indeed were asking ransom to free the
hostages, Brown replied, ''Anything that goes beyond the status quo
. . . of the situation beforehand I think could well be seen in that
light.''
    In the newest demands, made public by the Iranian government Sunday,
Iran is insisting that the United States deposit $23 in the central
bank of Algeria, which has been acting as an intermediary between Iran
and the United States.
    This is understood to include $9 billion to cover frozen assets in
western banks and $10 billion to cover money Iran claims the late Shah
Mohammad Reza Pahlavi took from the country.
    Also included is $4 billion, ''or any other valid guarantee
acceptable to the above bank, as a guarantee for the bona fide
discharge of its (the U.S. government's) obligations.'' The message
did not define what was meant by ''obligations.''
    
ap-ny-12-21 1651EST
**********

a242  1427  21 Dec 80
AM-War Rdp,300
Iran Claims Iraqis Driven Back
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran launched twin counter-offensives at both
ends of its 300-mile battlefield front with Iraq and claimed Sunday
its forces had driven the invading Iraqis back in the western
highlands and the southwestern province of Khuzistan.
    The attacks appeared to involve the heaviest ground fighting in the
past two months of the 3-month-old Persian Gulf war.
    Military communiques broadcast by Iran's Tehran Radio said 130 Iraqi
soldiers were killed and 21 were captured in the attacks. They listed
Iranian losses as 10 dead.
    In Baghdad, Iraq claimed 236 Iranian soldiers and 38 Iraqis were
killed in stiff fighting on the northern rim of the warfront. It also
announced new bombardments of the Iranian oil refinery city of Abadan
at the southern tip of Khuzistan province.
    The reports could not be verified because Western reporters are
barred from the battlefront by both countries. Western military
analysts said they doubted there would be a significant changes in the
battle lines in the coming months because of snow in the western
highlands and rains in Khuzistan's marshland.
    Tehran broadcasts said Iran's western forces concentrated their
counter-offensive in the foothills of the Zagros Mountains, which
tower over the main highway that runs from the border 100 miles west
to the Iraqi capital of Baghdad.
    Iran's government news agency, Pars, said that ''crushing blows''
were dealt the Iraqis and that retaliatory artillery fire killed an
Iranian family.
    It conceded the refinery town of Abadan was being shelled fire but
claimed the Iraqis were forced to retreat about four miles from
Susangerd, a strategic highway town 80 miles to the north. If
accurate, the retreat would represent the first major change in battle
lines in nearly eight weeks.
    
ap-ny-12-21 1728EST
**********

a251  1517  21 Dec 80
AM-US-Hostages, SUB, a222,50
WASHINGTON, to update with U.S. officials working on response to
Iran, SUB 14th graf: Muskie said ... Iran's terms.
    Muskie said later there would be a U.S. reply once officials had
completed their analysis of Iran's terms. Deputy Secretary of State
Warren Christopher, who is handling the day-to-day negotiations with
Iran, worked on a response to Iran for five hours at the State
Department with other U.S. officials Sunday.
    ''We're going, 15th graf
    
ap-ny-12-21 1818EST
**********

n062  1521  21 Dec 80
AM-IRAN-U.S.
Muskie Calls Iranian Demand for $23 Billion Deposit 'Unreasonable'
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Secretary of State Edmund S. Muskie said Sunday that
Iran's demand that the United States deposit $23 billion in Algeria
to secure the release of the hostages was ''unreasonable'' and went
beyond the legal powers of the American presidency.
    In what he called an ''official reaction'' to the latest Iranian
terms for the release of the 52 Americans, Muskie held out virtually
no hope that the Carter administration could secure freedom for the
hostages before leaving office Jan. 20. The terms were published in
Tehran Sunday after being sent here Friday.
    It was that hope, admittedly slim, that drove State Department and
other officials in recent weeks to make an intense diplomatic effort
to bring about the resolution of the crisis that has obsessed the
administration for its last year in office. Now officials concede
that the situation is deadlocked.
    Muskie said that the United States had proposed to Iran, through
still unpublished communications, that in return for the release of
the Americans, it would seek to return the situation to where it
existed Nov. 4, 1979, the day the American Embassy in Tehran was
seized.
    This meant, he said, that punitive actions taken by the United
States would be lifted, such as the freeze on assets, but that the
Iranians would have to be responsible for various claims against
those funds pending in American courts. He said that the Iranian
request for $23 billion in guarantees - $10 billion for the late Shah
of Iran's property and $13 billion for Iran's frozen assets - was
''unreasonable and requiring of us actions beyond the power of the
president to take.''
    What made the situation, he said, ''frustrating and at times
agonizing'' was that the United States, as a result of the give and
take since Nov. 2 when Iran's original four conditions were made
public, was ''under the impression'' that Iran understood the limits
beyond which the United States could not go.
    Speaking after a phone conversation with President Carter, Muskie
said that he still believed the hostages, who have been in
confinement for nearly 14 months, would eventually be freed.
    Privately, other senior officials were even more gloomy and
disappointed than Muskie appeared to be in his appearance on the
NBC-TV news program ''Meet the Press.'' Some officials charged the
Iranians with bad faith and said that the United States should not
dignify the demand for the $23 billion in guarantees with a
substantive response.
    Saturday, officials said that the United States was considering the
possibility of suspending discussions with Iran and leaving the
matter to the incoming Reagan administration.
    After Sunday's discussions within the administration, however,
Muskie indicated that the United States would continue through the
Algerians to try to persuade the Iranians to drop their
''unreasonable'' demands.
    But he said the nature of the response had not been worked out yet,
even though the basic American reaction ''is clear.''
    Other officials said that Deputy Secretary Warren M. Christopher
conferred for five hours Sunday morning with the top experts on Iran
to chart the American approach. They said that there would not be an
early response to Iran, and that it was likely the United States
would confer with the Algerian intermediaries to learn more about
Iran's thinking before deciding what to do.
    In describing what the United States had been willing to do, Muskie
made these points:
    - The United States would have tried to release the assets that were
frozen in November 1979, and there were some assets, probably some
few billion dollars, ''that could be made available to them almost
immediately'' because they were free of court attachments. He said
the other assets were subject to claims ''that have to be resolved in
one way or the other.''
    - Iran was told that the United States would join with it in setting
up an international claims settlement procedure to help resolve the
claims legally. This would have required Iran to reestablish its
relations with American and Western banks to which they were in
default because of the freeze.
    Both Muskie and Defense Secretary Harold Brown, appearing on
CBs-TV's ''Face the Nation,'' were asked about the possibility that
the United States might lose patience with a diplomatic effort and
resort to force.
    Brown seemed to discourage such speculation but would not flatly
rule it out, a position he has consistently held. Muskie said the
United States was not close to a point where military action should
be considered.
    He said that at this point ''in our negotiations with Iran we are
within reach, if they could but see it, of a solution to the problem
which would eliminate any such possibility, which would make possible
the return of the hostages, and would make possible the beginnings of
a meaningful process of bringing Iran back into the community of
nations in a dignified, responsible way.''
    Several officials said Sunday that by publishing the full text of
their latest demands, Iranian authorities made it considerably more
difficult for themselves to compromise or drop any demands.
    They also said that they believed the Iranian political situation is
such that even though most responsible Iranians have indicated a
desire to end the crisis, the hardliners in the clergy and others
were able to frustrate a breakthrough by insisting on demands that
leave little room for compromise on financial details.
    
nyt-12-21-80 1822est
**********

a257  1559  21 Dec 80
BC-Iran Text-Excerpts, 2 Takes,510-1,000
    NICOSIA, Cyprus (AP) - Following are excerpts from the text of the
response of the Islamic Republic of Iran to the United States
concerning conditions for the release of the 52 American hostages. The
translation is by the official Iranian news agency Pars, which
distributed the text here:
    ... The U.S. declaration on non-intervention in Iran (should read)
... as follows:
    ''Non-intervention in Iran. The government of the United States of
America hereby pledges not to intervene, from now on, directly or
indirectly, militarily of politically, in the internal affairs of the
Islamic Republic of Iran.''
    ... The U.S. government ... will also take the following measures:
    A. The return of 9,069 million dollars of Iranian assets plus
relevant interest at the standard rates, as well as the return of the
gold belonging to Iran, deposited with the Federal Reserve Bank of
New York, and deliver the above to the Central Bank of Algeria before
the release of the 52 Americans, hostages of the Iranian nation.
Immediately upon the release of the 52 Americans, these assets ...
will be placed at the disposal of the Iranian government by the
government of Algeria. ...
    B. With regard to the other assets and funds of Iran at the disposal
of, or under attachment by the American government, American
nationals or institutions inside or outside the United States, the
U.S. government, in pledging to return all such assets and funds, will
deposit with the Central Bank of Algeria a guarantee equal to four
billion dollars in cash, or any other valid guarantee acceptable to
the above bank, as a guarantee of the bona fide discharge of its
obligations.
    Immediately upon the release of the 52 Americans the aforementioned
assets and funds will be placed at the disposal of representatives of
the government of the Islamic Republic of Iran for transfer to Iran.
    On the transfer of each part of the aformentioned assets and funds,
an amount equal in value to such transfers will be deducted from the
amount of the guarantee deposited with the Central Bank of Algeria.
    C. The U.S. government will make the necessary commitment to respond
to any kind of claims for losses arising from the Islamic Revolution
of Iran to American nationals, American government, organizations and
institutions, but not due to decisions adopted by the Islamic
government of Iran. ...
    D. For the purpose of comparing and checking the list of Iranian
assets and funds existing within the jurisdiction of the U.S.A. or at
the disposal of the American government, nationals and institutions
outside the U.S.A. and with due regard to the fact that the agents of
the deposed shah, before the downfall of the Pahlavi regime, have
destroyed many of the documents relating to the Iranian assets and
funds in the U.S.A., ... the U.S. government will ... provide the
Iranian government ... with a detailed list of all the assets and
funds of the Islamic Republic of Iran and Iranian institutions. At the
same time, the U.S.A. will undertake to immediately place at the
disposal of the government of the Islamic Republic of Iran all Iranian
assets and funds which may not have been stipulated in the present
lists, but may come to light at a future date.
    MORE
    
ap-ny-12-21 1900EST
**********

a258  1609  21 Dec 80
BC-Iran Text-Excerpts, 1st Add,490
NICOSIA: future date.
    ... Concurrent with all the aforementioned steps to be taken by the
U.S. government, the Iranian government pledges to take the following
steps:
    A. ... The government of the Islamic Republic of Iran undertakes to
pay the bona fide loan installments on loans and credits contracted
in the past, and hereby authorizes the Algerian government to keep the
amount of one billion dollars from the aforementioned amounts as a
guarantee for the delayed installments on the aforementioned loans,
and after reviewing each loan agreement, the agreed sums be paid to
the American banks. After settlement of outstanding debts, the balance
will be returned to Iran.
    B. ... The Iranian government accepts that the claims of American
entities and citizens against Iran, and the claims of Iranian
nationals and institutions against American nationals and
institutions, be settled, in the first stage through agreement between
the parties, and failing such agreement, through arbitration
acceptable to the respective parties.
    For the purpose of repaying the above debts, the government of the
Islamic Republic of Iran will deposit with the Algerian government an
initial cash guarantee equal to one billion dollars, or any other
guarantee acceptable to the Central Bank of Algeria. In repaying such
debts, this guarantee will be adjusted in such a way that it will
never drop below 500 million dollars.
    It should be noted that the above guarantee will not include claims
arising from the results of the seizure of the former U.S. Embassy in
Tehran, results arising from the hostage taking by the Iranian
people, and the reactions of the U.S. government, as well as claims
originating from the effects of the Islamic revolution of Iran.
    ... The U.S. government will also determine all the properties and
assets of the deposed shah and his close relatives in the U.S.A. as at
3 November 1979 and notify this to the government of the Islamic
Republic of Iran within the period stipulated above. ... The U.S.
government pledges to provide information on the amounts, origin and
destination of the properties and assets of the deposed shah and his
close relatives transferred out of U.S. jurisdiction ...
    The U.S. government to deposit with the Central Bank of Algeria a
cash guarantee equal to 10 billion dollars, or any other guarantee
acceptable to the Algerian government, which is a percentage of the
properties of the Iranian nation plundered by the deposed shah and his
relatives, as a guarantee of the bona fide discharge of its
obligations ... In case the U.S. government (fails to carry out its
obligations) ... the Algerian government will place at the disposal of
the Iranian government an amount from the guarantee equal to the loss
sustained from any one case or a number of cases of the
aforementioned eventualities. The amount of loss will be determined by
arbitration acceptable to the parties.
    ... After all the conditions stipulated in this memorandum have been
carried out, and officially confirmed by the government of the
Algerian People's Democratic Republic, then the 52 Americans, hostages
of the Iranian nation, will be released.
    
ap-ny-12-21 1910EST
**********

n065  1650  21 Dec 80
AM-IRAN 2takes
Iran Demands $23 Billion in U.S. 'Guarantees' for Hostages' Return
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN - Iran is demanding a package of some $23 billion in
''guarantees'' for the recovery of its frozen assets in the wealth of
the late Shah Mohammad Reza Pahlavi in exchange for the release of
the 52 American Embassy hostages.
    ''It is very easy for these conditions to be met by the United
States,'' Minister of State for Executive Affairs Behzad Nabavi said
at a news conference Sunday morning.
    The text of Iran's response to the United States, released here
Sunday, showed that Iran was asking that the United States deposit
roughly $10 billion in the Central Bank of Algeria for the return of
identified frozen assets, $4 billion more as a ''guarantee'' against
unidentified assets and $10 billion as a kind of one-year bond
against identification and recovery of the shah's fortune. But Iran
would take $1 billion from the U.S. deposits and add $1 billion from
Iranian deposits, to form a fund to pay damages claimed by American
parties as agreed under joint arbitration.
    In addition, the statement appeared to indicate that the United
States should assume the responsibility for damages to American
companies and individuals during the Iranian revolution, which could
run into hundreds of millions of dollars more.
    The demand for the deposit of the multi-billion ''guarantees'' in
Algeria, it was learned here, was a new element in the lengthy
negotiations over the return of the hostages.
    Nabavi's news conference and the release of the text of the document
appeared to reflect the feeling of confidence on the part of the
Islamic traditionalist political forces who drew up the package that
they had, in fact, found a way to end the hostage crisis.
    Hours later, Secretary of State Edmund S. Muskie, in a television
appearance in the United States, rejected the proposal as
''unreasonable'' and unacceptable.
    The shape of the package drawn up by the parliamentary group
belonging to the Islamic Republican Party - particularly the addition
of a $23 billion ''guarantee'' deposit - appeared to stem from three
major factors.
    The first factor is the profound distrust of the United States -
portrayed unceasingly here as ''the great satan'' - increased by the
fact that they are dealing with an administration about to leave
office.
    ''How can we rely on just the signature of Mr. Carter to release the
hostages,'' Nabavi said at his news conference in explanation of the
demand. ''We are telling him to give us a practical guarantee of your
words. It is not a trade, it is not a bribe.
    ''We have said that is fine, but for everything you have said, give
us a guarantee so that we can be sure you are telling the truth, that
you keep your word, so that in case tomorrow these gentlemen leave
and the policy of the United States changes with the newcomers, we
will not have played with the wealth of the nation,'' he said.
    The second is the deep political need of the religious
traditionalists not to be seen to be compromising with America. For
more than a year, the Islamic Republican Party adherents have used
the hostage issue to batter their opponents, the liberals around
President Aboulhassan Bani-Sadr.
    Now, having assumed responsibility and apparently eager to resolve
the crisis, which is of little further domestic use to them, they are
to a degree captives of their past political maneuvers. Nabavi and
Prime Minister Mohammed Ali Rajai have both bristled over any
suggestion that they are compromising.
    Third, the religious group is proceeding from a perspective of
American political procedures conditioned by their own experience,
largely limited to the unchecked dictatorship of the shah's day, and
their ideological view of the United States government as a single,
unified, malignant and conspiratorial force capable of accomplishing
anything. Concepts of legal limits and divisions of power are totally
alien or dismissed as mere fable.
    The more Westernized liberal group has been completely isolated from
the negotiations since the clerically-dominated parliamentarians took
over in November.
    ''They are completely ignorant,'' one key liberal said of the men
now dealing with the hostage issue. ''You cannot explain these things
to them,'' added another, ''especially not to the imam himself.''
    The publishing of the proposal - and the obtaining of the approval
of Ayatollah Ruhollah Khomeini, the revolutionary leader, or iman,
for their position - would appear to make it even more difficult for
the religious group to modify its demands in the future.
    As outlined in the text of the Iranian reply, released by the state
Pars news agency, the proposal calls for the United States to return
$9,069,000,000 in nine separate amounts of frozen assets - plus
interest - and 1,632,827 ounces of gold, or roughly another billion
dollars. This is to be done through deposits in the Central Bank of
Algeria.
    In addition, the United States is to deposit $4 billion as a
guarantee of locating other Iranian funds in the United States. This
would add up to the $14 billion figure that is the largest estimate
of frozen funds. The United States is to provide ''a detailed list of
all the assets and funds of the Islamic Republic of Iran and Iranian
institutions'' within a week.
    (MORE)
    
nyt-12-21-80 1951est
**********

n066  1658  21 Dec 80
AM-IRAN 1stadd
NYT TEHRAN: a week.
    The proposal also contains a clause which appears to make the United
States liable for claims by American companies or individuals for
damages suffered during the Iranian revolution up to the time the
revolutionary government took office on Feb. 11, 1979. Bell
Helicopter and numerous oil-drilling concerns have filed suits
totaling hundreds of millions of dollars for such damages.
    ''The U.S. government will make necessary commitments to respond to
any kind of claims for losses arising from the Islamic revolution of
Iran to American nationals, American government organizations and
institutions, but not due to decisions adopted by the Islamic
government of Iran,'' the clause said.
    Iran would take $1 billion from the American deposits and add $1
billion of Iranian deposits to form a revolving fund to be used to
pay off claims by American companies, banks and individuals as agreed
under joint arbitration. This would remove the claims from the court
process where much of the Iranian assets in the United States have
been tied up. This fund would be kept at a level of at least $500
million, the document said.
    On the issue of the shah's wealth, the document calls for the United
States to deposit $10 billion in the Algerian Central Bank for one
year period as a ''guaranty'' against recovery. The United States was
required to declare a freeze on the shah's fortune, similar to that
placed on Iranian assets after the embassy's seizure and order all
relavent information given to the Treasury Department, under penalty
of fine or imprisonment, within 30 days.
    In case the American government or courts fail to turn over
identified portions of the shah's fortune, the document said, the
equivalent amount would be forfeited from the $10 billion guaranty.
Whatever amount of the $10 billion was not identified and attached
after one year could be returned to the United States, the document
said.
    The document also called on the United States to add te phrase
''from now on'' to its declaration that it would not interfere in the
interenal affairs of Iran.
    At his news conference, Nabavi appeared to shrug off questions as to
what would happen if the United States turned down the Iranian reply.
    ''It's no problem, we'll keep them if we have to for 10 years,'' he
said at one point. ''Don't worry, their food, their clothing, their
housing, everything is prepared for them.''
    Pressed on whether the issue would be returned to the parliament if
the current offer was refused, Nabavi said:
    ''I don't think there will be any reason to discuss it again in the
Parliament. If it is refused, they'll go on trial, because this is
not bargaining here. What we have asked for is a just demand.''
    At another point, he said, ''we have taken them to very good places,
better than they were in the past. We have prepared for them
rationing cards for sugar, for cooking oil and so on for one or two
years. From our point of view it is no problem even if they stay with
us for years. We will take care of them, and if they have to be
turned over to the courts, if that is necessary, it is no problem for
us either.''
    Nabavi said the hostages were living in hotels and would be
interviewed by Iranian television on Christmas ''and you will see how
healthy and happy they are.'' Later, student militants told reporters
the hostages have been scattered around little-used hotels in
downtown Tehran.
    ''The answer of the United States is either yes or no,'' Nabavi
said. ''What we have asked is not against the laws of the United
States, it is within the capability of the United States government
and the judiciary forces.
    ''They can do it if they want. If they do it, in 24 hours they will
get the hostages,'' Nabavi said. ''It is three guaranties and one
written promise to be given to the Algerian government and the
hostages will be transferred to the bus, or even the airplane, and
they will go to their own country.''
    ''Of course, at their own expense,'' he added in a joking aside.
    
nyt-12-21-80 2000est
**********

a271  1711  21 Dec 80
AM-Shariati,260
Iranian Student Acquitted Of Murder Charge
    DENVER (AP) - An Iranian student has been acquitted of murder and
assault charges in the death of a Denver teen-ager and the wounding of
two other youths who authorities say were seeking revenge for the
taking of the American hostages in Iran.
    Afshin Shariati was freed Saturday after a Denver District Court
jury acquitted him in the slaying of Paul Moritzky, 15, and the
wounding of two other teen-agers Nov. 11, 1979, a week after the
seizure of the U.S. Embassy in Tehran.
    Walter Gerash, Shariati's attorney, called the shootings ''an
American tragedy. We all feel for the Moritzky family and think it was
a tragedy.
    ''Afshin responded in fear and we presented the case that way,'' he
said.
    Moritzky, Michael Lopez and Steve Roane smashed a window in
Shariati's apartment with baseball bats apparently to seek revenge for
the taking of American hostages, trial testimony indicated.
    Shariati admitted shooting the teen-agers with a .30-caliber rifle,
but said he did so to protect his home from what he thought was a
bomb attack. He said he thought a Molotov cocktail had been hurled
into his living room, and he feared another attack.
    Shariati, a student at Arapaho Community College near Denver, said
he could not see well enough in the night to aim and that he thought
he was shooting at the getaway car containing the people who attacked
his home.
    He was charged with second-degree murder and with attempted
second-degree murder and assault.
    
ap-ny-12-21 2011EST
**********

a272  1717  21 Dec 80
AM-Runcie-Hostages,320
Archbishop Renews Appeal For Christmas Visit
With Iran Hostages
    LONDON (AP) - The Archbishop of Canterbury renewed his appeal Sunday
to Iran's revolutionary leader Ayatollah Ruhollah Khomeini to allow a
Christmas visit to four Britons, including three Anglican
missionaries, detained in Iran since August.
    ''On simple grounds of humanity and on grounds of common faith in
God, will he (Khomeini) now respond to us and meet this simple
request?'' the archbishop, Dr. Robert Runcie, said in an interview
with the British Broadcasting Corp.
    Iranian authorities have referred to the Britons, along with the 52
American hostages, as ''spies.'' The Britons are Jean Waddell, 58,
former secretary to the Anglican bishop of Iran; Dr. John Coleman and
his wife Audrey, both medical missionaries, and businessman Andrew
Pike.
    Runcie, who heads the worldwide Anglican Communion, said he wrote to
Khomeini Nov. 27, asking that a member of his staff be allowed to
visit the four at Christmas. A followup telegram was sent last week
but there has been no reply, Runcie said.
    He said a reservation has been booked on a Christmas Eve flight to
Tehran in case there is last-minute approval for the visit.
    ''We are not concerned with the political questions, nor are we
agents of any government,'' Runcie said. ''This is simply a request on
humanitarian and religious grounds.''
    Last month, Foreign Secretary Lord Carrington referred for the first
time to the Britons as ''hostages.''
    Miss Waddell is being held in Tehran's Evin Prison, but the
whereabouts of the others has not been announced.
    There has been no word on any possible Christmas visit by U.S.
clergymen to the American hostages. Iran's Executive Affairs Minister
Behzad Nabavi said Sunday at a news conference in Tehran that the
Americans may be interviewed by Iranian televison and the broadcast
aired in Iran Christmas night.
    Last Christmas, the Iranians allowed three American clergymen to
visit Tehran and conduct religious services for the hostages.
    
ap-ny-12-21 2018EST
**********

n074  1804  21 Dec 80
BC-IRAN-EXPLAIN 2takes
c. 1980 N.Y. Times News Service
    WASHINGTON - The $24 billion that Iran wants the United States to
send or ''guarantee'' to Algeria to free the 52 American hostages
would vastly exceed the value of all the frozen Iranian assets plus
the property of the late shah known to be in the United States and in
American banks overseas. It would amount to more than $460 million
per hostage.
    Twenty-four billion dollars is more than three times the annual
foreign aid budget of the United States, and more than one-third of
the annual sales of General Motors.
    The detailed Iranian proposals for release of the hostages made
public Sunday include a requirement that the United States deliver to
the Algerian government before the hostages are released about $14
billion that Iran says represents the value of Iranian gold and other
assets frozen ''or under attachment by the American government.''
    They also call for the United States ''to deposit with the central
bank of Algeria a cash guarantee equal to $10 billion, or any other
guarantee acceptable to the Algerian government, which is a
percentage of the properties of the Iranian nation plundered by the
deposed shah and his relatives.''
    The Treasury Department estimated in November 1979 that the frozen
Iranian assets amounted to ''more than $8 billion.'' Treasury
officials have refused to update this estimate publicly even though
they have required all American banks and others holding frozen
Iranian assets to provide a detailed accounting of them. Private
estimates of the value of the frozen Iranian assets have ranged as
high as $13 billion.
    The United States government has published no estimates of the value
of the property of the late Shah Mohammad Reza Pahlavi in the United
States and has taken no public steps to locate that property, despite
an Iranian request on Dec. 10 for ''a complete list of the properties
and assets of the deposed shah and his close relatives.''
    President Carter has not frozen the assets of the shah's family or
other Iranian individuals, either in the United States or in American
banks overseas. The Iranian message made public Sunday included a
demanded that the United States ''continue the attachment'' of the
properties of the late shah and his family, which apparently means
that Iran wants the president to freeze those properties as a first
step towards their eventual return to Iran.
    Iranian estimates of the amounts taken from Iran by the shah and his
family have ranged as high as $32 billion, but a spokesman for the
family has said that the shah's estate is worth less than $200
million. It is not known how much of this property is in the United
States.
    The Iranian message said that Iran had ''no complete information''
on the wealth of the shah and his family but asserted that ''a large
part'' of it remained in the United States.
    The $10 billion demanded by Iran to guarantee the return of the late
shah's wealth appears far greater than the highest estimates
previously made even by American lawyers representing the Iranian
government. It was unclear whether the secret Treasury Department
estimates of the value of the frozen Iranian assets were consistent
with the detailed listing of the assets in the Iranian message.
    With regard to the frozen assets, the Iranian message demanded that
the United States ''deliver'' to Algeria assets worth about $10
billion, which it said were frozen in the hands of various American
banks, other companies and the government. It also demanded that the
United States provide the central bank of Algeria with a $4 billion
''guarantee'' in cash or otherwise pledging return of ''other assets
and funds of Iran at the disposal of, or under attachment by,'' the
government and private American companies and persons.
    The Iranian message broke down the $10 billion figure in a list that
corresponded roughly to the assets described in the Treasury
Department's listing of ''more than $8 billion'' in frozen assets in
November 1979. But the reference to $4 billion worth of ''other
assets and funds'' was puzzling, and Thomas G. Shack Jr., a
Washington lawyer representing the government of Iran, said Sunday
that he did not know what it referred to.
    (more)
    
nyt-12-21-80 2105est
**********

n075  1809  21 Dec 80
BC-IRAN-EXPLAIN 1stadd
NYT Wash: referred to.
    The $10 billion worth of assets listed in the Iranian message
included about $4 billion in deposits of the Bank Markazi, the
Iranian central bank, with American banks in London and Paris; about
$875 million in deposits by the Bank Markazi, other Iranian banks and
the National Iranian Oil Co. in commercial banks in the United
States; about $1 billion worth of gold, $1 billion worth of United
States Treasury notes and $269 million in cash deposited by the Bank
Markazi with the Federal Reserve Bank in New York; about $800 million
deposited by Iran in the United States government's Foreign Military
Sales Trust for military equipment paid for but not delivered to
Iran; and about $2.1 billion in ''funds relating to oil sales.''
    The large deposits by the Bank Markazi in American banks were a
legacy of the shah's rule, during which much of Iran's burgeoning
trade in oil, military supplies and other products was handled by
American commercial banks. Shack said he did not know why such large
amounts were on deposit with the Federal Reserve Bank.
    The ''funds relating to oil sales'' apparently refers to oil that
Iran had delivered but had not been paid for before President Carter
cut off oil imports from Iran and froze Iranian assets last November.
    Shack said that statements by other American lawyers representing
Iranian interests recently had a ''tendency to mislead'' to the
extent that they suggested that Carter clearly had legal power to
transfer the frozen Iranian assets to Algeria or anywhere else in the
world.
     Shack said he agreed in theory that the president had such power.
But he noted that any presidential order that the assets be
transferred out of the United States would doubtless be challenged in
court by some of the companies and individuals that have brought more
than 300 lawsuits claiming more than $7 billion for property
confiscated, contracts broken and other actions by the Iranian
government.
     Other lawyers have said that there was no clear precedent for
President Carter to order the frozen assets transferred out of the
country and that any such action would raise serious constitutional
problems.
    
nyt-12-21-80 2110est
**********

n077  1821  21 Dec 80
AM-IRAN 1stld-pickup2dgraf a065
Eds. Following makes figure ''some $24 billion' sted ''some $23
billion.''
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN, Iran - Iran is demanding a package of some $24 billion in
''guarantees'' for the recovery of its frozen assets and the wealth
of the late shah in exchange for the release of the 52 American
hostages.
    ''It is very easy etc. picking up 2dgraf.
    Sub for 8thgraf (to change figure.)
    The shape of the package drawn up by the parliamentary group
belonging to the Islamic Republican Party - particularly the addition
of a $24 billion guarantee deposit - appeared to stem from three
major factors.
    The first etc. picking up 9thgraf.
    
nyt-12-21-80 2122est
**********

n080  1846  21 Dec 80
AM-IRAN-HOSTAGES
Eds. The following is on the New York Times Page One dummy. Some of
the material duplicates portions of the AM-IRAN story moved earlier.
c. 1980 N.Y. Times News Service
    TEHRAN, Iran - An Iranian Cabinet minister said Sunday that the
American hostages were staying in hotels around Tehran and would be
interviewed on Iranian television on Christmas Day.
    ''We have taken them to very good places, better than they were in
in the past,'' Behzad Nabavi, the minister of state for executive
affairs, said at a news conference.
    ''We have prepared for them rationing cards for sugar, for cooking
oil and so on for one or two years,'' he said. ''From our point of
view it is no problem even if they stay with us for years.''
    Iranians have been rationed on such staples as sugar and cooking oil
because of the war with Iraq.
    ''It's no problem; we'll keep them if we have to for 10 years,'' the
minister said. ''Don't worry; their food, their clothing, their
housing, everything is prepared for them.''
    The hostages' location has been unknown since they were reportedly
moved from the United States Embassy after the unsuccessful United
States rescue mission last April. They have been held for more than
13 months.
     Navabi said that the hostages were ''well treated and content,''
and added that they would be interviewed for Iranian television on
Christmas night. ''You will see that they are hale and hearty,'' he
said.
    At the same time, representatives of the Vatican and the Swiss
government are trying to arrange for religious services for the
American hostages at Christmas.
    Mons8NOR Afnipini, the papal nuncio here, said that he had
written a note to the Iranian foreign ministry requesting permission
to visit the hostages on Christmas Day. He said efforts were also
being made for another Tehran-based clergyman, the Rev. Hans Joachim
Bernbeck, a German Lutheran, to visit the hostages.
    Bugnini said that the Swiss Embassy had also asked Iranian
authorities to arrange for the clergymen to visit the hostages.
    
nyt-12-21-80 2147est
**********

n085  1925  21 Dec 80
BC-SKED-12-22
    The FIELD NEWS SERVICE daily report will resume following this
opening budget. The editors may be reached at 312 321-2801.
    
    MONDAY, DEC. 22, 1980
    
    
    BEHIND THE TOP HEADLINES
    
    WASHINGTON (Healy - Boston Globe - MONDALE) - Vice President Walter
Mondale says economic factors, some beyond the control of any
president, cost Jimmy Carter and himself the election and that ''the
future of progressive government is grim indeed.'' (950)
    
    WASHINGTON (Rousmaniere - Baltimore Sun - CHRYSLER) - A bare six
months after he announced that Chrysler Corp. would be ''back in the
black'' by the end of the year, a desperate Lee A. Iacocca will
travel to Washington this week to ask for more government life
supports. (1,000)
    
    
    INTERNATIONAL
    
    MOSCOW (Wade - Telegraph - KOSYGIN) - Sources say former Soviet
Premier Alexei Kosygin died while pulling up his shirt for a medical
check on his heart at a clinic reserved for Kremlin leaders. (300)
    
    PESHAWAR, Pakistan (Loudon - Telegraph - AFGHAN) - A new wave of
Afghan refugees, many of them starving and emaciated, is streaming
across the snow-capped Hindu Kush into Pakistan, indicating that with
the first anniversary of the Soviet occupation coming up Saturday
there is intense fighting between Soviet forces and Moslem
guerrillas. (950)
    
    MANAMA, Bahrain (Copps - Telegraph - WAR) - The prediction that the
Persian Gulf conflict between Iraq and Iran is likely to become a
drawn-out war of attrition was given added support Sunday by reports
that Iraq is setting up a civilian administration for captured
Iranian lands, including the port of Khorramshahr. (350)
    
    WASHINGTON (Patterson - Boston Globe - MEXICO) - NEWS ANALYSIS:
President-elect Ronald Reagan's trip to Mexico on Jan. 5 to meet with
President Jose Lopez Portillo is as symbolic as it may be
substantive. The brief meeting is designed to reassure Mexico and
other Latin American countries that they will not be neglected in
U.S. foreign policy. (850)
    
    MUNICH (D'Adesky - Sun-Times - GERMAN) - ''What has happened is not
only awful, it is a breakdown; it is a catastrophe,'' says West
Berlin Mayor Dieter Stobbe, characterizing the reaction in West
Germany to the recent steps by East Germany to reduce contacts with
the West. (1,600)
    
    
    DOMESTIC
    
    UNDATED (Cohen - Boston Globe - PRESCHOOL) - A study shows that a
group of poor black children with low IQ scores did better in school,
had lower delinquency rates and better job prospects because of their
pre-school training than their counterparts without that special
attention. (700)
    
    
    COMMENTARY
    
    UNDATED (Royko - Sun-Times - ROYKO) - It may be simply horrid to
manufacturers of designer jeans that there are conterfeits on the
loose. But why not buy the counterfeits? As long as your bottom is
making a social statement, why not save a few bucks and make the
statement at the same time. (1,000)
    
    UNDATED (Seiden - Baltimore Sun - SEIDEN) - Through trial and
tribulation, poor family comes to believe that God works in strange
and mysterious ways. Sisters and brothers have gone through some very
hard times and didn't think they would make it, but they did. (950)
    
    
    BUSINESS
    
    UNDATED (Darby - Sun-Times - DARBY) - Housing recession created by
the government ripples through the economy, but Masonite has a plan
to avoid the worst of the sting. (750)
    
    UNDATED (Jedlicka - Sun-Times - THEFTS) Car theft is on the rise,
while police success in solving the crimes is on the decline. One
factor is the chop shop, which thrives selling parts at low prices
compared with the usual 400 percent markup on replacement parts. (600)
    
    ENDIT SKED
    
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**********

n088  1948  21 Dec 80
BC-WAR-12-22
     EDITORS: The following is from the London Telegraph and is for use
only in the United States and Canada.
     By Alan Copps
     Daily Telegraph, London (Field News Service)
     MANAMA, Bahrain-The prediction that the Persian Gulf conflict
between Iraq and Iran is likely to become a drawn-out war of
attrition was given added support Sunday by reports that Iraq is
setting up a civilian administration for captured Iranian lands,
including the port of Khorramshahr.
    This news follows a week which saw a barrage of cease-fire appeals
and mediation efforts, none of which appears to have made much
impression on the combatants.
    Nor is there any recent sign of major military changes along the
300-mile front. Snow in the foothills of the Zagros mountains and
rain elsewhere earlier in the cold season at first produced a lull in
the fighting, but over the weekend, as the conflict entered its 14th
week, there were signs of renewed fighting in local battles.
    In two days of fighting around a military post in the province of
Kermanshah, Iraq claimed to have killed and wounded at least 236
Iranians and lost 38 of its own troops.
     Positions in Kermanshah province command the main route from the
disputed border area to the Iraqi capital of Baghdad 100 miles away.
Iraq also maintains its artillery barrages across the Shatt al-Arab
waterway further south, inflicting more damage on the beleagured city
of Abadan. Although Abadan is virtually encircled by well-dug-in
Iraqi troops, Iranian defense forces are still being supplied by
helicopter and there has been no sign of An iraqi move to capture the
center of the city.
    Of concern to Iraq are reports that the pumping of oil had stopped
along its newly reopened pipeline to the Syrian port of Banias. It
was not immediately clear whether this was due to Iranian air raids
on the northern oilfields around Kirkuk or to sabotage. Although Iraq
has said its monetary reserves are sufficient to continue fighting
for up to a year without oil revenue, it does need natural gas
produced along with the oil. The gas is used for domestic heating and
power and its loss would bring the effects of war home more forcibly
to the civilian population, thus possibly posing an internal threat
to the regime of President Saddaam Hussein.
    ENDIT COPPS
    
nyt-12-21-80 2249est
**********

n090  2013  21 Dec 80
BC-MEXICO-12-22
    NEWS ANALYSIS
    By Rachelle Patterson
    (c) 1980 Boston Globe (Field News Service)
    WASHINGTON - President-elect Ronald Reagan's trip to Mexico for one
hour on Jan. 5 to meet with President Jose Lopez Portillo is as
symbolic as it may be substantive.
    Although Reagan has said he would steer away from involvement in
foreign policy before his inauguration on Jan. 20, the brief meeting
in Juarez is designed to reassure Mexico and other Latin American
countries that they will not be neglected in a U.S. foreign policy
molded by Secretary of State-designate Alex-H ander M. Haig, whose
thinking is known in Western Europe but little known elsewhere.
    At a private meeting with Hispanic leaders a week ago, Reagan
expressed the concern Latin American countries might feel they are
being put on the back burner because of U.S. attention to Poland, the
Soviet Union, and the Mideast. The selection of Haig, Reagan sources
said, created the need to reassure this country's southern neighbors
that they will figure prominently in the foreign-policy agenda.
    Reagan has said he would not get involved in foreign policy until he
is sworn into office. He has declined to talk about his proposals for
freeing the hostages in Iran and refused to meet with Israel's Prime
Minister Menachem Begin. Reagan and his aides have repeatedly said
that President Jimmy Carter is in charge until Jan. 20 and any
involvement by them in foreign policy would only lead to confusion.
    The president-elect did meet with Helmut Schmidt last month in
Washington, however. The meeting was not intended to be substantive,
but Schmidt was able to return to his country and boast of his new
relationship with the next president.
    The Mexican trip, then, is largely symbolic, as are many of Reagan's
recent actions.
    Last month, for instance, he went to Capitol Hill to symbolize his
willingness to seek cooperation with both sides of the aisle in
Congress. He went out of his way to meet and dine with the Washington
establishment to show that he intends to operate as an insider.
    Most recently, the idea of an ''economic emergency'' during the
first 100 days of his administration, floated by his aides, is
designed to create a sense of urgency about curbing inflation and
federal spending, although there is no plan to ask for any special
powers - and there is also the risk of quick disillusionment should
he fail to deliver.
    Reagan has long been interested in improving relations with both
Mexico and Canada and in setting up a common-market trade
relationship with those two countries.
    The visit with Lopez Portillo, while largely ceremonial, is expected
to lay the groundwork for such a union. He last met with Lopez
Portillo in Mexico City in July, 1979, before announcing for the
presidency.
    The concept of a so-called North American accord was first mentioned
by Reagan in his announcement speech in November, 1979, in New York
City, a location symbolic of his intention to court Northeast voters.
    In that speech, Reagan said: ''The key to our future security may
lie in both Mexico and Canada becoming much stronger countries than
they are today.''
    As President, Reagan said, he would invite each of the countries to
send representatives to sit in on high-level planning sessions.
    ''It may take the next 100 years,'' Reagan said, ''but we can dare
to dream that at some future date, a map of the world might show the
North American continent as one in which the people and commerce of
its three strong countries flow more freely across their present
borders than they do today.'' He also said: ''It is time we stopped
thinking of our nearest neighbors as foreigners'' - though it is
unlikely that Canadians and Mexicans would like to think of
themselves as Americans.
    In announcing Reagan's first foreign trip since his election,
Reagan's foreign policy adviser, Richard V. Allen, said an effort was
also made to set up an early meeting with Canadian Prime Minister
Pierre Trudeau but that Trudeau's schedule precluded such a meeting.
    Showing off his bilingual skill, Allen, who is expected to become
the next national security adviser, spoke first in Spanish and then
in English.
    Allen said the Lopez Portillo meeting will include some matters of
substance.
    Besides the North American accord, another topic on the agenda is
expected to be the illegal alien problem, which was also discussed
with the Hispanic leaders in Washington last week.
    Robert Estrada, who heads the Texas office of Sen. John Tower, said
Reagan hopes to win agreement on a plan that would allow Mexicans to
work in this country legally for a period of time. Pushed by Texas
Gov. William Clements, the plan is opposed by organized labor in this
country.
    There is the feeling among some Mexicans that the overture by Reagan
is based on the country's rich oil reserves. But Allen said he
doubted energy would be discussed because ''we are not prepared to do
so.'' Mexico, a major supplier of petroleum to the United States, is
said to be considering raising the price of its top quality crude oil
by 15 percent on Jan. 1.
    ENDIT PATTERSON
    
nyt-12-21-80 2313est
**********

n094  2044  21 Dec 80
BC-HOSTAGES-12-22
    By Charles W. Corddry
    (c) 1980 The Baltimore Sun (Field News Service)
    WASHINGTON-The United States on Sunday rejected Tehran's latest
terms for releasing the 52 American hostages on grounds that they
called for illegal actions by President Carter to transfer billions
of dollars to Iran's account in Algeria.
    Chances for the captives' freedom during the remaining weeks of the
Carter administration seemed further diminished, but officials said
they would continue pressing for a solution.
    The administration's reaction to a long Iranian communication
received Friday was given in television interviews by Secretary of
State Edmund S. Muskie and Secretary of Defense Harold Brown.
    The money Iran wants deposited in the Central Bank of Algeria, the
country serving as intermediary in negotiations, would be a cash
guarantee that Iran would get back assets blocked here since the
hostages were taken as well as American assets of the late Shah
Mohammad Reza Pahlavi.
    Interviewed on NBC's ''Meet The Press,'' Muskie said the
administration regarded Tehran's conditions as ''unreasonable and as
requiring of us actions beyond the power of the president to take.''
    In what obviously was a carefully coordinated administration
repsonse, Brown said on the CBS's ''Face The Nation'' program that
the United States was ''not . . . going to respond to requests which
ask for actions that are just illegal for us to do.'' Meeting the
terms would amount to ''paying a ransom,'' he suggested.
    The net effect of weekend developments seemed to be to solidify
positions of both sides and to make even more certain that the
hostage problem would still be as the forefront when Ronald Reagan
becomes president Jan. 20.
    Neither cabinet officer hinted at any letup in efforts to win the
captives' release, however.
    Muskie said, ''No, indeed,'' when asked whether the administration
was considering suspending negotiations until Reagan takes over, as
had been reported.
    ''We will continue to work on the problem,'' Brown said, emphasizing
''peaceful approaches'' and refusing to be led into discussion of
military options.
    Muskie said the two countries were within reach of a solution, if
Iran could but see it, that would eliminate any possibility of
military action, free the hostages and begin bringing Iran ''back
into the community of nations.''
    He granted, however, that freedom for the 52 Americans ''is
certainly not going to happen by Christmas'' and it would be ''very
difficult'' to bring it about in the time left to the Carter
administration.
    It depends, he said, on whether Iran's weekend note is a negotiating
tactic or a ''take-it-or-leave-it proposal.'' Tehran has called its
communication a ''final answer.''
     Muskie said he was giving the administration's ''offical reaction''
in the public interview, indicating that an ''official response''
would be transmitted in time through Algerian authorities to Tehran.
That response presumably will seek modification of Iranian proposals
that the administration says cannot legally be carried out as they
stand.
    The administration has indicated it would not stand in the way of
Iranian court actions aimed at reclaiming American assets of the late
Shah.
    Besides those assets of unknown but probably small size, about $8
billion in Iranian government holdings were blocked by the Carter
administration after the hostages were taken.
    Muskie said Sunday that some of the blocked assets could be made
available immediately but others were subject to claims against the
Iranian government by American individuals and institutions.
    The United States, he said, is willing to have international
settlement procedures for the claims but these could not be completed
by the end of the Carter administration.
    Consequently, he said, Tehran had demanded ''cash guarantees.''
Asked whether any money would be sent to Algeria, he said, ''No. The
president does not have power to do that or authority to do that.''
    ENDIT CORDDRY
    
nyt-12-21-80 2345est
**********

n097  2051  21 Dec 80
AM-IRAN-U.S. SUB LEAD (Changes Figure) a1062
Muskie Says Iran Demand for $24 Billion 'Unreasonable'
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - Secretary of State Edmund S. Muskie said Sunday that
Iran's demand that the United States deposit close to $24 billion in
Algeria to secure the release of the hostages was ''unreasonable''
and went beyond the legal powers of the American presidency.
    In what he said represented ''the reaction of the administration''
to the Iranian terms, though not an official response, Muskie held
out virtually no hope that the Carter administration could secure
freedom for the 52 hostages before leaving office Jan. 20. (The terms
were published in Tehran Sunday after having been sent here Friday).
    Pickup 3dgraf: It was that hope, etc.
    
nyt-12-21-80 2352est
**********

a927  2112  21 Dec 80
BC-Yearend-Auto Industry, Adv 80, 1st Add, b0926,380
$Adv 80
For Release in Yearend Editions
DETROIT: on imports.
    In November, the commission refused to recommend quotas, saying
imports were not the most important cause of the industry slump.
    Sales picked up early in 1980. But in March, the Federal Reserve
Board imposed credit controls and the bottom fell out. By May, the
annual rate of sales was 7.3 million units and the prime lending rate
at banks was 20 percent.
    Sales rebounded with the removal of credit controls and settled down
to an annual rate of 8.8 million for August - about 6.6 million for
domestic models - with little change through October.
    In mid-November, the rate of sales rose to 9.1 million overall.
That's when interest rates began rising again, setting records in
December.
    December is always numerically weak - ''We're fighting Santa Claus
and bathrobes,'' said one dealer - and the year will wind up at about
8.98 million cars at best, about 6.5 million domestic models.
    Domestic truck sales will be just about 2.0 million, making the
combined total of 8.5 million the worst since 7.8 million in 1962.
    Imports will have a record share of the market for both cars,
approaching 27 percent, and trucks, 20 percent.
    This slump is different from others in that it is harder to make
profits now. Arvid Jouppi, analyst for the stock brokerage firm of
John Muir & Co., says the industry evolved to produce at 80 percent of
capacity and break even at 70 percent, but now breaks even at 80
percent and is losing money running at 70 percent.
    One thing that would unleash demand, some dealers say, would be a
sudden jump in gasoline prices. They reason many would-be buyers now
dissuaded by high car prices would change their minds, sell less
gasoline efficient models and buy smaller cars, if gasoline prices
rose.
    A 50-cent increase in the cost of a gallon ''would be bad for the
country and bad for the world, but it would sell cars,'' said Casey
Meyers, a dealer in St. Joseph, Mo.
    Many oil-industry analysts, watching oil companies live off
inventory during the Iran-Iraq war, say crude oil and gasoline prices
will skyrocket this spring when inventories have to be replaced.
    Two major federal criminal investigations were dropped during the
year: A probe of GM's accounting of spare parts and a probe of a
reported Ford plot to bribe to an Indonesian general.
    Ford, however, was grappling at year-end with a safety investigation
that could force it to recall 16 million cars to fix automatic
transmissions. Such a recall would cost hundreds of millions of
dollars.
    End Adv For Yearend Editions
    
ap-ny-12-22 0013EST
**********

n999  2310  21 Dec 80
. . .lwe, the 44-year-old Charlottesville (Va.) lawyer now
representing Garwood, says, ''The Code of Conduct is a nice idea, but
it doesn't work. . . . A lot of guys suffered needlessly over there
in Vietnam bing held.
    ''You hear a lot of macho talk around here about what some of these
guys would do if captured,'' he said, ''but they don't know how they
would act. I don't know how I would act. It's all just talk until you
face the situation.''
    The lance corporal was not particularly interested in the Garwood
case, but by his remarks he tended to sympathize with a fellow
enlisted man being hauled before a jury of officers to answer for
conduct that might have been brought about by circumstances none of
the officers had ever faced.
    The panel that will decide Garwood's guilt or innocence is composed
of a lieutenant colonel, three majors and a first lieutenant, all of
whom served in Vietnam, but none of whom was ever a prisoner there.
    The proceeding conforms strictly to provisions of the Uniform Code
of Military Justice, but some observers say it is the kind of thing
that tends to widen the gap between officers and enlisted men in the
Marine Corps.
    ''It was my observation during the time I spent at Camp Lejeune that
there is a tremendous hostility in the ranks,'' said Dermot G. Foley,
a New York lawyer who represented Garwood in the early stages of his
court-martial. ''There is growing resentment between enlisted men and
officers.''
    Such hostility is not apparent to a casual visitor to the
170-square-mile base that is home to the 2d Marine Division, the 2d
Force Service Support Group and a variety of amphibious training
activities.
    The ''few good men'' - and a noticeably increasing number of women -
who make up the Marine Corps appear as proud of their branch as those
who served in it previously. Off base they wear caps, T-shirts and
jackets that identify them as marines. Bumper stickers and window
decals extolling the Marine Corps decorate many of the vehicles going
in and out of the main gate.
    Because the marines at Camp Lejeune are highly mobile - in transit
to various unit exercises and assignments in the United States and
overseas - the impact of Garwood's trial is uncertain.
    Those at the base who have followed the Garwood case tend to see it
in one of two ways: that the government is pressing its case against
Garwood mainly because it does not want to pay him the $150,000-plus
in back pay he has claimed, or that the defendant is a victim of
''selective prosecution'' and that others who violated the Code of
Conduct have not been prosecuted.
    In 1973, the Army and Navy brought charges against seven former POWs
for violating the Code of Conduct, but the charges were dropped for
lack of evidence shortly after an eighth defendant, a marine,
committed suicide.
    The Department of Defense reviewed the Code of Conduct and its
implications for military personnel in 1976, motivated in part by the
experiences of men in Vietnam who found it difficult to live up to
the code.
    The panel that examined the code concluded that it was needed, and
noted that ''some prisoner of war returnees attributed their very
survival to the inspiration provided by the Code of Conduct.''
    The panel recommended that training in the Code of Conduct be
improved to stress that those most vulnerable to capture - foot
soldiers and combat aviators - should have particular appreciation of
their responsibilities if taken prisoner.
    The panel noted that although the code says a prisoner is required
to avoid interrogation ''to the utmost of my ability,'' some services
continue to interpret the code as an absolute bar against providing
more than name, rank, service number and date of birth.
    Lowe, who calls the Code of Conduct ''unworkable, idealistic and
utopian,'' believes that whatever usefulness it may have had in the
mid-1950s is no longer valid. In a world of terrorist kidnappings,
ill-defined brush-fire wars and sophisticated methods of
psychological torture and interrogation, the code demands too much,
he says.
    Lowe and others believe the ultimate solution is to adopt a national
policy saying to the world that the United States recognizes the
nature of the problem. He says a person taken captive should be free
to sign any statement or do anything else to survive captivity and
that the United States should make clear that all statements by POWs
will be considered to have been given under coercion and therefore to
lack credibility.
    Even some marines are beginning to agree that, given the nature of
international confrontation in the modern world, the Code of Conduct
now may be unworkable. When it was drawn up in 1957, most nations
routinely observed some elements of the Geneva Conventions.
    As illustrated recently by events in Vietnam, Cambodia and Iran,
that is no longer true.
    There is an increasing feeling that the first responsibility of the
POW is to keep himself alive. If telling the enemy what he wants to
hear will do that, POWs should have that option, it is argued at the
trial of Private Garwood.
    Such an approach stirs hot controversy both within the military and
without, however, and the standard of conduct likely to persist
during the Garwood trial will be the ''moral fiber'' standard favored
by Col. Switzer.
    ENDIT MATTHEWS
    
nyt-12-22-80 0211est
**********

a012  2314  21 Dec 80
PM-US-Hostages, Bjt,700
Muskie Denounces Iran's Terms; Hostage Release Not Imminent
Laserphoto WX2
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - Iran's latest terms for freeing the 52 American
hostages have been denounced as unreasonable by Secretary of State
Edmund S. Muskie, and hopes for a 
Bust It
    
ap-ny-12-22 0215EST
**********

a014  2339  21 Dec 80
PM-US-Hostages, Bjt,700
Muskie Denounces Iran's Terms; Hostage Release Not Imminent
Laserphoto WX2
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - Iran's latest terms for freeing the 52 American
hostages have been denounced as unreasonable by Secretary of State
Edmund S. Muskie, and hopes for a Christmas homecoming have
evaporated.
    Defense Secretary Harold Brown has declared, meanwhile, that the
United States would not pay ransom to Iran to end the hostages'
415-day captivity.
    The two Cabinet officers, giving bleak assessments in separate
televised interviews Sunday, indicated there is little chance of a
settlement during the month left to the Carter administration.
    Muskie, on NBC's ''Meet the Press,'' said it would be very difficult
to agree to terms by Jan. 20, and ''It certainly is not going to
happen by Christmas.''
    Brown, on CBS' ''Face the Nation,'' declared that the United States
could not accede to paying ''ransom ... money that was never in this
country'' to gain release of the hostages.
    Asked if Iran's terms, delivered Friday to the State Department,
amounted to ransom, Brown said ''anything that goes beyond the status
quo ... of the situation beforehand, I think, could well be seen in
that light.''
    Iran is calling on the United States to deposit $23 billion in
Algeria's central bank as a guarantee for recovery of all deposits
Iran had in western banks before militants seized the U.S. Embassy in
Tehran in November 1979.
    Some of the deposits are subject to claims filed against Iran for
losses allegedly suffered during the revolution that overthrew the
late Shah Mohammed Reza Pahlavi.
    Muskie said Iranian officials seemed to think terms could be set and
met with ''just the flick of their fingers.''
    ''We regard the response as unreasonable and as requiring of us
actions beyond the power of the president to take,'' he said.
    But Muskie said that the administration was willing to lift the
economic sanctions imposed by President Carter after the hostages were
seized and that it had offered to help set up an international claims
commission to handle suits against Iran.
    Yet Muskie said the United States has no responsibility for deposits
placed in western banks before the embassy takeover. He also said the
United States could not make cash guarantees that the deposits would
not be seized to offset claims.
    ''That's not our responsibility,'' he said.
    Muskie said he had discussed the situation with Carter before the
television appearance. Therefore, Muskie said, his remarks reflected
the administration's ''official reaction'' although it was not a
formal response to Iran's message.
    Later, Muskie told reporters there would be a U.S. reply once
officials completed their evaluation of Iran's terms.
    ''We're going to try to continue the effort to achieve the release
of the hostages,'' Muskie said.
    ''One thing that we do want to make clear, if it isn't clear
already, is that they've asked us to go beyond the legal authority of
the president,'' he said in a curbside interview.
    ''We thought it was clear, but it may not be. So it may be we're
still involved in clarification.''
    The formal U.S. response to Iran appears to be near completion.
    Deputy Secretary of State Warren Christopher, who is handling the
day-to-day negotiations, conferred for five hours Sunday at the State
Department with other officials working on the problem.
    He then went on a holiday vacation with his family.
    President-elect Ronald Reagan, asked about the latest Iranian terms
by reporters Sunday, said he was ''not going to comment on that until
it's my turn. Then I'll comment.''
    Iran's demands, made public Sunday in Tehran, include that the
United States deposit $23 billion in the Algerian Central Bank before
the hostages are freed. Algeria has been acting as an intermediary in
the negotiations.
    Earlier, Behzad Nabavi, head of the Iranina govenrment commission
for the negotiations, said Iran had asked the United States to deposit
in excess of $19 billion - $9 billion to cover Iranian assets frozen
in U.S. banks after the hostages were seized and $10 billion to cover
the wealth of the late shah.
    The official, English-language text of the Iranian message confirmed
the $9 billion and $10 billion figures and said an additional $4
billion was being requested in cash, ''or any other valid guarantee
acceptable to the above bank, as a guarantee for the bona fide
discharge of its (the U.S.'s) obligations.''
    It was not clear what was meant by ''obligations.''
    In addition, the text demanded the return of 1,632,827 ounces of
gold ''belonging to Iran.''
    
ap-ny-12-22 0241EST
**********

a027  0110  22 Dec 80
PM-Hostage,300
Father of Hostage Says It's Time For Action
    WILMINGTON, Del. (AP) - On Christmas Day, Gregory A. Persinger will
mark his 23rd birthday and his 418th day of captivity in Iran.
    The Marine sergeant has been sent a package containing toiletries
such as toothpaste and shaving cream and some crossword puzzles to
provide some diversion from the monotony of his detention.
    ''I don't know whether he got them,'' his father, Lawrence, said in
a telephone interview from his home in Seaford, Del., Sunday. ''We
haven't heard anything.''
    The elder Persinger and his wife, Jackie, have received only two
full letters - the most recent in August - from Gregory since the U.S.
embassy in Tehran was seized by Iranian militants more than a year
ago.
    Persinger said he agreed with Secretary of State Edmund S. Muskie,
who said Sunday the latest Iranian conditions for the hostages'
release were ''unreasonable.''
    ''It's blackmail as far as I'm concerned,'' he said. ''I think
they're outrageous. I've always felt you can't deal with them.
    ''I just think it's time we got off of our rear ends and do
something.'' He said he'd blockade the Persian Gulf and demand
cooperation from American allies whom he called ''our lukewarm
friends.'' And then, he said, ''I'd give them so long and then I'd go
in there and get them (the hostages.)''
    The younger Persinger, a graduate of Seaford High School, was in his
second enlistment in the Marines when he was taken hostage.
    ''I never thought he'd be home for Christmas,'' his father said.
    Persinger also said he hasn't joined his wife and daughters in their
holiday preparations and has no desire to start now.
    ''As far as I'm concerned, I'm not interested in Christmas - in
buying or giving gifts,'' he said.
    
ap-ny-12-22 0411EST
**********

a032  0157  22 Dec 80
PM-Afghan Assessment, Bjt,670
Soviets Stick to Their Guns in Afghanistan
An AP News Special
By THOMAS KENT
Associated Press Writer
    MOSCOW (AP) - One year after the Kremlin sent troops into
Afghanistan, some Soviet officials have admitted they may not have
weighed all the ''pros and cons'' in advance. But they say they are
convinced it was worthwhile, and claim it reveals some sharp divisions
in the Western alliance.
    ''It was something we felt we had to do,'' a Soviet foreign affairs
specialist said in a recent interview. ''I don't think that when the
decision to go into Afghanistan was made, there was a very careful
weighing up of the pros and cons. But in the long run, it seems to
have been worth it.''
    The Soviet Union still faces international condemnation, trade
restrictions and a grueling guerrilla war in Afghanistan itself. But
the officials, who declined to be identified, say they believe
international opposition has passed its peak and the Soviet army is
gradually pacifying the anti-communist Moslem rebellion in
Afghanistan.
    On the plus side for Moscow, the prospect of a militant Islamic,
anti-Soviet Afghanistan on its southern border has been destroyed for
the time being, the officials say. They add that Third World
countries and the West have seen that the Kremlin does not shy from
defending its vital interests - by force if necessary.
    In addition, they believe Moscow's Afghan intervention has revealed
cracks in the Western alliance.
    Despite a Western trade embargo sponsored by the Carter
administration, Soviet business this year with France, West Germany,
Italy and Britain is running at more than the level of business last
year. Canada and Australia have removed ceilings on grain sales to
Moscow imposed after the Afghan intervention.
    Western diplomats counter that the Soviets still face many problems
over Afghanistan, perhaps so many that thoughts of other military
intervention - in Poland, for instance - have been shelved.
    These sources say the Soviet Army has suffered more than 7,000
casualties in a year of fighting elusive, poorly equipped guerrilla
forces. It has failed to get much help from the desertion-plagued
Afghan army and has no early prospect of being able to withdraw, the
diplomats say.
    ''They thought that if the great, mighty Soviet army went in there,
the resistance would just fold up like it did in Czechoslovakia in
1968,'' one Western specialist said. ''It didn't happen.''
    Rival wings of the pro-Soviet Afghan government continue to attack
each other under the Soviets' noses, according to reports from the
area. Rebels reportedly control much of the countryside and the
anti-Soviet guerrilla resistance is too diffuse to negotiate with,
even if Moscow wanted to.
    ''I'd say the Russian army is trapped down there for at least
another year or two, unless they can negotiate with someone,'' a
Western diplomat said. ''They're probably also facing the temptation
of escalation, which would take them in deeper in the hope of
finishing the job against the rebels.''
    Western sources also reject the Soviet assertion that international
furor is dying down over Afghanistan. They note that U.S.-Soviet
trade is expected to be decline 20-30 percent from last year, mostly
due to a U.S. grain embargo that many believe also has produced a
decline in Soviet meat production.
    To protest the Afghan intevention, the United States also shelved
the SALT II treaty, putting off any effort to seek Senate ratification
of the new strategic arms limitation agreement, and many Western
countries have cut off or reduced cultural ties with the Soviet Union.
    Yet Moscow is hoping the West and its news media have a limited
attention span. The Afghan crisis was not mentioned directly in the
presidential debate this year between Jimmy Carter and Ronald Reagan,
and more newspaper space has been devoted recently to Poland and the
Iran-Iraq crisis than Afghanistan.
    Many Soviet officials believe that, if the Soviet Union continues
grimly pursuing its present Afghan policy despite all obstacles, the
West will eventually lose interest in the matter and agree to rebuild
the crumbling bridge of detente.
    
ap-ny-12-22 0458EST
**********

a035  0209  22 Dec 80
PM-Oil Prices,380
Expert Says Oil Price Increases Already Under Way
    LOS ANGELES (AP) - The OPEC boost in crude oil prices already is
registering at the gasoline pump, but Americans won't really feel the
pinch until spring, oil industry expert Dan Lundberg says.
    The Dec. 19 edition of the weekly Lundberg Letter said the largest
gasoline price impact will be felt in March, when, it predicts,
gasoline prices will soar to $1.33 a gallon. Americans could face an
average price of $1.45 a gallon by December 1981, the letter said.
    Meanwhile, in New York, the trade newsletter Petroleum Intelligence
Weekly said the war between Iraq and Iran helped hold the output of
the Organization of Petroleum Exporting Countries to a 10-year low in
October.
    The Lundberg Letter, distributed by Lundberg, said the average price
increase announced by OPEC at its meeting in Bali, Indonesia, last
week would come to $3 a barrel.
    The increase will average 6 cents per gallon of petroleum products
for American consumers, the publication said.
    Lundberg said a survey of 14,000 stations across the U.S. this
weekend showed an across-the-board increase of eight-tenths of one
cent for all types of gasoline, while refiners took an immediate penny
increase.
    Gasoline sold at both self-service and full service stations
averaged $1.22, compared to $1.21 the weekend of Dec. 5. Refiners'
prices went from 98.07 cents to 99.06 cents during the same period.
    Lundberg said his survey indicated the increases took place within
the last four days.
    But consumers didn't feel the full effect of the refiners' increases
because dealers again lowered their profit margin, Lundberg said,
adding that dealers now make an average of 9.07 cents per gallon. The
federal Department of Energy allows up to a 17.70-cent profit.
    After March, rising refiners' costs, decontrol of domestic crude
prices and the ripple effect of higher world oil prices on the newly
decontrolled oil will bump gasoline prices higher each month, the
letter said.
    ''But the idea that OPEC will stop here is a hell of a mistake,''
Lundberg said. ''Especially when Sheik Yamani of Saudi Arabia thinks
we're going to hit $50 a barrel.''
    Lundberg's publication predicts that if that happens, prices for
gasoline would reach $1.60 a gallon.
    
ap-ny-12-22 0510EST
**********

a044  0318  22 Dec 80
PM-Iran Hostages,680
Report Hostage Negotiations Set for London
By the Associated Press
    Algerian intermediaries will chair ''detailed negotiations'' between
Iran and the United States in London this week over the fate of the
52 American hostages, a British newspaper reported today. The State
Department said it had no knowledge of such a meeting.
    ''We're not aware of any meeting in which the United States is
participating in London this week,'' a State Department spokesman
said.
    The British newspaper Daily Telegraph gave no source for its brief
report, the second such account of upcoming secret negotiations on the
hostages to appear in less than a week. A French news agency
published a similar report in Paris on Dec. 18, which the State
Department also denied.
    The latest report came one day after Iran demanded the United States
deposit some $24 billion in cash and gold in the Algerian central
bank before the hostages are freed.
    Secretary of State Edmund Muskie called the demands ''unreasonable''
and said the hostages would not be home by Christmas. A top Iranian
official said Iran could hold the 52 captives ''for 10 more years.''
They began their 415th day in captivity today.
    Muskie said it would be difficult to agree on terms for the
hostages' release before Jan. 20, when President-elect Ronald Reagan
takes office.
    Asked about Iran's demands, Reagan told reporters he was ''not going
to comment on that until it's my turn. Then I'll comment.''
    An official English-language text of the Iranian demands released in
Tehran on Sunday says Iran wants $9 billion to cover Iranian assets
frozen in U.S. banks after the hostages were seized on Nov. 4, 1979.
It asked $10 billion to cover the wealth of the late shah of Iran and
the return of more than 1 1/2 million ounces of Iranian gold deposited
in the U.S. Federal Reserve Bank and worth almost $1 billion at
current rates.
    In addition, the statement said Iran wants $4 billion in cash ''or
any other valid guarantee acceptable to the (Algerian central) bank,
as a guarantee for the bona fide discharge of (the U.S. government's)
obligations.'' It did not define the obligations.
    ''We regard the (demands) as unreasonable and as requiring of us
actions beyond the power of the president to take,'' Muskie said
Sunday on NBC-TV's ''Meet the Press.''
    Secretary of Defense Harold Brown, appearing on the CBS-TV program
''Face the Nation,'' said the United States would not yield to Iran's
demands for ''ransom ... money that was never in this country.''
    The Iranian demands, contained in a message to Washington, were made
public Sunday in Tehran by Executive Affairs Minister Behzad Nabavi.
Nabavi said the hostages could be released 24 hours after the demands
were met. But, he added, ''There is no room for bargaining.''
    Nabavi also said the hostages are in good health and may be
interviewed for an Iranian television broadcast to be aired in Iran
Christmas night.
    He said all they have been transfered to ''very beautiful hotels
provided with complete services'' at undisclosed locations.
    In London, meanwhile, the Archbishop of Canterbury, Dr. Robert
Runcie, renewed his appeal to Iranian leader Ayatollah Ruhollah
Khomeini to allow a Christmas visit to four Britons detained in Iran
since August. The four - three Anglican missionaries and a businessman
- were arrested in Iran shortly after British authorities in London
arrested large numbers of Iranian demonstrators for disturbing the
peace. The demonstrators were later released and some were deported.
    In other developments, Iranian President Abolhassan Bani-Sadr
traveled to the war-torn southern province of Khuzistan Sunday to
discuss war strategy with miltary commanders on the 300-mile-long
battlefront with Iraq. It was Bani-Sadr's third reported visit to the
front since the fighting between the two oil-rich neighbors broke out
92 days ago.
    Iran said its forces counterattacked at two points along the front,
killing 130 Iraqis and taking 21 prisoners.
    Iraq said it beat back the attacks in heavy fighting that killed 26
Iranians, bringing the total Iranian soldiers it claims to have
killed in the 13-week-old war to 262.
    
ap-ny-12-22 0619EST
**********

a045  0321  22 Dec 80
PM-Quotes,160
Current Quotes
By The Associated Press
    ''One thing that we do want to make clear, if it isn't clear
already, is that they've asked us to go beyond the legal authority of
the president. We thought it was clear, but it may not be. So it may
be we're still involved in clarification.'' - Secretary of State
Edmund S. Muskie, on Iran's demand that the U.S. deposit $23 billion
in Algeria's central bank before the 52 American hostages are
released.
    ---
    ''It's blackmail as far as I'm concerned. I think they're
outrageous. I've always felt you can't deal with them.'' - Lawrence
Persinger, father of hostage Marine Sgt. Gregory A. Persinger, on the
latest Iranian conditions for release of the hostages.
    ---
    ''I don't envy anyone else's body - I just intensely dislike skinny
people.'' - Sen. Howard Baker, R-Tenn., when asked if he didn't like
anything about his appearance by People magazine.
    
ap-ny-12-22 0623EST
**********

n536  0414  22 Dec 80
BC-SUMMARY-3takes-12-22
    EDITORS:
    Following is a complete summary of today's FIELD NEWS SERVICE
report. The editors may be phoned at (312) 321-2801.
    
    MONDAY, DEC. 22, 1980
    
    
    BEHIND THE TOP HEADLINES
    
    CAMP LEJEUNE (Matthews - Baltimore Sun - CODE) - NEWS ANALYSIS: The
court-martial of Marine Pfc. Robert R. Garwood, a man accused of
desertion in the face of the enemy, collaboration and mistreatment of
American prisoners during the Vietnam War, is also a trial of the
Military Code of Conduct, a code that sets a moral code for POWs.
(1,800)
    
    WASHINGTON (Healy - Boston Globe - MONDALE) - Vice President Walter
Mondale says economic factors, some beyond the control of any
president, cost Jimmy Carter the election and that ''the future of
progressive government is grim indeed.'' (950)
    
    WASHINGTON (Rousmaniere - Baltimore Sun - CHRYSLER) - A bare six
months after he announced that Chrysler Corp. would be ''back in the
black'' by the end of the year, a desperate Lee A. Iacocca will
travel to Washington this week to ask for more government life
supports. (1,000)
    
    
    INTERNATIONAL
    
    WASHINGTON (Corddry - Baltimo Sun - HOSTAGES) - The United States
rejects Tehran's latest terms for releasing the 52 American hostages
on grounds they call for illegal actions by President Carter to
transfer billions of dollars to Iran's account in Algeria. (650)
    
    MOSCOW (Wade - Telegraph - KOSYGIN) - Sources say former Soviet
Premier Alexei Kosygin died while pulling up his shirt for a medical
check on his heart at a clinic reserved for Kremlin leaders. (300)
    
    PESHAWAR, Pakistan (Loudon - Telegraph - AFGHAN) - A new wave of
Afghan refugees, many of them starving and emaciated, streams across
the snow-capped Hindu Kush into Pakistan, indicating that with the
first anniversary of the Soviet occupation there is intense fighting
between Soviet forces and Moslem guerrillas. (950)
    
    MANAMA, Bahrain (Copps - Telegraph - WAR) - The prediction that the
Persian Gulf conflict between Iraq and Iran is likely to become a
drawn-out war of attrition is given added support by reports that
Iraq is setting up a civilian administration for captured Iranian
lands, including the port of Khorramshahr. (350)
    
    WASHINGTON (Patterson - Boston Globe - MEXICO) - NEWS ANALYSIS:
President-elect Ronald Reagan's trip to Mexico on Jan. 5 to meet with
President Jose Lopez Portillo is as symbolic as it may be
substantive. The brief meeting is designed to reassure Mexico and
other Latin American countries that they will not be neglected in
U.S. foreign policy. (850)
    
    MUNICH (D'Adesky - Sun-Times - GERMAN) - ''What has happened is not
only awful, it is a breakdown; it is a catastrophe,'' says West
Berlin Mayor Dieter Stobbe, characterizing the reaction in West
Germany to recent steps by East Germany to reduce contacts with the
West. (1,600)
    
    
    DOMESTIC
    
    WASHINGTON (Corddry - Baltimore Sun - JONES) - Defense Secretary
Harold Brown warns opponents of Gen. David C. Jones in the Reagan
transition team that they would be ''politicizing the military'' if
they got the chairman of the Joint Chief of Staffs fired. (250)
    
    WASHINGTON (Ingersoll - Sun-Times - FUNDS) - A congressional study
shows that managers of most pension funds in the Northeast and
Midwest invest billions of dollars elsewhere, accelerating the loss
of jobs in these economically troubled regions. (500)
    
    UNDATED (Cohen - Boston Globe - PRESCHOOL) - A study shows that a
group of poor black children with low IQ scores did better in school,
had lower delinquency rates and better job prospects because of their
pre-school training than their counterparts without that special
attention. (700)
    
    UNDATED (Sehlstedt - Baltimore Sun - MONKEYS) - Research with
monkeys indicates that the animals use different calls to distinguish
among different kinds of predators - meaning that they have a
rudimentary type of language. (650)
    
    MORE
    
nyt-12-22-80 0715est
**********

a055  0434  22 Dec 80
PM-Shariati,230
Families React to Acquittal of Iranian Student Charged with Murder
    DENVER (AP) - The father of a teen-ager who was fatally shot by an
Iranian student says Afshin Shariati will have to ''live with'' the
incident despite his acquittal on second-degree murder charges.
    Donald Moritzky said his son's death was a tragedy that has
traumatized his family.
    ''My wife, my sons - our lives will never be the same,'' he said
after the verdict. ''He will live with it.''
    Shariati was freed Saturday after a Denver District Court jury
acquitted him of charges stemming from the Nov. 11, 1979 incident.
    He admitted shooting the .30-caliber rifle that killed 15-year-old
Moritzky and wounded two of Moritzky's companions. But Shariati said
he did so because he thought a bomb had been thrown into his
apartment. Shariati's defense lawyer, Walter Gerash, contended
Shariati did not take aim at the boys as they fled.
    Witnesses testifying in the case said the three boys, armed with
baseball bats, had set out to ''hassle'' Iranians and smashed a window
in Shariati's apartment. The incident occurred one week after
Americans were taken hostage at the U.S. Embassy in Iran.
    Shariati, a student at Arapahoe Community College near Denver, said
after the verdict that he would remain in the United States. He lives
with his American wife, Toni.
    Shariati also was acquitted of attempted second-degree murder and
assault in the case.
    
ap-ny-12-22 0735EST
**********

a071  0637  22 Dec 80
PM-Iran-Quake,190
Second Quake in Four Days Hits Tehran
    NICOSIA, Cyprus (AP) - A mild earth tremor shook Tehran today, the
second quake in four days, the official Iranian news agency Pars
reported.
    Pars said the tremor hit the city of 4 million people at 4:23 p.m.
(6:23 EDT) but made no reference to either casualties or damage. But
the agency said details ''of the quake and its epicenter will be
announced by the Tehran Institute of Geophysics later today.''
    Last Friday two strong earthquakes measuring 5.7 and 5.9 on the
Richter scale hit central Iran within a few hours of each other,
killing at least 26 people and damag8ng many buildings.
    Among the damaged buildings were two golden domed shrines in the
holy Islamic city of Qom, 80 miles south of Tehran.
    The Richter scale is a measure of ground motion as recorded on
seismographs. Every increase of one number means a tenfold increase in
magnitude. Thus a reading of 7.5 reflects an earthquake 10 times
stronger than one of 6.5.
    An earthquake of 5 on the Richter scale can cause considerable
damage and a quake of 6 can cause severe damage.
    
ap-ny-12-22 0937EST
**********

a072  0640  22 Dec 80
PM-US-Hostages, INSERT, a014,150
WASHN: to UPDATE with Hodding Carter, Iran lawyer comments, insert
after 8th graf: Some of . . . Reza Pahlavi.
    Hodding Carter III, who was State Department spokesman before his
resignation earlier this year, said on ABC-TV's ''Good Morning,
America'' program today that the latest set of Iranian demands is
unacceptable and unthinkable. '
    ''... It is frankly a kick in the face,'' Carter said. ''It's not
something that any government, this one or the next one, can in any
way be made to accept. I think they have to understand that. As far as
negotiating what they are proposing, that is simply not in the
cards.''
    But Thomas G. Shack Jr., a Washington lawyer who is representing
Iranian interests in U.S. courts, said on NBC-TV's ''Today'' show that
he doubted Iran would consider its demands to be ransom because that
country is seeking to recover assets that it considers to be its
lawful property.
    Muskie said: 9th graf
    
ap-ny-12-22 0941EST
**********

n009  0709  22 Dec 80
PM-HOSTAGES
By DAVID WOOD
Washington Star Service
    WASHINGTON - Hopes that the 52 American hostages in Iran would be
released for Christmas were dashed Sunday when the United States
angrily rejected the latest Iranian demand, which Tehran has called
its final offer, but which U.S. officials said represented a backward
step in negotiations.
    Secretary of State Edmund S. Muskie said Sunday that the United
States could not meet Iranian demands that it deposit some $23
billion and more than 1.5 million ounces of gold in the Algerian
Central Bank to ensure the return of Iranian assets.
    The deposits have been demanded as a condition for release of the
Americans, who have been held for more than a year.
    Muskie called the demand ''unreasonable and beyond the power of the
president'' to meet. He conceded that the hostages - who, according
to an Iranian official are now residing in unspecified ''hotels'' -
would not be released before Christmas and probably not before
President Carter leaves office Jan. 20. Other U.S. officials called
the Iranian demand ''ransom'' and said it should not be dignified
with a substantive response.
     In Tehran, an Iranian official rejected direct negotiations with
the United States, saying, ''There is no room for bargaining.
    ''We do not want to blackmail the U.S. government,'' said Executive
Affairs Minister Behzad Nabavi. ''We do not want anything from them
except what is our wealth.'' If the demands were met by the United
States, he said, the hostages ''could be released within 24 hours.''
    Failure of the United States to comply with the latest demand, he
suggested, would mean the hostages would be turned over to the
Iranian courts.
    The Iranian demand for cash and gold deposits would ''guarantee''
the return to Iran of Iranian assets frozen by the United States and
the return to Iran of the wealth of the late shah. The deposits would
also ''guarantee'' that the United States act in good faith to
negotiate current claims against Iran.
    The text of the Iranian demands, received by the State Department
Friday and released publicly in Iran Sunday by the official news
agency Pars, say the United States must repay the frozen assets with
interest. The United States must also agree not to press claims for
damage suffered as a result of the storming of the U.S. Embassy and
the taking of the hostages Nov. 4, 1979, or for any other damages
resulting from the Iranian revolution.
    And, for the first time, the Iranians suggested they may repay loans
in which they are in default with U.S. banks.
    Nabavi also said the hostages, whom he described as being in good
health and ''living in very beautiful hotels,'' may be interviewed by
Iranian television in a Christmas night broadcast from Iran.
    Muskie, speaking on NBC's ''Meet the Press,'' said the president
does not have the authority to meet demands to transfer cash and gold
to Algeria.
    ''This is not the first time they have suggested items chat would
require us to go beyond the president's authority,'' Muskie said.
''We were under the impression they understood those limits.''
    Muskie stressed that it is ''not our responsibility'' to ensure Iran
against possible financial losses arising from frozen assets and
claims. He said Iranian deposits in the United States amounting to
some $8 billion were ''business arrangements which were interrupted.''
    He said the United States had offered at the beginning of the
negotiations to take whatever steps could be taken legally to restore
Iran's U.S. assets to the status quo of November 1979. The United
States had proposed an international claims settlement procedure to
adjudicate the claims.
    ''Now, because those procedures couldn't be completed before the end
of the president's term and before the release of the hostages, they
ask us for guarantees,'' Muskie said. ''Well, that is asking for
something different than the status quo.''
    Muskie emphasized that his negative reaction to the latest Iranian
demand is an official one that he had cleared with President Carter
Sunday morning. But he indicated the United States is unsure whether
the demand is really a final offer from Tehran.
    ''Like politicians everywhere, their public statements made for
domestic consumption may not necessarily disclose what may be
possible through the appropriate negotiations,'' he said, indicating
that the Iran statement is being studied and a further U.S. response
may be forthcoming.
    Muskie said that after months of negotiations ''we are within
reach'' of a settlement ''if they could but see it. But I don't see
it happening on the basis of the most recent exchange ... It all
depends on the extent to which this Iranian reply is a negotiating
tactic or whether it is in fact a take-it-or-leave-it proposal.''
    One of the frustrating ''and at times agonizing efforts'' at
negotiation, Muskie said, ''is making clear the limits beyond which
the president cannot legally go. It's not always clear whether that
message has gotten through or whether they accept it.''
    Whether the Iranian offer is final or not, Muskie said, ''We
continue to work at what we think is a high priority goal.'' He said
the Carter administration will not let negotiations fade until Ronald
Reagan takes office Jan. 20.
    A written response to the Iranian demand is ''under study,'' Muskie
said. ''The nature of our response is not yet decided, but the nature
of the reaction is clear.''
    
nyt-12-22-80 1010est
**********

a081  0740  22 Dec 80
PM-Iran-Quake, 1st Ld, a071,150
Eds: UPDATES with at least one dead, other new details.
    NICOSIA, Cyprus (AP) - A moderately strong earthquake struck Tehran,
the holy city of Qom and other central Iranian cities today, and at
least one death was reported, the official Iranian news agency Pars
said.
    It said one child was killed and a woman was injured, but it did not
specify where the casualties occurred.
    The quake, measuring 5.3 on the Richter scale, was the second to
rock central Iran in four days. It struck at 4:23 p.m. local time
(7:53 a.m. EST) and was also felt in the towns of Tafresh and Arak,
which with Qom are in an area 80 to 150 miles south of Tehran.
    Last Friday, two strong earthquakes measuring 5.7 and 5.9 on the
Richter scale hit central Iran within a few hours of each other,
killing at least 26 people and damaging many buildings, among them two
golden-domed shrines in Qom, a holy Islamic city that has been the
headquarters for Iranian leader Ayatollah Ruhollah Khomeini.
    The Richter: 2nd graf from end
    
ap-ny-12-22 1041EST
**********

a084  0801  22 Dec 80
PM-Hostages-Mail,280
With PM-US-Hostages
Hostage Wife Says Many Captives Not Heard From Lately
    WASHINGTON (AP) - Penne Laingen, wife of one of the American
hostages in Iran, said today that 18 of the 52 captives have not been
heard from since July.
    She said reports that all the hostages are in good condition and are
being treated well should be viewed with skepticism.
    Mrs. Laingen is the wife of L. Bruce Laingen, who was deputy chief
of mission at the U.S. embassy in Tehran. He is one of three hostages
who have been confined to the Iranian Foreign Ministry since the
crisis began more than a year ago.
    Mrs. Laingen was part of a group which welcomed Secretary of
State-designate Alexander Haig on his first visit to the State
Department since his appointment was announced. Haig met briefly with
Secretary of State Edmund S. Muskie and with members of the Ronald
Reagan transition team.
    Speaking with reporters, Mrs. Laingen said six of the hostages have
not been heard from since April, when the United States undertook an
abortive military rescue operation.
    She said a ''wrong impression'' has been left that the hostages are
all well and living in luxurious suites. She was referring to a
statement Sunday by Iranian Executive Affairs Minister Behzad Nabavi,
who said the hostages are ''hale and hearty'' and living in
''beautiful hotels.''
    Mrs. Laingen said she agreed with the Carter administration that
Iran's terms for freeing the hostages are unreasonable.
    ''We cannot give in to those demands,'' she said.
    Alluding to the continued stalemate in the negotiations, she said,
''It's hard in this season of good will to have feelings of good
will.''
    
ap-ny-12-22 1102EST
**********

a089  0841  22 Dec 80
PM-Iran Hostages, 1st Ld, a044,430
URGENT
Eds: Tops with Parliament speaker threatening trials; other new
material.
By The Associated Press
    The speaker of the Iranian Parliament today renewed Iran's threat to
put the 52 American hostages on trial if the United States does not
accept the $24-billion demand for their release.
    The Parliament leader, Hashemi Rafsanjani, declared that Iran will
not ''back down from our demands.''
    The new threat of hostage trials came a day after U.S. officials
effectively rejected the latest Iranian terms for ending the
confrontation - that the U.S. government deposit some $24 billion in
cash and gold in the Algerian central bank as a guarantee that Iran's
financial demands on the United States be met.
    The British newspaper Daily Telegraph reported, meanwhile, that
Algeria will mediate new ''detailed negotiations'' between Iran and
the United States in London this week. But a State Department
spokesman said, ''We're not aware of any meeting in which the United
States is participating in London this week.''
    ''I doubt it very much,'' another high-level U.S. official said of
the report. The Daily Telegraph gave no source for the brief story.
    Rafsanjani was asked at a Tehran news conference about the
likelihood of hostage trials if the United States rejected Iran's
demands.
    He replied: ''I have not yet seen the official U.S. reaction. But if
the U.S. is not ready to give us our rights our last act will be a
trial.''
    '' .... We guess the Americans have wanted to maexcuse of the
hostages for military intervention and conspiracies. We have no
intention of backing down from our demands.''
    Rafsanjani also said he does not expect the issue to be returned to
the Parliament, or Majlis, which set the four basic conditions for
the hostages' release seven weeks ago.
    ''Because it has already given its instructions if the U.S. does not
accept. The Majlis has said they (the hostages) should be tried.''
The Iranians accuse the hostages of having been spies.
    The speaker's comments echoed those Sunday of Iranian Executive
Affairs Minister Behzad Nabavi, who is in charge of the negotiations
with the United States. Nabavi said U.S. rejection of all the demands
would probably lead to a decision to refer the matter to the Islamic
courts.
    On Sunday, Secretary of State Edmund S. Muskie called the demands
''unreasonable'' and said the hostages would not be home by Christmas.
A top Iranian official said Iran could hold the 52 captives ''for 10
more years.'' They spent their 415th day in captivity today.
    Muskie said: 6th graf
    
ap-ny-12-22 1142EST
**********

n023  0927  22 Dec 80
BC-MONARCHY
By JOSEPH ALBRIGHT
c. 1980 Cox News Service
    RIYADH, Saudi Arabia - The Saudi ruling dynasty, shaken a year ago
by violent demonstrations among Shiite Moslems in the Eastern
Province and by the takeover of the Sacred Mosque in Mecca, has
apparently regained its equilibrium.
    That is the prevailing assessment here among Saudis and expatriate
observers, including some who are not admirers of the monarchy. They
say that barring some external event, such as a war, the House of
Saud is likely to rule over the the Arabian peninsula through the
mid-1980s and perhaps longer.
    From King Khalid a line of succession runs through his more than 25
surviving brothers, all sons of the warrior leader King ibn Saud who
completed the conquest of the peninsula early in this century. A
junior generation of princes, many of them educated in the West, is
positioned in key positions in the army, the ministries and in
private business.
    ''In Iran, the shah was only one man, but Saudi Arabia has a
well-rooted dynasty which has controlled a good part of the Arabian
Peninsula for 200 years,'' said one Mideast intelligence man who
isn't tied to the Saudis.
     Most Saudi-watchers on the scene dispute the assumption in the
overseas press that Saudi Arabia is ''potentially one of the most
unstable'' countries in the world, as Business Week magazine has
phrased it.
    Last year's incipient pro-Khomeini protest movement among Shiite
Moslems in the oil-producing region of Eastern Saudi Arabia appears
to have been defused for the time being.
     The Shiites, who comprise only about 5 percent of the Saudi
population, have traditionally suffered slights at the hands of
desert-dwelling Sunni tribes that have blood ties to the royal family.
     The Saudi rulers can scarcely ignore the Shiites if they want to
keep their oil flowing. The industrious Shiites hold roughly 40 to 60
percent of the manual jobs in the oilfields. Some of the main oil
pipelines to the coast run on the edge of Qatif, the biggest Shiite
community.
     Khalid did much to ease Shiite resentments last month when he
unexpectedly decided to grant a petition from the elders of Qatif for
the release of some 150 young Shiite demonstrators.
     They had been in jail since last year's bloody incident at the
Qatif oasis in which some 10 Shiite demonstrators and one Saudi
national guardsman were shot to death.
    The violence ignited when a visiting Iranian Shiite leader was
detained by Saudi authorities, allegedly for calling on local Shiites
to show allegiance to the Ayatollah Khomeini. His arrest led to
street protests on Ashura, the day of atonement on which Shiites
traditionally flagellate themselves.
    By contrast, this year's Ashura passed quietly.
    Among Shiite businessmen in the Eastern Province, word spread that
the Shiite elders had assured Khalid there would be no trouble this
year if he freed the demonstrators. In the meantime, Saudi national
guardsmen in Qatif have undergone training in riot-control tactics.
    A few days after releasing the demonstrators, Khalid and his
brother, Crown Prince Fahd, flew into the Eastern Region for a 10-day
royal visit. Touring from town to town, the king's entourage
announced sewer, irrigation and housing developments at every stop.
    Although they skipped Qatif, the official Saudi Gazette noted a few
days later that the Ministry of Agriculture was establishing a
project there to grow 240 tons of vegetables a year. A sewer project
has also been authorized.
    On the western edge of Saudi Arabia, this year's annual pilgrimage
to Mecca by 1 million Moslems also passed without incident.
    Last year a group of perhaps 350 fundamentalist fanatics burst into
the Sacred Mosque that encloses the Kaaba, Islam's holiest site. They
demanded, among other things, that all Shiites be banned from
worshiping at the Kaaba.
    For two weeks they holed up in the mosque's labyrinth until they
were finally routed. Their leader, who proclaimed himself the Mahdi,
or messiah, was killed in the fighting and 63 of his followers were
later executed.
    The calm in Mecca this year has tended to strengthen the view that
the appearance of the self-proclaimed Mahdi was a purely religious
happening that marked the start of the 1,400th year of Islam, rather
than an attempted coup against the royal family.
    In some high Saudi circles, it is said that the greatest ''threat''
to the stability of Saudi Arabia's monarchy comes not from some
obscure sect in the desert but from continuing American pressure for
high oil production.
    Saudi Arabia spends an astonishing amount of money, much of it
wisely but with instances of blatant waste. Everyone seems to know a
story about a lavish housing project that remains vacant for several
years or a young prince winning a $60 million contract from a
ministry in which his father has influence.
    The country is building three of the largest airports in the world,
streets lined with new marble ministries, mosques, airbases,
industrial cities, housing projects, universities and palaces by the
dozen.
    Even so, Saudi Arabia cannot come close to spending all it earns. By
informal estimates, government spending inside Saudi Arabia will run
near $80 billion this year, while oil revenues will exceed $100
billion.
    As a consequence, many educated Saudis would like to see Fahd cut
back on oil production so that more oil will stay in the ground for
future generations. Fahd has given no sign so far that he will do so.
Distributed by The N.Y. Times News Service
    
nyt-12-22-80 1228est
**********

a205  0953  22 Dec 80
AM-Foreign Briefs,520
    TEL AVIV,Israel (AP) - A glass of wine or a bottle of beer a day,
plus sexual activity, helps prevent heart attacks, according to an
Israeli heart specialist.
    Dr. Mordechai Levin, head of the heart disease prevention center at
Soroka Hospital in Beersheba, says his research showed less
likelihood of a heart attack among those who drank ''reasonable''
amounts of alcohol than among non-drinkers.
    He also recommended physical excercise plus lowering of tension, and
noted that sex was the perfect combination of the two.
    ---
    HAMBURG, West Germany (AP) - A battle between police and opponents
of a nuclear power plant under construction near here left 20 officers
injured, authorities said Monday.
    State Interior Minister Uwe Barschel said that about 400 of the
4,000 protesters threw rocks, torches and about 100 firebombs at
police guarding the construction site during the demonstration Sunday.
    Farmers, environmentalists and other opponents of the plant near the
Elbe River took part in the demonstration. There was no immediate
word of arrests or injuries among the demonstrators.
    The demonstration was peaceful Sunday afternoon, but fighting broke
out at nightfall when small groups of protesters tried to break
through police barricades, authorities said. Police responded with
tear gas and water barrages from fire hoses.
    ---
    ATHENS, Greece (AP) - Greece's air traffic controllers began a
48-hour strike Monday, forcing cancellations of some international and
domestic flights.
    The government, acting under special legislation to try to keep the
airports operating over the busy holiday period, revoked the right of
some controllers to strike.
    The strikers, whose average pay is the equivalent of $650 a month,
were demanding changes in pay schedules for working weekends, overtime
and holidays.
    ---
    POMPEII, Italy (AP) - A small section of the ruins of Pompeii
reopened to the public Sunday, almost a month after it was closed
following the devastating Nov. 23 earthquake in this region of Italy.
    Authorities reopened only the Villa of Mysteries, which contains
some of the best examples of ancient Roman wall paintings. After New
Year's Day, the street from Via delle Tombe to Porta Ercolano will
reopen, and most of the rest of Pompeii will reopen in mid-January.
    The quake damaged more than 100 buildings in Pompeii, the bustling
city buried by the eruption of Mount Vesuvius in 79 A.D. Authorities
have been under pressure from tour operators to reopen at least part
of the ruins.
    ---
    BONN, West Germany (AP) - West Germany has agreed to sell submarines
to Chile and four other non-NATO countries, despite controversy here
over the transactions, government spokesman Kurt Becker said Monday.
    The other countries are Indonesia, Peru, Argentina and India. Becker
said planned sales of submarines to Iran were canceled when the
Shah's regime was overthrown last year.
    The planned delivery of two submarines to Chile has been condemned
by government and private groups who accuse the right-wing Chilean
military government of repression. Informed sources said the
submarines designated for sale were modern weapons, but Becker gave no
information about their type, nor did he reveal the number being
built for the other recipients.
    
ap-ny-12-22 1253EST
**********

a207  1000  22 Dec 80
PM-US-Hostages, 1st Ld, a014,220
URGENT
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - The State Department today registered ''deep
concern'' about several of the American hostages in Iran and said a
number of them may be in prison.
    Spokesman John H. Trattner said the Americans are not receiving
adequate medical attention and many of the 52 have not been heard from
recently.
    ''We would welcome any improvement in the circumstances in which
they are being held,'' Trattner said. ''Contrary to Iranian reports in
recent days that they hostages are now housed in luxury hotels, we
have reports that a number of them may, in fact, be in prison,''
    The U.S. spokesman reiterated that the government of Iran will be
held accountable for the well-being of all of the hostages. He said
Iran had not respected even minimal standards of treatment expected of
the world community.
    Trattner said he did not know how many Americans may be in prison or
on what grounds. Another U.S. official said the information came in
letters from hostages.
    The State Department took this hardened line after Iran's latest
terms were denounced as unreasonable by Secretary of State Edmund S.
Muskie. Hopes for a Christmas homecoming appear to have evaporated.
    Defense Secretary, 2nd graf.
    
ap-ny-12-22 1301EST
**********

a211  1023  22 Dec 80
PM-Iran Hostages, 1st Ld-INSERT,a089,60
UNDATED: to update with State Dept. expressing concern over hostages,
insert after 3rd graf: The new . . . be met.
    An Iranian official said Sunday the hostages were in good health and
had been transferred to ''very beautiful hotels'' at undisclosed
locations. But in Washington today U.S. officials said letters from
hostages indicated that some of the captive Americans may be in
prison.
    State Department spokesman John H. Trattner also said the hostages
were not receiving adequate medical care.
    The British: 4th graf
    
ap-ny-12-22 1324EST
**********

a212  1028  22 Dec 80
PM-Iran-Quake, 2nd Ld, a081,190
Eds: Recasts lead with ''several'' dead, new grafs 4-6, other towns
affected, epicenter, ambulances dispatched
    NICOSIA, Cyprus (AP) - A moderately strong earthquake struck Tehran,
the holy city of Qom and other central Iranian cities today, killing
''several people,'' according to Tehran Radio.
    The broadcast said an old man and a child were killed in Qom and a
number of other persons died in the Dastgerd district near the holy
city.
    The quake, measuring 5.3 on the Richter scale, was the second to
rock central Iran in four days. It struck at 4:23 p.m. local time
(7:53 a.m. EST) and was also felt in the towns of Tafresh and Arak,
which with Qom are in an area 80 to 150 miles south of Tehran.
    The towns of Saqqez, Kashan, Khomeyn, Qazvin, Saveh and Aligudarz
also reported feeling the tremor. Tehran radio said the quake's
epicenter was 120 miles southwest of Tehran.
    The radio quoted the official Pars news agency as reporting that 32
injured had been taken to the hospital in Qom. Several people were
said to have been injured in the collapse of an old public bath.
    Medical teams and ambulances were dispatched to Dastgerd, the radio
said.
    Last Friday: 4th graf
    
ap-ny-12-22 1329EST
**********

a224  1145  22 Dec 80
AM-Iran Hostages, Bjt,690
Parliament Speaker Threatens Trials if U.S. Rejects Demands
Laserphotos TEH1,2 LON1
By The Associated Press
    Iran's Parliament speaker, vowing his country will stick to its $24
billion demand for the release of the 52 hostages, threatened anew
Monday to put the Americans on trial if the United States does not
agree to Iran's financial terms.
    ''I have not yet seen the official U.S. reaction. But if the U.S. is
not ready to give us our rights our last act will be a trial,''
Parliament Speaker Hashemi Rafsanjani told a Tehran news conference.
    Secretary of State Edmund S. Muskie has effectively rejected Iran's
latest demands, calling them ''unreasonable.'' But a formal reply
probably will not be completed until later this week, U.S. officials
said Monday.
    Iranian Prime Minister Mohammad Ali Rajai was quoted by the Syrian
news agency as saying in an interview that if the United States does
not meet Iran's demands ''the whole issue will be returned to the
Parliament in order to take new decisions.''
    He did not specify what those decisions might be. But Rafsanjani
noted that the Parliament, or Majlis, ''has already given its
instructions if the U.S. does not accept. The Majlis has said they
(the hostages) should be tried.''
    An aide to Rajai told a reporter in Tehran the Iranians would await
the delivery of the U.S. response through Algerian intermediaries
before deciding their next steps.
    The Iranian demands and U.S. reaction meant the 52 Americans would
be spending their second Christmas in captivity. A new parliamentary
debate could mean the standoff will drag on for weeks.
    An Iranian official claimed Sunday the hostages had been transferred
to ''very beautiful hotels,'' and unconfirmed reports circulated in
Tehran that the new, undisclosed location was a former palace on the
Caspian Sea coast north of Tehran.
    But U.S. officials said in Washington that letters from hostages
indicated that some of the Americans were in prison. State Department
spokesman John H. Trattner, expressing ''deep concern'' for the
hostages, also said the Americans were not receiving adequate medical
care. He reitereated that the Iranians will be held accountable for
the well-being of their captives.
    Penne Laingen, wife of hostage Bruce Laingen, the U.S. Embassy
charge d'affaires, told reporters 18 of the 52 captives had not been
heard from since July, and six have been incommunicado since April.
    Swiss diplomats representing U.S. interests in Tehran said Monday
they still had not received word from the Iranians on whether a
Protnt and a Roman Catholic clergyman will be allowed to conduct
services with the hostages Christmas Day.
    At the Vatican on Monday, Pope John Paul II, in what clearly was an
appeal on behalf of the captive Americans, called with ''tears in my
eyes'' for the release of hostages seized for ''political
retaliation'' or ransom.
    Ever since the U.S. Embassy and hostages were seized Nov. 4, 1979,
the Iranians have repeatedly threatened to put the Americans on trial
as ''spies.'' Over the months, more than a half-dozen of the hostages
have been accused by name of specific acts of alleged espionage.
    The Carter administration has warned Iran that the United States
would regard such trials as a grievous act.
    Tehran's largest-circulation newspaper, Kayhan, gave the prospect of
a hostage trial front-page treatment Monday, saying the U.S. reaction
to Iran's position increases the likelihood for such a proceeding.
    Over the weekend, the Iranians released the text of their new,
complex financial demands on the United States for release of the
hostages.
    They want the United States to deposit some $24 billion in cash and
gold with the Algerian central bank as a guarantee that assets the
Iranians consider rightfully theirs are returned from the United
States.
    Some U.S. officials have denounced the terms as ransom demands -
equivalent to $460 million per hostage - and beyond the capacity of
the U.S. administration. Muskie said the standoff may well extend
beyond Jan. 20, when Ronald Reagan is inaugurated president.
    Rafsanjani, a powerful member of Iran's dominant Islamic Republican
Party, told reporters ''it makes no difference'' whether President
Carter or Reagan handles the negotiations.
    ''We have no intention of backing down from our demands,'' he said.
    
ap-ny-12-22 1447EST
**********

a230  1240  22 Dec 80
AM-Reagan-Cabinet, Bjt,800
Cabinet Names Four More Cabinet Members
By ANN BLACKMAN
Associated Press Writer
    WASHINGTON (AP) - President-elect Ronald Reagan fulfilled his pledge
to feminist and minority groups Monday by appointing a woman and a
black to Cabinet-level positions as he announced four new members of
his administration
    New York attorney Samuel R. Pierce was chosen to head the Department
of Housing and Urban Development and Georgetown University professor
Jeane J. Kirkpatrick was named ambassador to the United Nations, the
first American woman assigned that post.
    Reagan also named conservative Colorado attorney James G. Watt as
interior secretary and former South Carolina Gov. James B. Edwards as
energy secretary.
    Reagan said in a written statement that the four latest nominees
''share with me a commitment to improve the quality of life for all
the American people .... I know the American people will be impressed
with their ability, enthusiasm, dedication and creativity.''
    The four new names bring the total of Reagan's Cabinet-level
selections to 14. Still to be announced are his choices for the
departments of Agriculture and Education. Also, he must still choose
his special trade representative, a position that may be given
Cabinet-level status.
    The four new nominees appeared at an afternoon news conference at a
downtown hotel with two other appointees, retired Gen. Alexander M.
Haig Jr. and New Jersey construction executive Ray Donovan, Reagan's
choices for secretaries of state and labor.
    The new nominees declined to discuss their general policy views,
saying it would be inappropriate until their Senate confirmation
hearings that are scheduled to begin early next month.
    Haig, however, disclosed that he has hired former HEW Secretary
Joseph A. Califano as his attorney to prepare for the Senate
confirmation hearings, specifically to handle questions relating to
his role in the Watergate scandal.
    Haig's nomination has drawn protests from Democrats who question his
role in the scandal when he served as Richard M. Nixon's last chief
of staff.
    Haig declined to say whether he had any of his own ideas for
obtaining release of the American hostages in Iran, saying it would be
inappropriate while President Carter is in office. He said he had a
detailed discussion on the subject with top Carter administration
officials.
    Watt acknowledged that he is a member of the ''sagebrush
rebellion,'' a group opposed to Interior Department land management
policies in the West.
    Watt said he favored a balanced land policy that does not limit use
of federal lands for one particular purpose, such as strict
conservation that bars economic development.
    Reagan continued his practice of not appearing at the announcements
and remained near his home in Pacific Palisades, Calif.
    Transition press secretary James Brady, who made the announcements,
said the post of U.N. ambassador will be a Cabinet-level job, as it
has been during the Carter administration.
    Brady said additional Cabinet announcements would be made Tuesday,
but he would not elaborate.
    Reagan was expected to name Illinois Agriculture Director John R.
Block as agriculture secretary, but the announcement was postponed.
    Sources said that Block, owner of a 3,000-acre farm, apparently was
still in line for the job but that his FBI check may not have been
completed in time for Monday's announcement. They speculated that
Reagan decided to save the announcment for Tuesday when the transition
team may also disclose the choice for education secretary, a post
that has been hard to fill because of Reagan's pledge to eliminate the
department.
    Of those announced Monday, Mrs. Kirkpatrick, 53, is a political
science professor at Georgetown University and a member of the
American Enterprise Institute, a conservative think tank based in
Washington.
    A longtime Democrat, Mrs. Kirkpatrick first came to Reagan's
attention last year when she wrote an article in a foreign policy
magazine. Reagan was impressed by the piece and wrote her a fan
letter, requesting a meeting. Mrs. Kirkpatrick later served on
Reagan's transition foreign policy task force and helped prime him for
the presidential debates last summer.
    Pierce, 58, was named to the board of the Prudential Insurance Co.
of America in 1964 and eventually was invited onto the boards of seven
corporations, including General Electric Co. His previous Washington
posts have included assistant to the undersecretary of labor in the
Eisenhower administration, counsel to the antitrust subcommittee of
the House Judiciary Committee, and general counsel in the Treasury
Department during the Nixon administration.
    Edwards, 53, an oral surgeon in Charleston, S.C., was governor from
1975 to 1979. He has said he would enjoy presiding over the demise of
the 2-year-old Energy Department which Reagan vowed during the
campaign to dismantle.
    Watt, 42, heads a legal defense foundation that has contested
federal environmental regulations. His apppointment is sure to draw
criticism from environmental groups.
    
ap-ny-12-22 1541EST
**********

a250  1501  22 Dec 80
AM-US-Iran,580
State Dept Voices Worries Over Treatment of Hostages
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - The State Department, contradicting Iranian
statements that the American hostages are being well cared for in
sumptuous surroundings, said Monday some of the captives may be in
prison while others are suffering from inadequate medical attention.
    The statement by department spokesman John Trattner broke a lengthy
administration silence about the well-being of the 52 Americans.
    It followed a comment on Sunday by Iranian Executive Affairs
Minister Behzad Nabavi that the hostages were ''hale and hearty'' and
''living in beautiful hotels, with all sorts of facilities at their
service.''
    Trattner gave no details on the number of hostages the
administration believes require medical treatment or are in prison.
    Nonetheless, disclosure of the information was additional evidence
of the administration's decision to adopt a tougher public posture
toward Iran following Iran's request for $24 billion in financial
guarantees as the price for freeing the hostages.
    ''The government of Iran has never given us a person-by-person
account of the hostages or of their condition,'' Trattner told
reporters.
    ''We have reason to be concerned about the health and treatment of
several of the hostages and believe they are not receiving adequate
medical attention.
    ''Contrary to reports of recent days, we have reports that a number
of them may, in fact, be in prison.''
    Iran, Trattner said, ''has not respected the minimal standard of
treatment or accountability expected by the world community.''
    Until Monday, the administration had insisted it had not been
informed of the whereabouts of the hostages since the abortive U.S.
military rescue mission in April.
    Trattner's comments raised the possibility that cooperative hostages
were being treated well while the remainder faced imprisonment.
Previously unconfirmed reports had suggested some hostages had been
detained at Evin Prison in Tehran but Trattner said he had no
information.
    Before Trattner spoke, Penne Laingen, wife of one of the hostages,
said 18 captives had not been heard from since July and that there had
been no word from six others since April. Trattner suggested Mrs.
Laingen's figures were correct.
    Mrs. Laingen's husband is L. Bruce Laingen, who was U.S. deputy
chief of mission in Tehran. He is one of three Americans detained at
the Iranian Foreign Ministry since the crisis began on Nov. 4, 1979.
    Until Sunday, when Iran spelled out its financial demands, the
administration had been unusually reserved in its public comments on
Iran. It had avoided any adverse comment about Iran in hopes of
keeping on track the negotiating process that began seven weeks ago.
    Trattner's statement Monday, coupled with critical remarks on Sunday
by Secretary of State Edmund S. Muskie, suggested a shift in the
administration's public position.
    Trattner said the administration still had not decided what its next
step would be but he ruled out the possibility of setting the problem
aside during its remaining four weeks in office.
    ''We certainly are not going to abandon the effort to free the
hostages,'' he said.
    Meanwhile, White House press secretary Jody Powell said President
Carter believed that meeting Iran's demand for a multibillion-dollar
cash guarantee before the U.S. hostages could be released would
violate America's ''national honor'' as well as its laws.
    Powell said the United States had not formally responded to the
Tehran government's latest conditions for the 52 hostages' release but
that the official message ''will be in no way inconsistent'' with
Muskie's statement on Sunday that the terms are unreasonable.
    
ap-ny-12-22 1802EST
**********

a259  1550  22 Dec 80
AM-Iran-Iraq War,290
Iran Claims Successes, Iraq Denies Losing Ground
By KATE DORIAN
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iran claimed Monday its counter-attacking
troops forced Iraqi invaders to retreat from positions in the western
highlands and the southwestern oil province of Khuzistan. Iraq said
both Iranian drives were ''crushed'' and claimed Iran lost nearly 300
killed.
    Iranian war communiques claimed Iraqi troops were forced out of
''several fortified positions'' in the foothills of the snow-covered
Zagros mountain range in western Iran. The range commands the main
highway to the Iraqi capital of Baghdad, 100 miles to the west.
    Iran claimed 130 Iraqi soldiers were killed and 21 captured as
battles raged in the Sar-e-Pol-e-Zahab district and the Gilan Gharb
province at the northern end of the 300 mile battlefront. Iran
conceded the deaths of 10 of its paratroopers.
    Iraq said its forces killed 297 Iranians overnight and Monday and
conceded the deaths of 55 Iraqis in fighting in the highlands and the
southern Khuzistan region around the Iranian refinery city of Abadan.
    Iran said its counterattackers forced the Iraqis back four miles
from positions near the Khuzistan highway town of Susangerd, 80 miles
north of Abadan. Iraq denied the claim.
    The two sides claimed fresh air attacks on each other's oil
installations. Iraq said its helicopter gunships attacked the giant
oil refining complex at Abadan, which has been burning since the early
stages of the war, setting another oil storage tank afire.
    Iran said it retaliated by bombing Iraqi installations in the
Rumaila oilfield in southeastern Iraq and the oil loading terminal of
Khor al-Amaya at the northwestern tip of the Persian Gulf at the
mouth of the disputed Shatt al-Arab waterway.
    The oil centers of both petroleum exporting nations have been
severely damaged as a result of repeated air and artillery attacks in
the 14 weeks of the war.
    
ap-ny-12-22 1852EST
**********

n070  1602  22 Dec 80
AM-HOSTAGES
Iran Says Hostages Will Be Tried Unless U.S. Puts up $24 Billion
By JOHN KIFNER
c. 1980 N.Y. Times News Service
    TEHRAN - The speaker of Iran's Parliament said Monday that the
American Embassy hostages will be tried if the United States fails to
meet the conditions set for their release.
    ''It is a just and fair answer we have given,'' Hojatoleslam Hashemi
Rafsanjani said of the Iranian demand that the United States put up
some $24 billion in ''guarantees'' for the return of the frozen
Iranian assets and the late shah's wealth.
    Sunday, Secretary of State Edmund S. Muskie described the latest
Iranian position in the 13-month-old crisis as ''unreasonable'' and
beyond the capacity of the president.
    ''We haven't yet received any official answer from the United
States,'' Rafsanjani told a news conference Monday afternoon.
''Anyway, if the United States is not ready to give us our demands,
it will end in a trial.''
    The Iranian officials who have been working on last week's message
to the United States calling for the multi-billion dollar deposits in
the Algerian Central Bank had apparently genuinely thought they had
devised a way out of the long crisis. Most were silent Monday as word
of Muskie's rebuff reached here.
    The possibility of putting all or some of the 52 hostages on trial
as ''spies'' has been raised at a number of points over the past year
and has often been brought up as the last resort if an agreement
could not be reached for release.
    Monday, the afternoon Persian language newspaper, Kayhan, carried a
banner headline, ''U.S. Opposes Financial Guarantees for Release of
Hostages,'' with a smaller headline reading, ''Possibility of Trial
of Hostages Increased.''
    A second afternoon daily, Ettela'at, also raised the possibility of
spy trials and repeated the theme of anti-Americanism that has run
through the remarks of revolutionary leaders here.
    ''What is important is our first and last words, to prove to the
world that resistance and victory against the superpowers is
possible,'' the newspaper, which currently reflects the views of the
clerically dominated parliamentary group in power said in an
editorial. ''The most important thing is that we should never forget
the United States is the Great Satan.''
    The editorial continued by telling the story of ''the science
teacher who was asked by his students if a fly can walk on its tail.
'From such an animal anything is possible,' the teacher replied. And
we say from this great satan of the century, compared to whom even
the fox is simple and stupid, anything is possible''
    The editorial said that it was necessary to get the money first
because ''it is even possible that after getting the spy hostages,
(he) America won't keep his word and with thousands of stories that
he will make up, portray us as bribers, monopolists, selfish and so
on. ''
    Rafsanjani struck a similar note saying at his news conference,
''Since the beginning, we have said that the United States is our No.
1 enemy and is wounded and angry, and they have done as much as they
could against us and our revolution because of this anger and they
will continue.''
    Asked if the hostage issue might now go back to Parliament, the
speaker said, ''I don't think so. We have already said this.''
    Rafsanjani continued, ''Our stand was clear since the beginning. We
have said it before and we are still of the same viewpoint on the
hostages. Our demands are the same and we will not take one step
back. We are not frightened by the threats of the United States. They
have done this before.''
    
nyt-12-22-80 1903est
**********

n072  1623  22 Dec 80
AM-CABINET 2takes
Reagan Announces Five More Cabinet Members
By STEVEN WEISMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - President-elect Ronald Reagan Monday announced the
selection of five more Cabinet members, including the first woman,
the first Democrat and the first black named to serve in his Cabinet.
    The selections made public Monday were James G. Watt, a Colorado
lawyer and proponent of economic development of federal lands,
secretary of interior; John R. Block, former Illinois director of
agriculture, secretary of agriculture; Samuel R. Pierce Jr., a black
who is a New York City lawyer and former judge, secretary of housing
and urban development; James B. Edwards, former governor of South
Carolina, secretary of engery, and Jeane J. Kirkpatrick, professor of
government at Georgetown University, United States representative to
the United Nations.
    The announcement Monday left only two Cabinet or Cabinet-level
positions unfilled, aides to Reagan said: education secretary and
special trade representative. One senior aide said Reagan had not yet
settled on a choice for the education post, but he hoped to be able
to announce this choice before Christmas.
    Transition officials also said the choice of special trade
representative was becoming caught up in a disagreement over the
amount of status to be accorded the job. Some Reagan aides favor
making the job subordinate to the Commerce Department, but many
Republicans argue that it be retained as an independent,
Cabinet-level position.
    At a news conference Monday afternoon, four of the Cabinet choices
named Monday appeared along with two men selected last week:
Alexander M. Haig Jr., the retired Army general, who was designated
secretary of state, and Raymond J. Donovan, the New Jersey
construction executive, who was chosen secretary of labor.
    Haig said he was prepared to answer any questions from the Senate
Foreign Relations Committee regarding his behavior as former chief of
staff to President Richard M. Nixon during the Watergate scandal.
    He disclosed further that he had hired Joseph A. Califano Jr., a
prominent Democrat and former secretary of health, education and
welfare, to serve as his counsel for the confirmation proceedings.
The selection of Califano, who has long been identified with
Democratic causes, was seen by aides to Reagan as something of a coup
in the battle of nerves that has already begun between the
president-elect's office and Democrats in the Senate.
    ''I think it's important for all of us to keep in mind,'' Haig
declared, ''that I have appeared before several grand juries, Senate
investigating committees, courts of law, on these subjects, and
nothing during that period indicated any culpability on my part. That
has been reaffirmed recently by Mr. Leon Jaworski, the chief
prosecutor at the time.''
    Haig, now president of United Technologies Corp. of Hartford, Conn.,
said he would avoid detailed discussion of foreign policy issues
until his confirmation hearings, which are due to begin Jan. 9.
    But he said he was ''generally inclined always'' to support the
incumbent administration on such ''important issues'' as the
apparently deadlocked negotiations to secure the release of the 52
American hostages held captive in Iran.
    At the same time, Haig repeated an earlier general criticism of the
administration when he said, ''I think it goes without saying that
America today has experienced a number of setbacks internationally.''
Among these were a loss of international prestige, he said, adding
that as secretary of state, he would work to ''to seek a world
structured on the Christian-Judaeo values that you and I cherish
today.''
    Missing from the lineup of newly announced Cabinet officers Monday
at the Mayflower Hotel here was Block, designated agriculture
secretary. His name was not scheduled to be announced Monday, until
Reagan confirmed it in Los Angeles to reporters.
    ''I think it is a Cabinet of great quality,'' the president-elect
said during the visit to a doctor for a regular checkup of his left
ear, impaired since Reagan's days as a film actor. ''I think it
should inspire confidence in the people in almost every field as to
what we are trying to do.''
    Reagan was asked why Block's name was not included in the
announcements Monday. ''It just could be the process,'' he said,
evidently referring to the length procedure of security clearances
that his choices have had to go through. Reagan confirmed that Block
was his choice, and his office here said Block would appear at a news
conference Tuesday.
    (MORE)
    
nyt-12-22-80 1924est
**********

a268  1646  22 Dec 80
AM-Haig,300
Haig Getting Legal Help From Califano
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - Secretary of State-designate Alexander M. Haig
Jr., facing Senate questioning on his role in the Watergate scandal,
is getting legal help from Joseph Califano, a prominent lawyer who
served in President Carter's Cabinet.
    Disclosing he had met with Califano over the weekend, Haig said at a
news conference Monday that in all the investigations already held,
''nothing indicated any culpability on my part.''
    Still, Haig said that when senators examine his role under former
President Richard M. Nixon, he will ''address the full gamut of their
concerns.''
    Haig, 56, served as Nixon's chief of staff as the Watergate scandal
forced the president to resign. The former NATO commander faces
questioning also on the wiretapping of government officials and
reporters and on the secret bombing of Cambodia during the Nixon
years.
    Haig's nomination has stirred controversy among Senate Democrats.
Sen. Edward M. Kennedy of Massachusetts said last week the selection
raised serious questions that had to be resolved. Sen. Alan Cranston
of California asserted the nomination ''should not have been made.''
    Haig said he began preparing for the hearings over the weekend with
Califano, describing the former secretary of health, education and
welfare as ''a very dear, old friend of mine.''
    Haig told reporters that Senate investigators, grand juries and Leon
Jaworski, the special Watergate prosecutor, had found no fault with
his activities during the Watergate period.
    Haig held his first transition discussion with Secretary of State
Edmund S. Muskie Monday morning. They talked about the U.S. hostages,
held in Iran for 13 1/2 months, but Haig carefully avoided giving his
opinion when he was questioned by reporters.
    ''At this juncture we have one president and one secretary of
state,'' he said. ''I think it behooves all of us to rally behind this
government so long as it remains in office.''
    
ap-ny-12-22 1947EST
**********

a269  1653  22 Dec 80
AM-Hostage Families,330
Families Oppose Payments to Iran
With AM-Iran Hostages Bjt
By The Associated Press
    Relatives of some of the 52 American hostages said Monday they
opposed paying the billions of dollap∪ the Iranians have demanded as
the price of freedom for their captives.
    ''I see it as blackmail, pure and simple,'' said Dorothea Morefield,
wife of Richard M. Morefield, 51, who was the U.S. consul general in
Tehran when the embassy was seized Nov. 4, 1979.
    Mrs. Morefield, of San Diego, said the Iranians holding the hostages
were ''a bunch of terrorists who have kidnapped our people. Now we
see them for what they are. No, we can't pay it (the money).''
    Betty Scott of Stone Mountain, Ga., wife of Army Lt. Col. Charles
Scott, 48, said the demand was ''ridiculous.''
    The Iranians have said the hostages could be freed if the United
States would deposit some $24 billion in the Algerian central bank as
a guarantee that Iran's financial demands on the United States will
be met. The speaker of the Iranian parliament repeated his threat on
Monday that the hostages would be tried as spies if the money were not
paid.
    Mrs. Morefield said she did not agree with Lawrence Persinger, the
father of Marine Sgt. Gregory Persinger, 22, who called for action by
the United States to free the hostages. The elder Persinger said he
would blockade the Persian Gulf.
    ''I'd give them so long and then I'd go in there and get them (the
hostages),'' Persinger said at his home in Seaford, Del.
    Mrs. Morefield said she was ''afraid an overt action like that would
solidify the area against the U.S.''
    Richard Hermening of Cudahy, Wis., father of Marine Sgt. Kevin
Hermening, 20, said of the demand for money: ''Putting $24 billion in
some Algerian bank, why do they think that the United States has all
this money to give them?''
    Victor Lauterbach, the brother of Steven Lauterbach, 28, a foreign
service employee, said: ''We can't pay it.'' He also said: ''Our
thought is we haven't waited a year and two months to submit to
blackmail now.''
    
ap-ny-12-22 1954EST
**********

a270  1700  22 Dec 80
AM-Pope,340
Pontiff Pleas for Hostages
With AM-Iran Hostages Bjt
By ROBERT MCCARTNEY
Associated Press Writer
    VATICAN CITY (AP) - Pope John Paul II, in a plea clearly aimed at
Iran, appealed Monday for release of hostages seized for ''political
retaliation'' or ransom.
    In his annual Christmas message to Roman Catholic cardinals, the
pontiff said he prayed with ''tears in my eyes'' that those holding
hostages would take pity on their victims.
    ''We will not forget the hostages who are still without freedom in
various parts of the world, victims of political retaliation or of an
unjust, unthinkable pecuniary speculation,'' the pontiff said.
    ''I am close to them with prayer, at this Christmas which will be
sad for them; for all of them I pray to the Lord with tears in my
eyes, asking those responsible to have pity, in the name of God and in
the name of man.''
    He did not mention specific cases, but clearly was alluding to the
American hostages in Iran. His remarks could also be applied to the
numerous kidnap cases in Italy.
    Over the weekend, Iranian authorities announced the hostages would
not be released unless the United States deposits $24 billion in cash
and gold in the Algerian central bank as a guarantee that Iran's
financial demands will be met.
    On the same occasion last year, John Paul said the holding of the
hostages in Iran was a ''violation of unquestionable principles of
internationa
 law.''
    The pope made several vain efforts to help win freedom for the
Americans, including sending a personal representative to Tehran, who
was rebuffed by Iranian leader Ayatollah Ruhollah Khomeini.
    On other matters, the pontiff:
    - Said ''sinister shadows'' were hanging over the world and deplored
threats to peace in the Middle East, Afghanistan and elsewhere.
    - Declared about the unrest in Poland, his homeland, ''I share
intimately in the anxiety, the concern and the hopes of my beloved
country.''
    - Expressed concern about tensions in Lebanon and Ireland and ''the
grave violence that has bloodied some of the beloved countries of
Central America and which continues to claim victims.''
    
ap-ny-12-22 2001EST
**********

n079  1730  22 Dec 80
AM-HOSTAGES-U.S.
U.S. Says Some Hostages May Be in Iranian Prisons
By BERNARD GWERTZMAN
c. 1980 N.Y. Times News Service
    WASHINGTON - The United States expressed concern Monday over
treatment of the 52 Americans held in Iran, saying several of them
may be confined in prisons.
    This was the first time since April that the Carter administration
has publicly complained about the well-being of the hostages. The
action coincided with the apparent breakdown in the indirect
negotiations that followed Iran's demand that the United States
deposit nearly $24 billion in an account in Algeria to secure their
freedom.
    John H. Trattner, State Department spokesman, said he was providing
the information about the status of the Americans to rebut the
assertion Sunday by a senior Iranian official that the Americans were
living in hotels and were being very well-treated.
    The United States learned of the less-than-favorable conditions of
the hostages in recent weeks, officials said, but did not publicize
the information while the indirect negotiations seemed to be making
progress. They said the administration might have remained silent had
it not been outraged by claims that the hostages were living in
luxury conditions.
    It was also revealed Monday that another source of concern was that
6 of the 52 hostages have not been heard from since the abortive
rescue mission in April and a total of 18 have not sent letters since
July. It is believed that those who have not been able to send
letters are political officers or others accused of being spies.
    Behzad Nabavi, Iranian minister of state for executive affairs, said
at a news conference Sunday that not only were the hostages in hotels
but that they were ''well-treated and content'' and would be
interviewed on television Christmas Day.
    Trattner said, however, that ''we remain deeply concerned about the
hostages' well-being.''
    ''The government of Iran has never given us a person-by-person
account - has refused to do so - of the hostages or their
condition,'' Trattner said. ''We have reason to be concerned about
the health and treatment of several of the hostages and believe they
are not receiving adequate medical attention.''
    ''Contrary to Iranian reports saying that they are housed in luxury
hotels, we have reports that many of them may, in fact, be in
prison,'' he said.
    He said Iran was responsible for the safety of the hostages and that
Iran ''has not respected even minimal standards of treatment or
accountability expected by the world community.''
    When pressed on the allegation that hostages were being held in
prison, he said: ''We have evidence that indicates that some of them,
a number, may be in prison. We have no indication of their geographic
location.''
    Officials said the primary source for the information was a spate of
letters received by family members in recent weeks. Some hostages
indicated that they were in prison, or ''prison-like'' conditions.
Many expressed concern for their physical condition, complaining they
were not receiving adequate medical care.
    The Iranians told Algerian intermediaries last month that they could
tell the United States that all 52 hostages were in good health and
being treated well, but the Algerians have not seen the Americans.
    Jody Powell, White House spokesman, said that if the Iranians want
the world to believe the hostages are well-treated ''they should
treat them well and then let in international observers.''
    Some officials said they expected Iran to stage a television show,
in which some of the hostages may be filmed in comfortable
surroundings, to dispel concerns.
    The United States had for many months avoided criticism of the
treatment of the hostages. Since the rescue failed in April, the
United States followed an approach that was as conciliatory publicly
as possible.
    In reviewing reasons why the United States could not accept the
demand for financial guarantees of $24 billion, Powell said such
conditions were impossible to meet legally and were morally
unacceptable.
    ''Their request for a cash guarantee against the claims is something
we cannot give under our laws and would not give even if it was legal
to do so,'' Powell said.
    President Carter believes, he said, that any American action to free
the hostages must be done in a way ''worthy of the suffering the
hostages had endured.''
    Other officials said the United States had told the Iranians it was
prepared to undertake steps that would have gone a long way toward
meeting their conditions. The United States would have lifted the
freeze on $8 to $11 billion in assets, and a few billion dollars
unencumbered by claims would have been transferred to an escrow
account in Algeria. Once the hostages were freed, the Iranians could
have taken that amount.
    The United States said it would have been willing to participate in
an international claims commission and would have accepted binding
arbitration in settling private claims.
    Once that commission was established, the administration said it
would have gone to court seeking dismissal of pending claims on the
grounds that the commission would be able to satisfy the American
claimants.
    As for the demand for the shah's assets, the United States would be
willing to order that the shah's assets be frozen and an inventory
taken. This could faciliate Iranian efforts in American courts to
recover the assets.
    These steps, the officials said, were consistent with American law
and honor and would not require appropriations from Congress. And
they would not appear to be ''ransom,'' as does the demand for $24
billion.
    
nyt-12-22-80 2031est
**********

a285  1823  22 Dec 80
AM-Iran Quake,190
Kills Three; Qom Hit Again
    NICOSIA, Cyprus (AP) - The third major earthquake in four days
struck central Iran Monday, killing at least three people and injuring
139, Iran's official Pars news agency reported.
    The Tehran University Geophysics Institute said the quake, measuring
5.3 on the Richter scale, was centered in an area 125 miles southwest
of the Iranian capital. It hit at 4:21 p.m. local time.
    Most early reports of damage and casualties came from the holy city
of Qom, 80 miles south of Tehran. Two stronger earthquakes struck Qom
a few hours apart last Friday, toppling golden-domed shrines and
killing at least 26 people.
    An old man and a child were reported to have been killed in Monday's
tremor in Qom, where a public bath collapsed, injuring scores. Other
casualties were reported in the Dastgerd district outside Qom, but
specific figures were not reported. Qom has been the headquarters of
Iranian leader Ayatollah Ruhollah Khomeini.
    The earthquake was also felt in Tehran, Saqez, Arak, Kashan,
Khomein, Qazvin, Saveh and Aligudarz, Tehran Radio said.
    Iran is one of the most earthquake-prone areas in the world. In the
past 25 years, several major quakes have each killed thousands of
people.
    
ap-ny-12-22 2124EST
**********

n106  2059  22 Dec 80
BC-O'CONNOR-TV ADV28 1stadd
(FOR RELEASE SUN DEC 28)
NYT NEW YORK: correspondent-anchorman.
    On public television, the old war horses continue their strong
showings. ''The MacNeil-Lehrer Report'' manages, against considerable
budgetary odds, to keep up with major breaking stories, and Bill
Moyers still brings his distinct personal touches to assorted essays,
most notably a survey of press coverage of Iran and a profile of
Judge Frank Johnson, a prominent Southern influence in the history of
civil rights. In addition, Moyers's series ''Campaign Journal''
offered the best coverage on television of the election campaign.
    On the cultural or pop-arts front, public television continued its
established domination. The ''Live From Lincoln Center'' and ''Live
From the Met'' series transmitted performances that cost paying
customers anywhere from $10 to $50 a seat. ''Dance in America''
offered, among other things, ''Two Duets,'' a showcase for the
choreographic talents of Jerome Robbins and Peter Martins. And then
there was Agnes de Mille holding forth grandly on ''Conversations
About the Dance.''
    But the commercial networks were hardly inactive on this front.
ABC's ''Baryshnikov on Broadway'' was a delightful showcase for the
indefatigable ''Misha'' and for Liza Minnelli. On CBS, Julie Andrews
and Rudolf Nureyev teamed for a bright survey of dance. Then, once
again, Silverman's NBC was admirably adventurous with ''Live From
Studio H,'' featuring Zubin Mehta and Leontyne Price and, another
time, several dances by Robbins, and with the ''NBC Live Theater''
presentation of ''The Oldest Living Graduate,'' which stretched the
language barriers of the medium. On a level of pure entertainment,
CBS's variety special ''Linda in Wonderland,'' starring Linda Lavin,
proved to be unusually imaginative.
    The better drama specials this year tended to be strengthened by
outstanding performances. On ABC, there was Lee Remick in ''The
Women's Room,'' Catherine Hicks in ''Marilyn: The Untold Story'' and,
Sunday night, Joanne Woodward and Christopher Plummer in ''The Shadow
Box.'' CBS had Brad Davis in ''A Rumor of War,'' Henry Fonda in
''Gideon's Trumpet,'' Alec Guinness and Ricky Schroeder in ''Little
Lord Fauntleroy,'' and Miss Remick, once again, in ''Haywire.'' More
controversially, there was Vanessa Redgrave being absolutely
brilliant in ''Playing for Time.'' And on NBC, Melissa Gilbert and
Joan Plowright brought renewed vigor to ''The Diary of Anne Frank.''
    Performances also dominated the public-television schedule.
Domestically, the system could boast of its ''American Short Story''
series with, among other superb credits, Eric Roberts in Willa
Cather's ''Paul's Case''; Geraldine Fitzgerald in Katherine Anne
Porter's ''The Jolting of Granny Weatherall,'' and Olivia Cole in
Ernest K. Gaines's ''The Sky Is Gray.'' Incredibly enough, the system
has lost the series because of a backstage scenario involving gross
incompetence.
    Public television's other major domestic pieces were contributed
primarily by independent producers, especially on a series like
''Non-Fiction Television'': ''No Maps on My Taps,'' a portrait of
veteran black tap-dancers, or ''Third Avenue,'' vignettes of ''real
people'' collected by Jon Alpert and colleagues. Otherwise, it was
well-acted British imports as usual. Alec Guinness was in ''Tinker,
Tailor, Soldier, Spy.'' Derek Jacobi in ''Hamlet''; Cheryl Campbell
in ''Testament of Youth''; Ralph Richardson and John Gielgud in
Harold Pinter's ''No Man's Land,'' and young Terry Wiles playing
himself in ''On Giants' Shoulders,'' a ''docudrama'' about a limbless
''Thalidomide baby.'' Musically speaking, Britain's ''All You Need Is
Love'' surveyed the pop scene, from jazz to punk, with unusual detail
and intelligence. From Germany came the Bavarian State Opera's lavish
and marvelous production of ''Der Rosenkavalier.''
    Public television did well, as usual, in the area of programming for
children and young people. ''3-2-1 Contact'' is brightly designed to
make assorted scientific concepts look easy. Both ''Righteous
Apples'' and ''Up and Coming'' offer appealing and enlightening
treatment of racial and social situations in these contemporary
United States. Not to be outdone, commercial television's ABC got Jim
Henson of ''Sesame Street'' to create a whole new set of Muppets for
a charming special called ''Emmet Otter's Jug-Band Christmas.''
    Finally, as in the beginning with J.R. and Fred Silverman, the fact
remains that television amounts to far more than a capsulizing of
prime-time programs. It is also the scandal attached to the
questionable balance sheets connected with ''Charlie's Angels.'' It
is the jeans commercials featuring nubile and ridiculously exploited
adolescents. It is the manipulative displaying of endless illnesses
and infirmities. It is the hustling of meaningless polls. When ABC
News took an instant telephone poll following the Carter-Reagan
debate, the network was widely criticized for being irresponsible or,
apparently worse, unscientific. As it turned out, the ABC poll,
heavily favoring Reagan, proved to be more accurate than any of the
supposedly scientific polls. That's television. It is a phenomenon
that defies just about all of the experts.
    
nyt-12-23-80 0000est
**********

n505  2318  22 Dec 80
BC-HAIG-12-23
    By Charles Corddry
    (c) 1980 The Baltimore Sun (Field News Service)
    WASHINGTON-A confident Alexander M. Haig Jr. says he has asked
long-time friend and prominent Washington lawyer Joseph Califano to
help him prepare his testimony on Watergate as the Senate prepares to
consider his nomination as secretary of state.
    Califano has long been associated with the Democratic party, whose
members can be expected to give Haig his toughest grilling in the
Republican-controlled Senate. The first secretary of Health,
Education and Welfare in the Carter administration was described by
Haig as ''a very dear old friend.'' The two men met when both held
Pentagon posts during Robert S. McNamara's term as defense secretary
in the 1960s.
    Haig, meeting the press Monday for the first time since his
nomination, spoke at a press conference called to introduce new
Reagan Cabinet appointees. The former top NATO general said he began
preparing for the hearings over the weekend with Califano.
    Haig's nomination has stirred controversy among Senate Democrats.
Sen. Edward M. Kennedy of Massachusetts said last week the selection
raised serious questions that had to be resolved. Sen. Alan Cranston
of California asserted the nomination ''should not have been made.''
    Haig, 56, served as Nixon's chief of staff as the Watergate scandal
forced the president to resign. The former NATO commander faces
questioning also on the wiretapping of government officials and
reporters and may be asked about the secret bombing of Cambodia
during the Nixon years.
    Haig said he had begun to steep himself in ''sensitive'' foreign
policy issues and showed some impatience with resurrection of
questions about his White House role during the Watergate affair. He
was former President Nixon's chief of staff.
    While he plainly preferred to get on with the problems he saw lying
ahead, Haig said he would go to Senate confirmation hearings prepared
to answer questions ''across the full gamut'' of concerns about what
he called ''past American history and my involvement.''
    Haig told his audience Monday to keep in mind that he had appeared
before grand juries, Senate investigating panels and a court of law
in connection with Watergate ''and nothing during that period
indicated any culpability on my part.''
    Haig indicated he looks forward to substantial changes in the course
of American foreign relations in the Reagan administration.
    He managed to give general support to President Carter and Secretary
of State Edmund S. Muskie in their handling of the hostage crisis
with Iran, while keeping open his options to deal with a problem that
almost certainly will still not be solved when he takes office.
    Before endorsing the specific handling of the impasse over Iranian
demands for cash guarantees, he said, he would want to ''know of what
I speak in greater detail,'' but it was his general inclination to
''support the president and the secretary of state on important
issues of this kind.''
    Discussing America's position in the world, Haig said the nation
''today has experienced a number of setbacks internationally and
there is a ''great deal of work to be done'' to restore prestige.
    He cited declining prestige among allies and friends in Europe, Asia
the Western Hemisphere and in the third world.
    It is third world countries, he said in evident reference to
American need for oil and other resources, ''upon whose future
goodwill, if not convergence of policy, our own vital interests so
fundamentally depend.''
    The United States, Haig went on, must and will decide whether ''we
are going to continue to seek a world structured on Judao-Christian
values . . . or whether we are going to risk turning over that task
to others.''
    This seemed a different form of Haig's earlier calls on the West,
under U.S. leadership, to devise a ''global strategy'' for countering
expansionism of a Soviet Union emboldened by its achievement of
nuclear equality with the United States.
    Given that his major diplomatic and military experience has been in
Europe, where he was commander of allied forces, Haig was invited to
spell out his ''world view.''
    He said he must withhold substantive answers on such questions until
his confirmation hearings, but still was able to convey the
impression of changes to come.
    ''It serves no useful purpose,'' Haig said, ''for me to try to
project a contrary or varying world view'' to that of the incumbent
administration.
    Asked about concerns over a military man - he is a retired Army
general - at the State Department, Haig said military men know better
than others the horrors of war and avidly want peace and
international stability.
    He recalled that Gen. George C. Marshall, was one of ''our
greatest'' secretaries of state and said he hoped he would be able to
make a ''somewhat comparable contribution'' in that office.
    Did he hope to go on from secretary of state to the presidency?
    He answered that he was leaving the ''comfortable circumstances'' of
a corporation presidency with no aim but recognition of ''very urgent
and very dangerous situations'' facing the country and a hope to
''contribute to resolving them successfully in behalf of President
Reagan.''
    ENDIT CORDDRY
    
nyt-12-23-80 0219est
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n510  0003  23 Dec 80
BC-KURDS-12-23
    By Andrew Borowiec
     (c) 1980 Chicago Sun-Times (Field News Service)
    ANKARA-in the windswept mountains of eastern Turkey, the ''orphans
of the universe'' are stirring again.
    This time the Kurds, that large nation-tribe of central Asia
deprived of statehood, are defying the military government ruling in
Turkey. Grenade explosions and the chatter of machineguns have
shattered the precarious peace which followed the september 12
military takeover.
    The response of the military authorities ruling in Ankara has been
swift. Close to 2,000 Turkish Kurds have been rounded up during the
past two weeks and most are expected to be put on trial soon.
    The military ''national security council'' of Gen. Kenan Evren has
no different policy toward the Kurdish minority of some eight million
than his civilian predecessors. Turkey, a nation of some 45 million
people, is ''one and indivisible.'' There are, officially, no kurds
in Turkey - mainly ''mountain turks.''
    The Kurds have a different view. Defying martial law, signs readin
''Azabi bo Kurdistan'' - Freedom for Kurdistan - have reappeared in
the easter city of Diyarbakir, center of the predominantly Kurdish
area - and also the site of one of the key American electronic
monitoring stations.
    This does not mean that the Turkish Kurds - part of a community of
some 16 million living in Turkey, Iran, Iraq and Syria-want
independence. Most Kurdish clandestine organizations would settle for
autonomy while many kurds in Turkey would be satisfied with being
able to use their language and foster their cultural traditions
freely.
    The late Kurdish leader, Gen. Mulla Mustafa Barzani, called his
people ''orphans of the universe.'' Among many such ''orphans''
throughout the world, the fate of the Kurds stands out with painful
brutality.
    They have fought war after war, uprising after uprising. Their women
and children left burning villages in Turkey, Iran and Iraq with no
hope and no future. Following the Islamic revolution in Iran, the
Kurdish minority there became one of the victims of the new regime.
    The situation is much less dramatic in Turkey. Most educated Turkish
Kurds have become assimilated. Their names are Turkish, many belong
to the dominant Sunni Moslem sect. There are frequent intermarriages
in the cities.
    The picture is different in the bleak countryside, that impoverished
''Kurdish belt'' of barren mountains and miserable villages, now
covered by layers of snow.
    The Kurds, at first, welcomed the military takeover in Turkey. Evren
was greeted by applause in Kurdish villages where he travelled by
helicopter. To the underprivileged Kurds, the military government
represented, above all, a return to law and order - and perhaps hope
for a better future.
    But the various political forces involved soon began to exploit the
unsatisfied national aspirations and the continuing paralysis of
poverty.
    Ifhk)?3)83;3' 9!!8:8-) '974:3',
     elivls o icial souces The weapons and inspiration come from the
Soviet Union and its satellites, mainly Bulgaria.
    The pro-Western Turkish generals in power mince no words: arms for a
dozen or so Kurdish underground organizations were smuggled in from
Bulgaria or dropped by Soviet boats along the Black Sea coast.
    After a period of relative calm, a number of terrorist attacks shook
the Kurdish areas of Turkey. A man identified as Kemal Pir, arrested
last Dec. 5, reportedly confessed to 11 political murders.
    Pir is a member of the Kurdish resistance group which calls itself
''APO.'' Its leader, Abdurrahman Ocal, fled to Lebanon after the
military coup. In recent weeks, martial law authorities have rounded
up 1,200 Kurds suspected of being ''APO'' members.
    In Ankara itself, 33 Kurds were detained, allegedly members of
another organization known as ''The Socialistic Party of Turkish
Kurdistan.''
    According to Turkish military sources, at least nine Kurdish
underground groups are leftist in ideology and benefit from Soviet
Bloc material support. This assertion is hard to verify. It is known,
however, that recently three Kurdish left-wing organizations in
Turkey have banded together to form a pro-Soviet ''Kurdish Communist
Party'' (KCP). They are Ozgurluk (Freedom,), the Cultural Democratic
and Revolutionary Association (DDKD) and the partisans of the Kurdish
National Liberation (KUK).
     One of the main difficulties confronting the Kurds is their
fragmentation--national, political and religious. Nationally, they
are split between the countries they inhabit, without effective
coordination. Politically, they are often exploited by regimes and
opposition groups which have no interest in Kurdish independence or
autonomy. As far as the Moslem religion is concerned, Kurds are
either Shia or Sunni.
    All this does not help their struggle for statehood and dignity. And
in Turkey, the military leaders have served a stiff warning. No
separatist tendencies will be tolerated.
    The Turkish army may be short of modern weapons for an international
confrontation but it can certainly deal with nationalist stirrings
inside Turkey.
    ENDIT BOROWIEC
    
nyt-12-23-80 0304est
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n516  0049  23 Dec 80
BC-SANTA-12-23
    By Linell Smith
    The Baltimore Evening Sun (Field News Service)
    Tis the season of Those Amazing Santas. Of soapflake snow, Muzak
choirs and little motorized mammals. Of Good Housekeeping madonnas
wrapping infants in matching slumber sets (gown, $14.95, sleep cap,
$6.95).
     On Thanksgiving cue, the Santas have invaded the malls. There is
stiff competition. Which Santa has the Godiva chocolates? Which Santa
plays krummhorn for the Chevy Chase (Md.) Pro Musica Antiqua? Which
Santa has the working-class mother?
     Which Santa is the most authentic?
     It's a matter of grave concern to all those press agents out there
pulling sleighs.
     Who should know? Why the kids, of course. Let's get Mikey to try
the Santas. In the malls in Washington, D.C., kids are judging the
Santas on a scale of 1 to 10. A special Christmas computer feeds
up-to-date ratings into the shopkeepers' carol books. After all, the
public has a right to shop at the mall with the realest Santa, to
climb into his lap, to whisper little wishes.
    ''I'd like the Rosie Ruiz marathon game . . . and a cappucino maker
for my dad.''
    Those Amazing Santas.
    A panel of well-known television reporters who specialize in
debunking myths recently visited a ''9'' Santa at a local mall.
    Barbara: ''How would you and Mrs. Santa rate each other as friends .
. . as lovers . . . as business partners? Do you sleep in twin beds?
Why no children? Do you regret your previous associations with the
late Shah of Iran? . . . Please be good to us, Santa.''
    Mike: ''How do you answer charges linking you with the U.S. toy
industry and contributing to the corruption of minors through the
sale and distribution of guns and other mock-military hardware?''
    Dick: ''What was it like sitting for Thomas Nast? Can you describe
Christmas with Goethe?''
    Geraldo: ''Do you consider yourself a symbol of pop culture? How
many minority elves do you employ? Do you take speed on Christmas
Eve?''
    Phil: ''Don't you think it's irresponsible to teach children to get
something for nothing? Isn't that what's wrong with this country?
What about people's right to privacy? Level with us Santa, what's
really in this for you?''
    Those Amazing Santas.
    Listen as Dr. Zoe, expert sociologist, tells how Santa typifies
centuries of male domination.
    ''Santa, giver of presents and visitor of chimneys, should, by all
rights, be a woman,'' says the eminent Dr. Zoe. ''Giver of Presents
equals Mother's Unconditional Love. Visitor of Chimneys equals She
Who Is Domestic.
    ''The chimney obviously symbolizes the birth canal. Maybe even
conception itself. And who can dispute that big round belly?''
    Those Amazing Santas.
    ENDIT SMITH
    
nyt-12-23-80 0350est
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a036  0215  23 Dec 80
PM-Hostages, Bjt,590
Report Hostages May Have Christmas Services
By The Associated Press
    Iran's hard-line Moslem government may allow a Protestant minister
and a Roman Catholic priest to celebrate Christmas with the American
hostages, who are virtually assured now of spending their second
Christmas in captivity.
    Swiss diplomats representing U.S. interests in Tehran had said
Monday they still awaited definite word from the Iranians on whether
the clergymen, who live in Iran, would be allowed to conduct services
with the hostages on Christmas Day, which will be their 418th day as
captives.
    A reporter in Tehran said today that the Iranians have yet to
release the names of the clergymen who would conduct the services.
    In Rome, Greek Catholic Archbishop Hilarion Capudji said he is
prepared to go to Tehran to celebrate a Christmas Mass for the
hostages but is awaiting approval from the Iranians. Most of the 52
captives are Christians.
    The Syrian-born prelate has made numerous trips to Iran in the past
year and helped negotiate the return of the bodies of eight U.S.
servicemen killed in last April's failed military rescue attempt.
    It will be the second Christmas in captivity for the American
hostages, who were seized Nov. 4, 1979. The report that they might
have Christmas services came against a backdrop of renewed threats of
spy trials or another debate on their fate by the Iranian Parliament,
or Majlis.
    Iran's Prime Minister Mohammad Ali Rajai warned Monday that the
hostage issue would be returned to the Parliament for new decisions if
the United States does not meet Iran's $24 billion demand for their
release.
    Rajai, in a report carried by the Syrian news agency, was quoted as
saying, ''The whole issue will be returned to the Parliament in order
to make new decisions.'' The report did not specify what those
decisions might be.
    The statement represented a new wrinkle in Iran's possible reaction
to American rejection of its latest demands which were called
''unreasonable'' by Secretary of State Edmund S. Muskie.
    Iran wants the United States to deposit $24 billion in cash and gold
with the Algerian central bank as a guarantee for the return of
assets the Iranians consider rightfully theirs.
    Earlier Monday, the speaker of the Iranian Parliament, Hashemi
Rafsanjani, said he did not expect the issue to return to the
Parliament, noting that it had set the four basic conditions and had
already recommended spy trials if the United States did not accept
them.
    ''I have not yet seen the official U.S. reaction,'' Rafsanjani told
a Tehran news conference. ''But if the United States is not ready to
give us our rights our last act will be a trial.''
    An aide to Rajai told a reporter in Tehran the Iranians would await
the delivery of the U.S. response through Algerian intermediaries
before deciding their next steps. U.S. officials said Monday a formal
reply probably will not be completed until later this week.
    Meanwhile, U.S. officials disputed a statement by an Iranian
official that the hostages were transferred to ''very beautiful
hotels.'' U.S. officials said letters from the captives indicated some
were in prisons and a State Department spokesman said they were not
receiving adequate medical care.
    At the Vatican, Pope John Paul II, in a plea clearly aimed at Iran,
appealed for the release of hostages seized for ''political
retaliation'' or ransom. In his annual Christmas message to Roman
Catholic cardinals, the pontiff said he prayed with ''tears in my
eyes'' that hostage takers would take pity on their victims.
    
ap-ny-12-23 0516EST
**********

a039  0231  23 Dec 80
PM-US-Iran,530
Letters From Hostages Indicate Some Detained
With PM-Hostages, Bjt
By GEORGE GEDDA
Associated Press Writer
    WASHINGTON (AP) - The Carter administration, frustrated by the
prolonged stalemate with Iran in negotiations to free the hostages, is
also concerned that significant numbers of captives are not in
''satisfactory or acceptable condition.''
    And although there is no evidence any of the 52 Americans have died,
the administration is perplexed by the absence of any mail from 18 of
the hostages for the last five months.
    The State Department broke a lengthy silence Monday about the
condition of the hostages after a statement by Iranian Executive
Affairs Minister Behzad Nabavi that the captives are ''hale and
hearty'' and ''living in beautiful hotels with all sorts of facilities
at their service.''
    Department spokesman John Trattner disputed Nabavi, saying that a
number of hostages ''may, in fact, be in prison,'' while others are
not receiving adequate medical attention.
    He accused Iran of failing to respect the ''minimal standard of
treatment or accountability expected by the world community.''
    The events of the last few days appear to have brought the hostage
crisis full circle, with Iran once again making demands seen here as
impossible to meet and with the Carter administration engaging in
public criticism of Iran, much as it did in the early days of the
crisis.
    Just a week ago, Iranian Prime Minister Mohammad Ali Rajai said Iran
had grown weary of the crisis and he suggested that a negotiated
settlement before Christmas was possible.
    Now, Nabavi suggests Iran is prepared to keep the hostages for 10
years, if necessary.
    Thus, barring unforeseen developments, the crisis will be inherited
by the administration of President-elect Ronald Reagan, who takes
office four weeks from today.
    Secretary of State-designate Alexander M. Haig Jr. discussed the
crisis on Monday with Secretary of State Edmund Muskie. ''I am
generally inclined,'' Haig told reporters, ''to support the president
and the secretary of state on issues of this kind.''
    U.S. officials said privately they learned from letters from
hostages that an undetermined number of the captives may be imprisoned
or suffering from inadequate health care.
    They said some of the letters had been received by families of the
hostages after Thanksgiving, when Iran had passed the word to the
United States through Algerian intermediaries that all of the hostages
were in good condition.
    Since the abortive U.S. military rescue operation in April, the
administration has insisted it had not been informed of the
whereabouts of the hostages.
    Trattner said he stands by that position because the administration
does not know in which prison or prisons any of the hostages are
being detained.
    The administration has not yet decided on an official response to
Iran's demands for $24 billion in financial guarantees as the price
for releasing the hostages.
    But Muskie said Sunday the demands were ''unreasonable'' and White
House press secretary Jody Powell said Monday that President Carter
believes American capitulation to Iran's conditions would violate U.S.
''national honor'' as well as its laws.
    
ap-ny-12-23 0532EST
**********

a047  0348  23 Dec 80
PM-Iran-Iraq War,340
Trade Charges In Western Iran Fighting
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq said its ground forces blunted a
three-day counter-offensive in Iran's western highlands and the
Khuzistan oil province today and that its jets staged the first
nighttime air raid in the 93-day-old Persian Gulf war.
    Iran, however, claimed an Iraqi armored brigade was ''crushed'' in
the snow-blanketed highlands of Sar-e-Pol-e-Zahab and Kermanshah in
the foothills of the Zagros Mountains in western Iran, with
rocket-firing helicopter gunships destroying 40 Iraqi forward
positions.
    Iraq claimed 297 Iranian soldiers were killed as Iran's
counterattack ''collapsed'' in the Zagros heights at the northern
sector of the 300-mile warfront and in the rain-drenched marshland of
Khuzistan at the front's southernmost sector.
    Each side reported helicopter-borne paratroopers raided the other's
positions in the western bluffs that command a 100-mile highway to
the Iraqi capital of Baghdad. Both claimed jet assaults on oil
centers.
    Iran's official Pars news agency claimed three Soviet-made Iraqi
jets were brought down in a raid late Monday night on Iran's oil
refining city of Abadan on the eastern coast of the Shatt al-Arab
waterway. The raid killed 15 people in Abadan, Pars added.
    Iraq claimed shooting down four U.S.-made Iranian warplanes during
raids on Iraq's northern and southern oilfields in Kirkuk and Rumaila.
Iran claimed bombing the Iraqi Persian Gulf oil terminal at Fao, 30
miles southwest of Abadan at the mouth of Shatt.
    The oil centers of both petroleum exporting nations have been
severely damaged in repeated air and artillery attacks in the 14 weeks
of war.
    In Paris, meanwhile, Iraqi Vice Premier Tarek Aziz said Iraq has
achieved its military objectives of the war and is ready to negotiate
peace ''from a position of strength,'' according to the official
Iraqi news agency.
    Aziz said it was never Iraq's intention to go beyond the territory
it conquered in Khuzistan and western Iran during the first two weeks
of the war and blamed delay of a negotiated settlement on Iran's
''intransigence.''
    
ap-ny-12-23 0649EST
**********

a059  0509  23 Dec 80
PM-Iran-Quake,300
Five Villages Destroyed In Latest Iran Quake
    NICOSIA, Cyprus (AP) - Five villages were destroyed by an earthquake
that struck central Iran Monday afternoon, but casualties were few
because most people were working outside their homes at the time,
Iran's official Pars news agency reported today.
    The quake, the third in four days, killed at least three persons and
injured more than 200, Pars said.
    Tehran and the holy city or Qom were both jolted but the worst hit
area was in the snow covered mountains southwest of the capital.
    Tehran University's Geophysics Institute said the latest quake
measured 5.3 on the Richter scale, a strength sufficient to cause
considerable damage.
    Its epicenter was 125 miles southwest of Tehran, the institute said.
    Pars said the villages of Giveh, Kalaghneshin, Gandab, Jir and
Dastjerd were completely destroyed. About a dozen more villages were
heavily damaged.
    The two earlier quakes struck within a few hours of each other last
Friday, killing 26 persons. They damaged several of the golden-domed
Moslem strines in the holy city of Qom, and rattled towns and
villages stretching both southwest and northeast of Tehran.
    Iran is one of the most earthquake prone areas of the world. It has
been struck by several major quakes in the past 25 years some of
which killed thousands of people.
    The Richter scale is a measure of ground motion as recorded on
seismographs. Every increase of one number means a tenfold increase in
magnitude. Thus a reading of 5.4 reflects an earthquake 10 times
stronger than one of 4.3.
    A quake measuring 5 is capable of causing considerable damage, 6
severe damage. A 7 reading is a ''major'' earthquake, capable of
widespread heavy damage; 8 is a ''great'' quake, capable of tremendous
damage.
    
ap-ny-12-23 0811EST
**********

a060  0519  23 Dec 80
PM-Haig,450
Califano, Ex-HEW Boss, Will Advise Haig During Hearings
By BARRY SCHWEID
Associated Press Writer
    WASHINGTON (AP) - Secretary of State-designate Alexander M. Haig
Jr., who will face Senate questions on his Watergate role, is getting
legal advice from Joseph M. Califano Jr., a prominent Washington
lawyer who served in Jimmy Carter's Cabinet.
    Haig told reporters Monday that when critical senators look into his
past, he will ''address the full gamut of their concerns.'' So far,
grand juries and other probes have not ''indicated any culpability on
my part,'' Haig said.
    The hearing before the Senate Foreign Relations Committee is
scheduled next month.
    Haig's nomination has stirred controversy among Senate Democrats.
Sen. Edward M. Kennedy of Massachusetts said last week the selection
raised serious questions that had to be resolved. Sen. Alan Cranston
of California asserted the nomination ''should not have been made.''
    Haig said he began preparing for the hearings over the weekend with
Califano. He described the former secretary of health, education and
welfare as ''a very dear, old friend of mine.''
    At a news conference with five other Cabinet nominees, Haig avoided
giving his opinion about the detention of 52 American hostages in
Iran or about other foreign policy problems.
    ''At this juncture,'' he said, ''we have one president and one
secretary of state. I think it behooves all of us to rally behind this
government as long as it remains in office.''
    Haig and the man he will succeed, Secretary of State Edmund S.
Muskie, talked for the first time earlier Monday, discussing the
hostage situation. Neither Haig nor department officials would
disclose the nature of their conversations.
    But about Watergate and his military past, the former NATO commander
and four-star Army general was more forthcoming with reporters.
    He said Senate committees, grand juries and special prosecutor Leon
Jaworski all had found no fault in his actions.
    And he said that while he is a ''great adherent of civilian
control,'' military men have an advantage in seeing ''first hand the
dreadful consequences conflict entails.''
    This, Haig suggested, could help in the pursuit of a foreign policy
based on peace with justice.
    Haig, 56, served as chief of staff for Richard M. Nixon as the
Watergate scandal built to a climax and forced the president to
resign. Haig faces questioning also on the wiretapping of government
officials and reporters and on the secret bombing of Cambodia during
the Nixon years.
    Asked what he thought of former generals taking over the direction
of foreign policy, Haig brought up George C. Marshall, the World War
II general who ran the State Department under President Harry S.
Truman.
    Haig said he hoped to live up to Marshall's legacy and ''make a
somewhat comparable contribution.''
    Marshall is credited with a key role in Western Europe's economic
recovery after World War II.
    
ap-ny-12-23 0820EST
**********

a065  0545  23 Dec 80
PM-US-Iran, 1st add, a039, 100
WASHINGTON: its laws
    Meanwhile, Vice President-elect George Bush said today he believes
the Reagan administration, after inauguration Jan. 20, should start
''from ground zero and review all possible options of every possible
kind'' in deciding how to handle the hostage issue.
    Interviewed in Houston on NBC's ''Today'' program, Bush said the
Reagan administration should determine a course of action only after
studying every negotiating tack that has been taken.
    ''But we don't go in there with a preconceived, secret plan to free
those hostages,'' he said. ''I wish we had one. And if we did have
one, we should have shared it with President Carter.''
    
ap-ny-12-23 0846EST
**********

n553  0545  23 Dec 80
BC-BARTLETT-12-23
    The following Bartlett column is copyrighted and for use only by
newspapers that have arranged for its publication with Field
Newspaper Syndicate. Any other use is prohibited.
    NEWS FOCUS
    RELEASE WEDNESDAY, DECEMBER 24, 1980
    BY CHARLES BARTLETT
    The Patient Americans
    WASHINGTON -- Frustration over the plight of the hostages causes the
mind to jump from the green of Christmas to the evergreen of the
American character, now exhibiting unsuspected dimensions of patience.
    Patience is not among the attributes normally conceded to Americans.
We tend to be seen as precipitate and headlong, almost thoughtless in
our haste to be getting and spending. The rush in which the nation
evolved and the power it swiftly acquired have marked it in the eyes
of the world as more committed to action than contemplation.
    But in the dealings with Iran over the hostages, the American people
have been remarkably patient. They have waited out a drama calculated
to provoke their chauvinism and indignation. The television networks
have tested their composure with heart-searing reports of the anguish
of the relatives. Hopes have been repeatedly raised and dashed by the
erratic ayatollah, but Americans have kept their cool.
    Some, here and abroad, are worried by this tactiturn behavior. They
see it as part of what Solzhenitsyn laments as a ''loss of courage''
in the West, a state of weakness induced by the loss of nerve in
Vietnam. It is certainly true that Americans have learned to be
impressed by the limitations on their power. American leaders
acknowledge doubts that American youth will respond unanimously to an
exertion of force not directly tied to defense of the homeland.
Something of a stoop has indeed developed in the American posture.
    Patience is, as Thomas Hardy wrote, a blending of moral courage with
physical timidity. But as a characteristic for the masses in times in
which problems rarely have simple solutions, it is far better than an
untutored rashness, the sort of bravado that forced the
Spanish-American War on President McKinley. This modern deference to
presidential judgment in go or no-go military decisions is a rational
accommodation to the nuclear age.
    The people's patience will also be a great asset to the incoming
president. Ronald Reagan's mandate does not require the immediate
rescue of the hostages although popular eagerness to revive respect
for American interests was implicit in the election returns. The
people want Reagan to be firm and convincing in his foreign dealings,
but they are willing to be realistic about the Iranian dilemma.
    Yet there can come a point at which patience will fade. ''The
American people are slow to wrath,'' Teddy Roosevelt observed, ''but
when their wrath is once kindled, it burns like a consuming flame.''
Mistreatment of the hostages would make the mood instantly volatile,
but in the present circumstances the public's wrath is diverted
toward those American officials held responsible for inflation and
the decline of the economy.
    The election returns conveyed that wrath, but impatience at all that
has gone wrong is softened for Reagan by a patient realization that
it will take time to change the economy. One surprising national
poll, conducted for the New York Stock Exchange, indicates that
two-thirds of the people will be willing to give the new
administration three years or more to reduce inflation and
unemployment.
    The media will not be patient because they march to their own music
at a tempo set by competition and the search for freshness. The
Democrats will not be patient because the next elections are less
than two years away. But if the people cling to the long view while
they suffer the travails of disinflation, they will give the Reagan
administration a real chance.
    ''It is has been my observation in life,'' President Coolidge
said,'' that if man will only exercise patience and wait, his wants
are likely to be filled.'' This is hardly the spirit of past
exhortations to ''get American moving again,'' but those initiatives
failed so it is sensible of the people to recognize they must endure
changes that will take time. This is why proposals that Reagan
declare ''a national economic emergency'' have a ring of excessive
theatrics. Such a superficial spur could unsettle the patient mood.
    Some aspects of the Reagan agenda, moves against the bureaucrats
like closing down the Department of Education and the Community
Action Agency, will have to occur quickly or be politically blocked.
But in economic policy, patient Americans seem to need only the
reassurance of a new direction set by experts who seem to know what
they are doing.
    In reacting to new leadership on problems that range from the
hostages to the inflation rate, patient Americans appear inclined to
echo Emerson's sentiment that ''this time, like all times, is a good
one if we but know what to do with it.''
    ENDIT BARTLETT
    
nyt-12-23-80 0846est
**********

n006  0643  23 Dec 80
PM-IRAN
By DAVID WOOD
Washington Star Service
    WASHINGTON - The State Department Monday broke its long silence on
the condition of the American hostages in Iran to charge that some
are being held in prison and may be suffering from lack of medical
attention.
    Spokesman John Trattner said the State Department believes that
''significant numbers (of the hostages) are not in acceptable
conditions ... a number of them are in fact in prison.'' He said some
of the hostages are ''not receiving proper medical treatment,'' and
their condition is ''serious enough to give us concern.''
    State Department officials denied that the allegations of
mistreatment of the hostages were made in order to bring pressure of
world opinion on Iran. The officials said the allegations were made
because of statements from Tehran Sunday that the hostages are well
and being housed ''in luxury hotels.''
    ''Our information runs to the contrary,'' said one official, ''and
we simply wanted to get that out into the open. If the hostages are
in such good conditions, then let independent observers in there to
verify that.''
    But another State Department official, who asked not to be
identified, said that the previous U.S. silence on the conditions of
the hostages had been broken out of frustration at Iran's latest
demand.
    On Sunday the terms of the demand - that $23 billion in cash or
other assets be deposited with the central bank of Algeria as a
guarante thathe United rsttes will return Iran's frozen bankaccounts and other -
asses - were rejected by Secretary of State
Edmund Muskie as ''KNEA
NABLE AND BEYOND THE POWER OF THE
PRESIDENT'' TO MEET.
E''R HAVE BEEN AWFULLY CAREFUL FOR A LONG TIME,'' THE OFFICIAL SAID.
''Now there is a kind of feeling of why be so super-careful after
that 
eposterous offer?''
    But he and oth officials were quick to stress that negotiations,
while temporarily stalled ty the Iranian demand, will still be
pursued. ''Ion't see much alternative to keeping on trying,'' said
Trattner.
    The officials said the State Department's information was based on a
spate of letters from some of the hostages received by their families
since Thaksgiving.
    The officials said they have no independent observations on the
conditions of the hostages, and do not know where the they are being
held or which of them is in prison. ''We have no reason to think they
are not all alive,'' said one official.
    Penny Laingen, wife of hostage Bruce Laingen, the U.S. charge
d'affaires in Tehran, said Monday that although many families receive
letters from their relatives held hostage in Tehran, 18 of the 52
families have had no letters since July, and six families have had no
letters since April.
    At the White House Monday, spokesman Jody Powell said President
Carter shared the reaction of the State Department to the Iranian
demand. ''In the president's view, complying with Iran's
counterproposals would violate the law,'' Powell said.
    Powell also said that, in Carter's view, the Iranian demands violate
''our sense of what is proper and honorable,'' even if they were
legal.
    White House and State Department officials stressed Monday, however,
that the U.S. reaction to the Iranian demand is not an official
response. The official answer, they said, will be a more measured
statement.
    The officials said such a response is still being ''mulled over,''
and that it would be conveyed to Iran through the Algerian diplomatic
team that is handling negotiations.
    However, the officials suggested that no response will be made soon.
Warren Christopher, deputy secretary of state who has been handling
much of the negotiation, is on vacation in California, and the
Algerian ambassador to the United States, who is a member of the
negotiating team, has not returned to Washington.
    
nyt-12-23-80 0944est
**********

a073  0652  23 Dec 80
PM-Hostages, 1st Ld - Writethru, a036,770
Eds: IRP leader seys hostages won't be freed till after inauguration,
new info and editing throughout
By The Associated Press
    Two Iranians, a Protestant minister and a Roman Catholic priest,
will celebrate Christmas with the 52 U.S. hostages, diplomats said
today in Tehran. A leading member of Parliament's hardline Islamic
party was quoted as saying he saw no chance for the hostages' release
before President-elect Ronald Reagan takes office.
    Swiss diplomats representing U.S. interests in Tehran said approval
for the religious service was received earlier in the day during a
meeting with government authorities.
    There were indications the service would be held in Farsi, the
Persian language, rather than in English, and that neither the Swiss
nor any other foreign representatives would be allowed to attend.
    It was also unclear whether all of the hostages would be gathered
together for the service and whether it would be held Christmas Eve or
Christmas Day. The diplomats said the clergymen were Iranian citizens
but that their identities were not immediately disclosed.
    In a report from Tehran, the Yugoslav news agency Tanjug said Hassan
Ayat, a member of the hardline Islamic Republican Party in the
Parliament, the Majlis, told the English-language Tehran Times
newspaper he saw no ''possibility at all for the hostages to be
released before Jan. 21,'' a day after the Reagan inauguration.
    Tanjug said Ayat, the party's defeated candidate for president in
elections early this year, was also quoted as saying the latest
Iranian terms for releasing the hostages were ''definite'' and there
were no plans for the Majlis to debate their fate again.
    Prime Minister Mohammad Ali Rajai warned Monday the hostage issue
would be returned to the Parliament for new decisions if the United
States did not meet Iran's $24 billion demand for their release,
according to a report carried by the Syrian news agency. Secretary of
State Edmund S. Muskie has called the Iranian terms ''unreasonable.''
    Dr. Ayat, described by Tanjug as the chief ideologist of the radical
wing of the IRP which blocked earlier efforts to free the hostages,
was quoted as saying that after Reagan takes office and announces his
policy on the hostage crisis ''he will accept Iranian conditions
promptly, because he will have no alternative.''
    The American people would put pressure on Reagan to solve the
problem after realizing it was the U.S. and not the Iranian government
that was delaying the release, he was quoted as saying. After the
hostages were seized, some Iranian officials professed belief that
Americans would rise up against the U.S. government to protest its
past support for the deposed shah as some U.S. citizens had protested
the Vietnam War.
    Rajai today summoned the Vatican representative in Tehran to sharply
protest indirect statements made by Pope John Paul II on the
hostages' continued captivity, Tehran radio reported without
elaboration.
    John Paul, in a plea clearly aimed at Iran, appealed for the release
of hostages seized for ''political retaliation'' or ransom in his
annual Christmas message to Roman Catholic cardinals delivered Monday.
The pontiff said he prayed with ''tears in my eyes'' that hostage
captors would take pity on their victims.
    Meanwhile, the official Pars news agency reported that Iran's public
prosecutor Ayatollah Abdul Karim Mosavi-Ardabili escaped an
assassination attempt in Tehran. The report said a bomb went off as
the bearded chief prosecutor was crossing a Tehran street on his way
to his office, ''but luckily did not harm him in any way.''
    Pars blamed the early morning bomb attack on ''enemies of the
Islamic revolution'' without specific identification. Radio broadcasts
in the Arab world, monitored in Beirut, said underground terrorists
of Iran's anti-clerical group Forghan claimed responsibility.
    Forghan has claimed responsibility for seversl assassinations and
assassination attempts since Ayatollah Ruhollah Khomeini's Islamic
revolution came to power nearly two years ago. Many Forghan
guerrillas, who call for a complete withdrawal of the clergy from
Iranian politics, have been arrested and some executed by Islamic
revolutionary courts. It was not clear whether Ardabili prosecuted any
of the Forghan guerrillas.
    It will be the second captive Christmas for the American hostages
since they were seized Nov. 4, 1979.
    Iran wants the United States to deposit $24 billion in cash and gold
with the Algerian Central Bank to guarantee the return of assets the
Iranians consider rightfully theirs.
    Meanwhile, U.S. officials disputed a statement by an Iranian
official that the hostages were transferred to ''very beautiful
hotels.'' U.S. officials said letters from the captives indicated some
were in prisons and a State Department spokesman said they were not
receiving adequate medical care.
    
ap-ny-12-23 0953EST
**********

a079  0716  23 Dec 80
PM-Hostages, 2nd Ld, a073,260
Eds: Envoys meet with three hostages at Foreign Ministry, new grafs
1-2, 6-7
By The Associated Press
    Two Iranians, a Protestant minister and a Roman Catholic priest,
will celebrate Christmas with the 52 U.S. hostages, Swiss diplomats
said today in Tehran. The diplomats also said they met with three
hostages held at the Iranian Foreign Ministry and decribed them as
being in good health.
    Meanwhile, a leading member of Parliament's hardline Islamic party
was quoted as saying he saw no chance for the hostages' release before
President-elect Ronald Reagan takes office.
    Swiss diplomats representing U.S. interests in Tehran said approval
for the religious service was received during a meeting with
government authorities.
    There were indications the service would be held in Farsi, the
Persian language, rather than in English, and that neither the Swiss
nor any other foreign representatives would be allowed to attend.
    It was also unclear whether all of the hostages would be gathered
together for the service and whether it would be held Christmas Eve or
Christmas Day. The diplomats sa$d the clergymen were Iranian citizens
but that their identities were not immediately disclosed.
    The Swiss diplomats said they met earlier in the day with three of
the hostages who have been held at the Foreign Ministry in Tehran. The
whereabouts of the remaining 49 hostages, originally kept at the U.S.
Embassy, has not been made clear by Iranian officials.
    The three at the Foreign Ministry - Charge D'affaires Bruce Laingen,
political officer Victor Tomseth and security officer Michael Howland
- were in good physical condition and were aware of the latest
Iranian demands and the negative U.S. response, the diplomats said.
    In a report: 5th graf
    
ap-ny-12-23 1018EST
**********

a212  1042  23 Dec 80
AM-Christmas, Bjt,640
Christmas 1980: Joy And Sorrow, Celebration And Strife
By LOUISE COOK
Associated Press Writer
    Peace on Earth.
    War in the Middle East.
    Good will toward men.
    An attack on the peacemakers.
    But while the shadow of trouble hung over the world's Christmas
preparations on Tuesday, the spirit of joy and love managed to shine
through.
    A thief who stole a little girl's bicycle in Alaska sent her an
apology - and a money order for $200.
    A famous entertainer arranged to make the holiday a little brighter
for 25,000 blind, retarded and handicapped children.
    A group of high school students sent Christmas messages to the
family of one of the American hostages in Iran. ''Anything to show
they were caring and understanding,'' explained their teacher.
    The news on Tuesday was a poignant blend, a mixture of national and
international strife and personal celebration.
    In Tehran, Swiss diplomats said that two Iranians, a Protestant
minister and a Roman Catholic priest, will celebrate Christmas with
the 52 hostages. It was not clear whether the hostages - spending
their second Christmas in captivity - would be gathered together for
the occasion or whether there would be separate observances.
    In Indianapolis, 150 students from Northview Junior High School
decorated their Christmas tree with symbolic yellow ribbons and wrote
letters to Mr. and Mrs. Arthur Kupke of Francesville, Ind., the
parents of hostage Frederick Lee Kupke, 33. ''They wanted to show the
Kupkes they really cared,'' said teacher Ann Wilkerson.
    In Beirut, Lebanon, a crowd of 300 Arab villagers attacked and
burned a U.N. building and six U.N. cars and beat up staff members. A
spokesman for the United Nations said the villagers were angry about
the failure of a U.N. peacekeeping force to stop Israeli raids in
southern Lebanon.
    Bethlehem, where Jesus was born, prepared for the traditional
celebrations, but Israeli security forces outnumbered tourists in
Manger Square in the center of the town.
    There was tradition, too, in the mountain villages of southern Italy
- the tradition of shepherds playing their bagpipes. But there also
was sorrow. ''How can we enjoy ourselves when there are still bodies
under the rubble?'' said Giovanni Pinati, mayor of Avellino, one of
the towns leveled by the Nov. 23 earthquake that killed nearly 3,000.
    In Chelm, Poland, 15 miles from the Soviet border, workers at 50
factories held a one-hour strike. The independent trade union,
Solidarity, said the workers were protesting the size of the Christmas
meat ration from the government.
    Christmas brought an apology from the man who stole Lisa
Galloso-Richardson's bicycle just after Thanksgiving. ''My conscience
moves me to pay you for the bike,'' read a note that arrived at the
home of the 8-year-old Anchorage girl. ''I'm sorry it happened, but
there was a reason. I came into some money so I can send you this.''
Lisa's mother said there was a name and a return address with the note
and money order which accompanied it, but she did not make the
information public, saying only: ''We would like to wish him a very
Merry Christmas.''
    Thousands of children will get an extra present this year thanks to
entertainer Sammy Davis Jr., who arranged for the Milton Bradley Co.
of Springfield, Mass., to send about $500,000 worth of electronic
''Simon'' games to the Living Center for the Blind in Pasadena, Calif.
The center, of which Davis is a director, will have the toys
delivered to 5,000 children in San Francisco, 5,000 in New York City
and 15,000 in Los Angeles. Davis himself is blind in one eye.
    Many Americans trying to get home - or away - for the holidays found
the going rough. Ice glazed highways along the East Coast and fog
disrupted flights at California airports. Among those going home was
Jimmy Carter, flying to Plains, Ga., for his last Christmas as
president. His successor, Ronald Reagan, also was at home - on the
opposite side of the country, in California.
    
ap-ny-12-23 1343EST
**********

a216  1108  23 Dec 80
AM-US-Iran,230
US Repeats Warning of Serious Consequences If Hostages Tried
    WASHINGTON (AP) - The State Department reaffirmed on Tuesday that
Iran would face ''serious consequences'' if it puts the 52 American
hostages on trial.
    Department spokesman John Trattner responded to a statement Monday
by the speaker of Iran's Parliament, Hashemi Rafsanjani, that the
hostages would be tried as spies if the United States did not meet
Iran's demands for the release of the captives.
    Trattner did not say what the consequences for Iran would be, noting
only that the administration had served notice on Iran long ago that
the United States was prepared to take punitive action in the event
the hostages are tried.
    Trattner all but conceded that the administration's rejection of
Iran's $24 billion price tag for the captives' freedom virtually ruled
out any settlement during the four weeks President Carter has left in
office.
    ''You can look at the calendar as well as I can,'' Trattner said.
But, he added, ''The effort to free the hostages will continue.''
    He said the administration had no confirmation of reports from Iran
that Swiss diplomats visited the three hostages confined to the
Iranian Foreign Ministry and that clergymen resident in Tehran will be
allowed to conduct Christmas services for the 52 captives.
    If the reports are true, Trattner said, the United States would
welcome them.
    
ap-ny-12-23 1409EST
**********

a231  1253  23 Dec 80
AM-Millionaire Giveaway,450
Silver Dollars Given to Donors to Salvation Army Kettle
Laserphoto NY35
By JUDIE GLAVE
Associated Press Writer
    NEW YORK (AP) - When Percy Ross was 6 and poor, the Salvation Army
helped his family. Now he's 63 and a millionaire, and he came here
Tuesday to repay some of that generosity.
    ''I have more than I need for myself,'' said Ross, standing on Fifth
Avenue next to a Salvation Army band and singers while sleety, slushy
snow fell on the city. ''Why not share it?''
    And share the Minneapolis philanthropist did, handing out silver
dollars to everyone who donated a dollar or more to the charity
organization.
    ''My motto is the same as the Salvation Army's,'' he said, ''Sharing
is Caring. 
    ''They helped me out when I was poor. When I was 6 years old, they
were the ones who put food on my family's table and kept us going,''
said Ross, who made his fortune by making plastic garbage bags.
    As donors were handed their ''gift,'' neatly enclosed in a cardboard
wrapper signed, ''With Love from Percy Ross,'' skeptical passersby
wanted to know, ''What's the gimmick?'' and, ''Is this guy for real?''
    Some of those who thanked Ross had heard of his past giveaways,
including tossing out nearly $17,000 at a parade, spending $30,000 on
a retirement party for his favorite skycap and offering to raise $50
million to ransom the hostages in Iran, thanked him.
    More
    
ap-ny-12-23 1554EST
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a234  1314  23 Dec 80
AM-Iran-Hostages,Bjt,650
Iranian Clergymen To Visit Hostages
By The Associated Press
    Iran's government agreed Tuesday to let two Iranian clergymen visit
the 52 U.S. hostages celebrating a second Christmas in captivity and
Swiss envoys in Tehran met with three hostages and reported them in
good condition.
    A leading Islamic hardliner was quoted, meanwhile, as saying the
captives would not be freed under President Jimmy Carter and that
President-elect Ronald Reagan would accept Iran's terms for their
release ''promptly'' because he will have no other choice.
    In Washington, the State Department reaffirmed that Iran would face
''serious consequences'' if it put the hostages on trial. Department
spokesman John Trattner responded to a statement Monday by the
speaker of Iran's Parliament, Hashemi Rafsanjani, that the hostages
would be tried as spies if Iran's demands were not met.
    Trattner did not say what the consequences for Iran would be, noting
only the administration had served notice on Iran long ago that it
was prepared to take punitive action if the hostages were tried.
    The Swiss diplomats, who represent U.S. interests in Tehran, said
Iranian government officials had told them they would allow the
Iranian clergymen - a Roman Catholic priest and a Protestant minister
- to conduct services for the captives on Christmas Eve or Christmas
Day.
    The clergymen's identities were not disclosed, nor did the Iranians
say whether all of the hostages would be brought together for the
service, the envoys said.
    There were indications that neither the Swiss nor any other foreign
representatives would be allowed to attend and that the service would
be conducted in Farsi, the Iranian language, rather than English. A
year ago, three U.S. clergymen were permitted to conduct Christmas
services for the hostages, meeting them in groups of five or six each.
    The diplomats also disclosed they met earlier in the day for 90
minutes with the three hostages held at the Iranian Foreign Ministry
since the U.S. Embassy in Tehran was seized 416 days ago.
    Charge d'Affaires Bruce Laingen, political officer Victor Tomseth
and security officer Michael Howland were in good physical condition,
the envoys said, and were aware of the latest Iranian demands and the
negative U.S. response to them.
    ''I was astonished to see how well they took it,'' said Flavio
Maroni, first secretary to the Swiss Embassy in Tehran. ''I was
nervous before I went but I can tell you they are very courageous
men.''
    He expressed concern over the welfare of the other 49 hostages, none
of whom has been seen by a foreign representative since last spring.
The Iranian government has declined to provide details of their
whereabouts.
    In Bern, a Swiss Foreign Ministry spokesman said Iranian officials
had rejected a Swiss Embassy offer to organize holiday celebrations.
''We had hoped to be able to do something for all the hostages,'' said
spokesman Othmar Uhl. ''But this proved to be impossible.''
    Secretary of State Edmund S. Muskie has termed ''unreasonable''
Iran's latest demands delivered by Algerian intermediaries last week
that the U.S. government deposit $24 billion in cash and gold in
Algeria's Central Bank as a condition for release of the hostages.
    A commentary Tuesday on Tehran radio called Muskie's response
''comic,'' and termed ''ridiculous'' statements by Trattner that some
hostages may be in prison or ill and not receiving proper medical
care.
    In a report from Tehran, the Yugoslavia news agency Tanjug said
Hassan Ayat, a member of the hardline Islamic Republican Party in
Iran's Parliament, the Majlis, told the English-language Tehran Times
newspaper he saw no ''possibility at all for the hostages to be
released before Jan. 21,'' a day after the Reagan inauguration.
    Tanjug said Ayat, the party's defeated candidate in presidential
elections early this year, was also quoted as saying that after Reagan
takes office and surveys the hostage situation, ''he will accept
Iranian conditions promptly, because he will have no alternative.''
    
ap-ny-12-23 1615EST
**********

n046  1320  23 Dec 80
BC-HAIG
(Newhouse 009)
By PHILIP W. SMITH
Newhouse News Service
    WASHINGTON - There will be no honeymoon for Gen. Alexander M. Haig
when he takes office as secretary of state in the Reagan
administration.
    The minute he walks into his seventh-floor office at the State
Department building, Haig will be faced with a multitude of
international problems demanding attention.
    If the Iranian hostage issue is unresolved - as now appears likely -
it will be just one of many foreign policy matters the new secretary
of state will find waiting for him.
    Near the top of the list with the hostages will be what to do about
the still-pending new Strategic Arms Limitation Treaty with the
Soviet Union; the next phase of the Camp David Middle East accords; a
sale of supersonic F-15 jet fighters to Saudi Arabia; continuing
violence in Central America, and the Iran-Iraq war.
    In addition, Haig could be confronted with a major change in
leadership in China, a Soviet invasion of Poland, a reduction in
defense spending by some NATO allies, or any of several other
simmering world situations that could erupt during the next month.
    Before he takes office, Haig faces several days of questioning by
Democrats on the Senate Foreign Relations Committee about his role as
a top aide to President Nixon during the Watergate scandal.
    With the Republicans in control of the new Senate, he is expected to
be confirmed, probably in time to take office immediately after
Reagan is sworn in on Jan. 20.
    By the time it is likely to be dumped in his lap, the lingering
hostage crisis will be 14 1/2 months old and is certain to remain a
major priority for Haig, as it has been for his predecessors,
Secretaries Cyrus Vance and Edmund Muskie.
    But other matters also will require attention.
    Throughout his campaign, President-elect Reagan said the SALT
agreement, as signed by President Carter nearly two years ago, is
unacceptable. Reagan has said he would be willing to reopen
negotiations with Moscow, but Soviet officials have indicated since
the election that they may not agree to new talks.
    It will fall mainly to Haig to resolve a possible impasse on the
issue.
    In the Mideast, the Reagan administration must decide if it will
include bomb racks and wing fuel tanks on F-15 fighters the Carter
administration already has agreed to sell to Saudi Arabia.
    The bomb racks would make the fighters offensive weapons, and the
extra fuel tanks would give the planes the range to reach targets in
Israel.
    Because of this, Carter has refused to authorize the added
equipment. But oil-rich Saudi officials already have served notice
that they consider their request for the additional equipment a test
of future relations with the new administration.
    Also in the Middle East, by long-standing agreement, the foreign
ministers of Egypt and Israel are scheduled to meet here in early
April with the U.S. secretary of state to work out the final
withdrawal of Israeli troops from the Sinai.
    The Camp David treaty calls for an armed international peacekeeping
force to replace the Israelis, with the United States responsible for
forming the force if the United Nations is unable to do it.
    Since the Soviets are expected to veto any UN effort, the burden
likely will fall on the United States. Israel would be happy to have
an all-U.S. force, but Egypt wants no American soldiers involved. If
other nations can be persuaded to supply the manpower, someone will
have to pay the cost - and again, the most likely candidate is the
United States.
    With Reagan committed to a large increase in defense spending, he
will take office just when the major European NATO powers are having
second thoughts about their 1977 pledge to increase their defense
budgets annually by 3 percent above inflation.
    West Germany announced earlier this month it will raise military
spending only 2.2 percent above anticipated inflation next year. As a
former NATO supreme commander, Haig is expected to be heavily
involved in U.S. efforts to persuade the Europeans to meet their 1977
commitment.
    Elsewhere in the world, Soviet troops remain poised on Poland's
borders in a high state of readiness, apparently prepared to
intervene if labor unrest there worsens.
    There are signs that a major political shakeup is occurring in China
with speculation that Communist Party Chairman Hua Guofeng may soon
be replaced.
    In Latin America, political violence between right-wing and
left-wing extremists in El Salvador threatens to erupt into
full-scale civil war.
    The war between Iran and Iraq, now in its fourth month and bogged
down because of winter weather, is expected to heat up again when
spring comes - with the potential once again of disrupting world oil
supplies. RB END SMITH
    
nyt-12-23-80 1621est
**********

a256  1529  23 Dec 80
AM-Christmas Tree,160
National Christmas Tree to Shine Brightly - Briefly - Christmas Eve
    WASHINGTON (AP) - The national Christmas tree, dark for the second
year as a reminder of America's hostages in Iran, will shine brightly
on Christmas Eve after all. For 417 seconds - one second for each day
of captivity.
    A group of hostage families asked the White House to join in an
observance promoted by radio stations around the country and turn on
the tree's lights at 10 p.m. Wednesday. The White House agreed.
    Last Thursday, President Carter took part in the traditional tree
lighting ceremony on the Ellipse next to the White House, but for the
second straight year only the star on top of the tree was lighted.
    He had said last year that ''we will turn on the other lights on the
tree when the American hostages come home.''
    The radio stations have asked listeners to step outside Christmas
Eve and turn on a light for 6 minutes, 57 seconds to demonstrate their
support for the hostages.
    
ap-ny-12-23 1830EST
**********

a261  1558  23 Dec 80
AM-War Rdup,330
Iraq Stages First Night Raid of the War
By FAROUK NASSAR
Associated Press Writer
    BEIRUT, Lebanon (AP) - Iraq staged its first nighttime air raid in
the Persian Gulf war with Iran early Tuesday, with jet fighter-bombers
striking the besieged oil refinery city of Abadan.
    Iraqi Vice Premier Tarek Aziz, in Paris on an arms-shopping mission,
said Iraq had achieved its military objectives in western and
southwestern Iran and was ready to ''negotiate peace from a position
of strength.'' There was no immediate response from Iran.
    An Iranian communique confirmed the night rai